Nov 19 (Reuters) - Alkermes ( ALKS ) said on Wednesday

it has sweetened its offer to buy Avadel Pharmaceuticals ( AVDL )

, valuing the sleep disorder drugmaker at up to $2.37

billion after a competing proposal from Denmark's Lundbeck.

The revised offer includes $21 per share in cash and a

contingent value right of $1.50 per share, payable if the U.S.

Food and Drug Administration approves Avadel's sleep disorder

drug Lumryz for idiopathic hypersomnia by the end of 2028.

Avadel's board said it now favors Alkermes' ( ALKS ) improved bid

over Lundbeck's proposal. While both offers include the same

$21-per-share upfront cash payment, Avadel said Alkermes' ( ALKS )

contingent payment terms were more likely to be met.

The board called Lundbeck's milestone-based payments

"unlikely to be achieved."

The bidding war began in October when Alkermes ( ALKS ) first agreed

to buy Avadel for up to $2.1 billion, offering $18.50 per share

in cash plus a contingent payment of $1.50.

Lundbeck then made a

competing bid

of up to $23 per share, which included $21 in cash and up

to $2 in payments tied to future U.S. sales performance.

Last week, Avadel's board said the Lundbeck offer could

constitute a "superior proposal" under the terms of its original

agreement with Alkermes ( ALKS ), allowing the company to engage in

discussions with the Danish drugmaker.

Boards of both companies have approved the amended

agreement, which is expected to close in the first quarter of

2026.