Alkermes Enters Sleep Medicine Market with $2.1 Billion Avadel Acquisition

Alkermes has announced the acquisition of Avadel Pharmaceuticals in a deal valued at up to $2.1 billion, marking its entry into the fast-growing sleep medicine market. The acquisition grants Alkermes access to Avadel’s Lumryz, an FDA-approved treatment for cataplexy and excessive daytime sleepiness in patients aged seven and older with narcolepsy, a disorder affecting sleep-wake cycle regulation.

Expanding Sleep Medicine Portfolio

Through this acquisition, Alkermes strengthens its neurological pipeline and accelerates its presence in sleep therapeutics. Alongside Lumryz, Alkermes is developing alixorexton, an investigational drug targeting narcolepsy and idiopathic hypersomnia. The company plans to initiate a global late-stage clinical program for alixorexton early next year, positioning itself as a major player in the sleep disorder segment.

Strategic and Financial Impact

Under the agreement, Alkermes will acquire all outstanding Avadel shares for $18.50 per share in cash. Market response saw Avadel shares rise 3.5%, while Alkermes dipped 2% in early trading. “This acquisition enables us to enter the sleep medicine market now and establish a presence ahead of our upcoming innovations,” said Richard Pops, CEO of Alkermes. The move underscores Alkermes’ strategy to diversify beyond psychiatry and oncology into high-demand neurological conditions.