Alkermes Ups Bid for Avadel Amid Lundbeck’s Competing Offer in Narcolepsy Drug Takeover Battle

Alkermes increased its acquisition offer for Avadel Pharmaceuticals after a surprise higher bid from Danish company Lundbeck, intensifying a biotech bidding war centered on Avadel's narcolepsy medication, Lumryz3 6 2.

Alkermes’ revised agreement with Avadel is worth $22.50 per share (including $21 in cash and $1.50 contingent on regulatory milestones), bringing the deal's potential total to approximately $2.37 billion3 6.

Lundbeck's counteroffer valued Avadel at up to $2.4 billion, matching $21 per share upfront but adding a contingent value right (CVR) that could bring the total value to nearly $23 per share if certain commercial milestones for Avadel’s drugs are achieved by 20307 8 9.

Avadel’s board formally considered Lundbeck's proposal to be 'superior,' triggering a window for Alkermes to respond with a new bid7 9 4.

The competitive acquisition process highlights the high strategic value of Lumryz, currently approved for narcolepsy and with potential future indications such as idiopathic hypersomnia2 4.

Both Alkermes and Avadel boards have agreed to the amended Alkermes offer, with the acquisition expected to close in the first quarter of 2026, barring further escalation or reversal1 3.

Analysts caution that while the bidding war signals confidence in Lumryz, both Alkermes and Lundbeck risk overpaying, especially as the narcolepsy drug market faces impending generic competition and patent cliffs2 4.