Alkermes seeks to fend off Lundbeck with improved Avadel bid

Ireland-based Alkermes (Nasdaq: ALKS) has upped its offer to buy Avadel Pharmaceuticals (Nasdaq: AVDL).

Under the improved bid, Alkermes will buy Avadel for a total transaction consideration of up to $22.50 per share, consisting of $21 in cash and one non-transferable contingent value right (CVR) entitling holders to a potential additional cash payment of $1.50 per share, contingent upon final US Food and Drug Administration (FDA) approval of Lumryz (sodium oxybate) for the treatment of idiopathic hypersomnia in adults, by the end of 2028.

The increased offer values Avadel at up to approximately $2.37 billion, assuming the milestone payment is made, where the previous bid was based on a $2.1 billion valuation.