Overview
- Lundbeck submitted an unsolicited proposal of $21 in cash plus up to $2 in contingent value rights per Avadel share, tied to combined U.S. sales of Lumryz and valiloxybate reaching $450 million by end-2027 and $700 million by end-2030.
- Avadel described Lundbeck’s approach as a “superior proposal,” yet said its board has not determined superiority or changed its recommendation supporting the Alkermes deal.
- Avadel’s existing agreement with Alkermes offers $18.50 per share in cash plus a CVR of up to $1.50 tied to potential FDA approval of Lumryz for idiopathic hypersomnia.
- Shares of Avadel jumped more than 20% after the Lundbeck bid, while Alkermes fell over 6%, reflecting expectations for a potential bidding contest.
- Wall Street notes Lundbeck may have greater deal capacity than Alkermes (about $3.8 billion versus $2.7 billion) and flags aggressive CVR milestones and generic Xyrem pressure as key risks to overpaying.