Ireland-based Alkermes has completed its acquisition of fellow Irish biopharmaceutical company Avadel Pharmaceuticals in a $2.3 billion (€1.94 billion) cash-and-debt transaction, adding FDA-approved narcolepsy treatment LUMRYZ to its commercial portfolio, according to ALCHEMPro.

The transaction was completed pursuant to an Irish High Court sanctioned scheme of arrangement under Chapter 1 of Part 9 of the Companies Act 2014 of Ireland. LUMRYZ (sodium oxybate) for extended-release oral suspension is approved for the treatment of cataplexy or excessive daytime sleepiness in patients seven years of age and older with narcolepsy.

Richard Pops, chief executive of Alkermes, said: "With the close of this acquisition, Alkermes achieved an important milestone in the continued advancement of our strategy, accelerating our entry into the commercial sleep medicine market at a pivotal moment as we work to initiate the planned phase 3 programme for alixorexton in narcolepsy this quarter."

The transaction is expected to be accretive in 2026. With an estimated population of more than 50,000 oxybate-eligible narcolepsy patients in the United States, LUMRYZ has significant opportunity for growth ahead. The acquisition also includes valiloxybate, Avadel's in-licensed salt-free, once-at-bedtime oxybate candidate in phase 1 clinical development.

To finance the acquisition, Alkermes used approximately $775 million (€654 million) of cash from its balance sheet and borrowed $1.525 billion (€1.29 billion) in term loans due in 2031. The company expects to pay down the debt quickly with cash flows from the business.

Read the complete report on Alkermes' strategic expansion into the sleep medicine sector.