Oct 22 (Reuters) - Alkermes ( ALKS ) said on Wednesday

it will acquire Avadel Pharmaceuticals ( AVDL ) in a deal valued

at up to $2.1 billion, gaining an approved sleep-disorder

treatment and expanding into the sleep-medicine market.

The deal gives Alkermes ( ALKS ) an entry into the sleep-medicine

market with Avadel's Lumryz, which is approved to treat

cataplexy or excessive daytime sleepiness in patients aged seven

and older with narcolepsy, a disorder that affects the body's

ability to regulate sleep-wake cycles.

Under the agreement, Alkermes ( ALKS ) will buy all outstanding

Avadel ordinary shares for $18.50 in cash each, a 3.5% premium

to Avadel's last close.

Avadel shareholders will also receive a

non-transferable contingent value right for a potential

additional $1.50 per share, payable if the U.S. Food and Drug

Administration grants final approval of Lumryz for idiopathic

hypersomnia in adults by the end of 2028.

The combined potential per share acquisition price

represents an equity value of approximately $2.1 billion.

The companies expect the transaction to close in the

first quarter of 2026.