Avadel Pharmaceuticals Acquisition & Valuation

Avadel Pharmaceuticals was acquired by Alkermes for $2.4B in October 2025.

Avadel Pharmaceuticals Overview

About Avadel Pharmaceuticals

Avadel Pharmaceuticals PLC is a specialty pharmaceutical company. The group focused on transforming medicines to transform lives. It provides solutions to the development of medications that address the challenges patients face with current treatment options. The company is engaged in the development of differentiated drug products for administration in various forms such as capsules, tablets, injectables etc. Its commercialized product LUMRYZ is an extended-release formulation of sodium oxybate indicated to be taken once at bedtime for the treatment of cataplexy or EDS in adults with narcolepsy. It operates in one segment, the development and commercialization of pharmaceutical products, including controlled-release therapeutic products based on its proprietary polymer-based technology.


Founded

2015

HQ

United StatesDublin

Website

avadel.com

Status

Acquired

Customer focus

B2C

Revenue model

Product sales

Valuation

$2.4B (acquired Oct 2025)

Avadel Pharmaceuticals Acquisition

Avadel Pharmaceuticals was acquired by Alkermes for $2.4B on 22 October 2025.

Avadel Pharmaceuticals plc, a commercial-stage biopharmaceutical company, develops and markets LUMRYZ, an FDA-approved once-at-bedtime sodium oxybate for treating excessive daytime sleepiness and cataplexy in adults with narcolepsy type 1, with projected 2025 net revenues of $265-$275 million from over 50,000 eligible patients. Alkermes plc, a neuroscience-focused biopharmaceutical company advancing orexin receptor agonists like alixorexton for narcolepsy, acquired Avadel to accelerate entry into the sleep medicine market, diversify its portfolio with the high-growth LUMRYZ, leverage Avadel's commercial infrastructure for rare disease sales, and support pipeline expansion including phase 3 trials for idiopathic hypersomnia label extension and valiloxybate development. The deal emerged amid a bidding war, with Lundbeck offering $23 per share, but Avadel's board favored Alkermes' superior terms after consultation with advisors. Alkermes initiated the acquisition in late October 2025 with an initial offer of $20 per share ($18.50 cash plus $1.50 CVR), valuing Avadel at $2.1 billion, a 38% premium to the three-month weighted average trading price. Following Lundbeck's rival $2.4 billion bid, Alkermes revised to $22.50 per share ($21.00 cash plus $1.50 CVR contingent on LUMRYZ approval for idiopathic hypersomnia by end-2028), valuing the deal at $2.3-$2.37 billion; Avadel terminated the Lundbeck talks on November 18, 2025, affirming the Alkermes agreement. Both boards approved the all-cash transaction, expected to be immediately accretive with cost synergies, targeting closure in Q1 2026, which occurred on February 12, 2026, integrating LUMRYZ and Avadel's hypersomnolence expertise into Alkermes' portfolio.

Avadel Pharmaceuticals acquisition details
AcquirerDateTypePrice
22 Oct 2025Strategic M&A$2.4B

Avadel Pharmaceuticals Competitors

Avadel Pharmaceuticals competitors include listed companies like ABL Bio, Nektar Therapeutics, Bavarian Nordic and SELLAS Life Sciences, and private ones like Cambrian Biopharma and Insitro.

Public and private companies comparable to Avadel Pharmaceuticals
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
ABL BioSouth KoreaSouth KoreaPublicly listed$58M($27M)$2.4B32.0x
Nektar TherapeuticsUnited StatesUnited StatesPublicly listed$55M($139M)$2.3B37.8x
Bavarian NordicDenmarkDenmarkPublicly listed$961M$383M$2.4B2.2x
SELLAS Life SciencesUnited StatesUnited StatesPublicly listed-($28M)$2.3B-
Cambrian BiopharmaUnited StatesNew York City, NYPrivate--$2.5B-
InsitroUnited StatesSan Francisco, CAPrivate--$2.2B-

Avadel Pharmaceuticals Public Comps

Avadel Pharmaceuticals is no longer listed, but its public comps include ABL Bio, Nektar Therapeutics, Bavarian Nordic, SELLAS Life Sciences, Sinocelltech Group, Buchang Pharma, China Res Double-Crane, Vera Therapeutics, Mineralys Therapeutics and Granules India.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
ABL Bio$58M($27M)39.6x32.0x(86.3x)(45.8x)
Nektar Therapeutics$55M($139M)31.3x37.8x(12.5x)(8.2x)
Bavarian Nordic$961M$383M2.1x2.2x5.2x6.7x
SELLAS Life Sciences-($28M)--(77.5x)-
Sinocelltech Group$233M($45M)11.6x11.8x(59.8x)-
Buchang Pharma$1.8B$173M1.5x-14.8x-
China Res Double-Crane$1.6B$404M1.4x1.4x5.8x6.0x
Vera Therapeutics-($316M)-115.4x(6.5x)(4.8x)

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Common questions about Avadel Pharmaceuticals

When was Avadel Pharmaceuticals founded?Avadel Pharmaceuticals was founded in 2015.
Where is Avadel Pharmaceuticals headquartered?Avadel Pharmaceuticals is headquartered in Dublin, United States.
Is Avadel Pharmaceuticals publicly listed?No, Avadel Pharmaceuticals was acquired by Alkermes in October 2025.
Who acquired Avadel Pharmaceuticals?Avadel Pharmaceuticals was acquired by Alkermes in October 2025.
How much was Avadel Pharmaceuticals acquired for?Avadel Pharmaceuticals was acquired for $2.4B in October 2025.
Which companies are comparable to Avadel Pharmaceuticals?Companies comparable to Avadel Pharmaceuticals include ABL Bio, Nektar Therapeutics, Bavarian Nordic, SELLAS Life Sciences, Cambrian Biopharma and Insitro.

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