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Avadel Board Labels Lundbeck Acquisition Bid a Superior Proposal

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Key Takeaways

  • Avadel's board says Lundbeck's unsolicited $23-per-share bid is a Company Superior Proposal.
  • The offer tops Alkermes' prior up-to-$20-per-share deal and starts a five-day response window.
  • Lumryz sales growth underscores AVDL's potential as shareholders weigh competing bids.

Avadel Pharmaceuticals (AVDL - Free Report) recently announced that its board of directors has decided that Lundbeck’s unsolicited offer to buy the latter made on Nov. 13, 2025, is a “Company Superior Proposal” based on the terms of the current agreement with Alkermes (ALKS - Free Report) .

More on AVDL's Latest Offer From Lundbeck

Denmark-based H. Lundbeck A/S made an unsolicited offer to acquire Ireland-based Avadel for up to $23.00 per share, valuing it at about $2.4 billion. The bid reflects a roughly 29% premium to Avadel’s closing price on Oct. 21, 2025, the last trading day before the Alkermes deal was announced.

Last month, Alkermes announced a definitive agreement to acquire Avadel in a deal valued at up to $20.00 per share in cash, representing a total transaction value of around $2.1 billion.

Year to date, shares of Avadel have soared 119% compared with the industry’s rise of 6.4%.

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Lundbeck is looking to buy Avadel for up to $23.00 per share, including $21.00 in cash plus a non-transferable contingent value right that could pay an extra $1.00 if Lumryz and valiloxybate reach $450 million in annual net sales in the United States by 2027 and another $1.00 if they reach $700 million by 2030.

The deal is subject to customary closing conditions, including approval from Avadel shareholders and regulators.

Avadel’s lead commercial product Lumryz is approved as the first and only once-at-bedtime oxybate for extended-release oral suspension for the treatment of cataplexy or excessive daytime sleepiness in patients aged seven years and older with narcolepsy.

As of Sept. 30, 2025, around 3,400 patients were on Lumryz therapy. In the first nine months of 2025, Lumryz generated sales worth $198.1 million, reflecting an increase of almost 67% on a year-over-year basis.

AVDL's Recent Development With ALKS

Following the unsolicited acquisition proposal from Lundbeck, Avadel has informed Alkermes that it considers the former’s offer to be a Company Superior Proposal. This notice activates a five-business-day window in which Alkermes can, if it chooses, negotiate with Avadel to revise the acquisition proposal so that Lundbeck’s bid would no longer be deemed superior.

At present, the agreement with Alkermes remains active and Avadel’s board has not withdrawn its support for the Alkermes deal.

However, once the five business days are over, Avadel, with advice from the financial and legal teams and after considering any changes Alkermes proposes, still determines that Lundbeck’s offer is superior and that failing to act would breach the fiduciary responsibilities, it may terminate the agreement with ALKS.

It can be inferred that presently, Lundbeck’s offer to buy Avadel outbids that of Alkermes.

AVDL's Zacks Rank & Stocks to Consider

Avadel currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the biotech sector are CorMedix (CRMD - Free Report) and Castle Biosciences (CSTL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, estimates for CorMedix’s 2025 earnings per share have increased from $1.52 to $2.90. Earnings per share estimates for 2026 have moved up from $2.09 to $2.72 during the same period. CRMD stock has surged 23.2% year to date.

CorMedix’s earnings beat estimates in each of the trailing four quarters, with an average surprise of 27.04%.

In the past 60 days, estimates for Castle Biosciences’ 2025 loss per share have narrowed from 65 cents to 23 cents. Loss per share estimates for 2026 have narrowed from $2.10 to $1.42 during the same period. CSTL stock has rallied 27.4% year to date.

Castle Biosciences’ earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with an average surprise of 66.11%.

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