Avadel Sparks Bidding War: Why Lundbeck’s Offer Is Shaking Things Up!

Avadel Pharmaceuticals is suddenly at the center of a high-stakes bidding war, with strategic interest intensifying as its once-nightly sleep therapy, LUMRYZ, continues to scale commercially. On November 14, Danish drugmaker Lundbeck submitted an unsolicited offer to acquire Avadel for up to $23 per share—topping an earlier $20-per-share bid from Alkermes made in October. The structure of Lundbeck’s offer includes $21.00 in cash and a $2.00 per share non-transferable contingent value right (CVR) tied to future sales milestones for LUMRYZ and valiloxybate. By contrast, the original Alkermes bid involved $18.50 in cash and a $1.50 CVR payout contingent on FDA approval of LUMRYZ for idiopathic hypersomnia (IH) in 2028. Avadel’s board has not yet shifted its recommendation in favor of Lundbeck, signaling that a deal is far from done. The backdrop for this takeover drama includes Avadel’s recent profitability inflection, strong revenue guidance, and emerging legal tailwinds against its rival Jazz Pharmaceuticals—all factors potentially driving up its strategic value.