Alkermes PLC has expanded into teh sleep disorder market with a definitive agreement to acquire Avadel Pharmaceuticals Inc. in a deal valued at $2.1 billion, the companies announced Monday. The acquisition will add Avadel’s led product, Lopimpramine, a once-nightly oral antidepressant in advancement for major depressive disorder, to alkermes’ portfolio.
The deal represents Alkermes’ strategic entry into a new therapeutic area, diversifying beyond its existing focus on central nervous system disorders like schizophrenia and bipolar disorder. Avadel’s Lopimpramine, if approved by the Food and Drug Administration, could offer a differentiated treatment option for the millions of Americans struggling with depression and sleep disturbances. The transaction is expected to close in the third quarter of 2024, subject to customary closing conditions, including regulatory approvals and Avadel shareholder approval.
Under the terms of the agreement, Alkermes will pay $15.50 per share in cash for each Avadel share, representing a 36% premium to Avadel’s closing share price on Friday. The combined company will leverage Alkermes’ commercial infrastructure and expertise to maximize the potential of Lopimpramine, targeting a launch in the frist half of 2025.
“This transaction is a compelling strategic fit for Alkermes,adding a promising late-stage development asset with notable commercial potential,” said Richard Lawfull,Executive Vice President and Chief Commercial Officer of Alkermes. “Lopimpramine aligns well with our focus on addressing unmet needs in neuroscience and complements our existing portfolio.”
Avadel’s shares jumped more than 30% in premarket trading following the declaration, while Alkermes shares were down slightly. The acquisition is anticipated to be funded through a combination of cash on hand and debt financing.
Alkermes has a history of acquiring and developing innovative therapies, and this move signals a continued commitment to growth and diversification within the pharmaceutical industry. The company’s existing portfolio includes products for schizophrenia, bipolar I disorder, and alcohol dependence.
