Overview
- The agreement values Avadel at $18.50 per share in cash plus a $1.50 contingent value right payable if the FDA approves Lumryz for idiopathic hypersomnia in adults by the end of 2028.
- Boards of both companies approved the transaction, which is expected to close in the first quarter of 2026 with financing from cash on hand and new debt.
- Lumryz is FDA-approved for cataplexy or excessive daytime sleepiness in narcolepsy patients age 7 and older, with about 3,100 patients on therapy and 2025 revenue guidance of $265 million to $275 million.
- Avadel and Jazz reached a global settlement that includes a $90 million payment to Avadel, a perpetual license to patents covering Lumryz, waivers of certain past royalties or damages, and dismissal of litigation.
- Alkermes projects immediate accretion and cost synergies and plans to use Avadel’s commercial footprint to support its orexin-2 agonist pipeline, while analysts offered mixed views on the deal’s price.