Single-Dose Narcolepsy Drug Acquisition: A New Leader in Sleep Medicine Emerges

Alkermes plc. (Nasdaq: ALKS) announced on February 12 the completion of its all-cash acquisition of Avadel Pharmaceuticals, officially entering the sleep-medicine market by adding the FDA-approved narcolepsy treatment LUMRYZ and Avadel’s U.S. commercial organization to its portfolio.

To fund the deal, Alkermes raised roughly $2 billion—comprising $750 million in cash and a new $1.525 billion term loan—and expects the acquisition to be accretive to earnings and boost revenue growth beginning in 2026.

Upon closing, Avadel’s Nasdaq listing will be delisted and its registration canceled, and former Avadel shareholders will receive sequential payments in cash consideration and contingent value rights.

Alkermes’ stock has shown improving technical indicators, with its relative-strength rating rising to 75 on January 22, and is drawing attention ahead of its mid-February earnings release. Analysts maintain a consensus “moderate buy” rating on the shares, with a 12-month average price target in the mid-$40s.

Headquartered in Dublin, Ireland, Alkermes is a biopharmaceutical company focused on central nervous system disorders such as schizophrenia, bipolar disorder, and alcohol and opioid dependence. Through the acquisition of Avadel and its narcolepsy therapy LUMRYZ, Alkermes aims to expand its CNS portfolio into sleep disorders and strengthen its position in the global sleep-medicine market.