Alkermes plc announced that Avadel Pharmaceuticals shareholders have approved the proposed acquisition, bringing the $2.1 billion deal closer to completion. The approval was reached at a scheme meeting and an extraordinary general meeting held on January 12, 2026, with 95.24% of voting shareholders in favor of the scheme. The transaction values Avadel at up to $22.50 per share, adding LUMRYZ™—the only once‑at‑bedtime oxybate for narcolepsy—to Alkermes’ portfolio and is expected to close in the first quarter of 2026.
The overwhelming shareholder support reflects confidence in Alkermes’ strategy to build a sleep‑medicine franchise. The 95.24% approval rate, while slightly lower than the 97.41% reported at the scheme meeting, still represents a decisive mandate and removes a major regulatory hurdle. The approval also signals that Avadel’s shareholders view the $20.00 per share offer, plus a contingent value right (CVR) of up to $1.50 per share contingent on FDA approval of LUMRYZ for idiopathic hypersomnia by the end of 2028, as fair compensation for the future upside.
Strategically, the acquisition positions Alkermes at the forefront of the growing narcolepsy and hypersomnolence market. LUMRYZ’s once‑at‑bedtime dosing differentiates it from twice‑nightly competitors and has already generated $265–$275 million in net revenues in 2025. The deal also gives Alkermes access to Avadel’s commercial infrastructure and a pipeline of orexin‑2 receptor agonists, including alixorexton, which Alkermes plans to advance into phase 3 for narcolepsy. By combining LUMRYZ’s established revenue stream with its own orexin platform, Alkermes aims to accelerate market entry and create a multi‑billion‑dollar revenue opportunity.
Financially, the transaction is immediately accretive. Alkermes will finance the deal with cash on hand and new debt, preserving liquidity while expanding its revenue base. The CVR structure provides an additional upside for Avadel shareholders if LUMRYZ receives final FDA approval for idiopathic hypersomnia, aligning incentives and mitigating risk for Alkermes. Analysts have noted that the $2.1 billion price tag, or $20.00 per share, represents a premium to Avadel’s recent trading levels and is viewed as a fair valuation given LUMRYZ’s market position and the strategic fit.
Management emphasized the deal’s importance. “This transaction represents a pivotal step in Alkermes’ strategic evolution,” said CEO Richard Pops. “With the acquisition of Avadel, we are able to accelerate our commercial entry into the sleep medicine market at a critical inflection point as we prepare to advance alixorexton into a phase 3 program in narcolepsy.” Avadel CEO Greg Divis added, “Alkermes shares our passion for innovation and patient impact and, together, we will continue this important work on behalf of people living with central disorders of hypersomnolence.”
Analysts have responded positively to the strategic fit. While the initial announcement in October 2025 saw a modest decline in Alkermes shares, the recent shareholder approval has reinforced confidence in the company’s growth trajectory. The deal is seen as a clear strategic fit that will provide Alkermes with a marketed product and a platform for future orexin‑based therapies, positioning it as a leading player in the sleep‑medicine market.
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