U.S. Biotech Completes $3 Billion Acquisition of Narcolepsy Treatment

Alkermes plc (NASDAQ: ALKS) on February 12 completed its acquisition of Avadel Pharmaceuticals via a court-approved scheme of arrangement in Ireland, adding the FDA-approved narcolepsy treatment LUMRYZ and an established commercial organization to its portfolio. The transaction was funded with approximately $750 million of Alkermes’ cash on hand and $1.525 billion of new term loans maturing in 2031, for a total outlay of about $2.3 billion (roughly KRW 3 trillion). Alkermes expects the deal to begin contributing to its financial results in 2026 and plans to record roughly $40 million of transaction-related expenses in Q1 (about KRW 50 billion), as well as amortization of LUMRYZ-related intangibles over 13 years and incremental interest costs.

On February 25, Alkermes will report its Q4 and full-year 2025 results and outline its 2026 financial outlook and corporate strategy. Its investigational type 1 narcolepsy therapy, Alixorecton, was designated a Breakthrough Therapy by the U.S. Food and Drug Administration in January.

Headquartered in the United States, Alkermes is a biopharmaceutical company focused on central nervous system disorders, with marketed therapies for schizophrenia and alcohol and opioid dependence. The Avadel acquisition extends its reach into the rare, hard-to-treat sleep disorder market. With significant unmet needs in narcolepsy and idiopathic hypersomnia, the sleep-disorder treatment sector has attracted strong growth interest, spurring mergers and acquisitions and intensified new drug development competition among global pharmaceutical companies.