07:41 AM EDT, 10/22/2025 (MT Newswires) -- Alkermes ( ALKS ) will acquire Avadel Pharmaceuticals ( AVDL ) in a deal valued at about $2.1 billion, the companies said Wednesday.

Under their agreement, the companies said Alkermes ( ALKS ) will make an upfront cash payment of $18.50 per share, plus a potential $1.50 per share in a contingent value right tied to US Food and Drug Administration approval of Avadel's Lumryz for idiopathic hypersomnia in adults by the end of 2028.

The companies said the acquisition gives Alkermes ( ALKS ) control of Lumryz, an FDA-approved treatment for narcolepsy-related symptoms, and marks its entry into the sleep medicine market.

The transaction has been approved by both companies' boards and is expected to close in Q1 2026, the companies said.

Alkermes ( ALKS ) plans to fund the acquisition with existing cash and new debt, and expects the deal to be immediately accretive to earnings and to support future growth, according to the joint statement.

Avadel's ongoing trials for label expansion and other pipeline assets will be integrated into Alkermes' ( ALKS ) broader development plans, including support for its orexin receptor agonist programs, the companies added.

Shares of Avadel Pharmaceuticals ( AVDL ) rose more than 4% in Wednesday's premarket activity, while Alkermes ( ALKS ) shares were down more than 7%.