Alkermes plc completed its acquisition of Avadel Pharmaceuticals, a commercial-stage biopharmaceutical firm, through an Irish High Court-sanctioned scheme of arrangement under Ireland’s Companies Act 2014. The Dublin-based company announced the closure Thursday, adding Lumryz, an FDA-approved extended-release oral suspension of sodium oxybate, to its lineup.

Lumryz treats cataplexy or excessive daytime sleepiness in narcolepsy patients aged seven and older. The purchase also includes valiloxybate, Avadel’s phase 1 candidate for once-at-bedtime oxybate therapy without salt. Alkermes gains Avadel’s sales team, experienced in hypersomnolence disorders, along with its research and commercial setup.

“With the close of this acquisition, Alkermes achieved an important milestone in the continued advancement of our strategy,” said Richard Pops, chief executive officer of Alkermes. He noted the timing aligns with plans to start a phase 3 trial for alixorexton in narcolepsy this quarter. Pops highlighted Avadel’s infrastructure and team as key boosts to Alkermes’ capabilities in sleep medicine.

The deal, valued at roughly $2.3 billion, was funded with $775 million in cash from Alkermes’ balance sheet and $1.525 billion in term loans due in 2031. Officials expect to repay the debt rapidly using business cash flows. Analysts view the move as accretive to earnings starting in 2026.

Alkermes, which focuses on neuroscience and oncology, now taps Avadel’s expertise in rare sleep disorders. The acquisition builds on Alkermes’ existing sales network while adding specialized operations. Avadel had established itself as an innovator in sleep medicine, targeting unmet patient needs with products like Lumryz.

This step accelerates Alkermes’ push into central disorders of hypersomnolence. The company’s late-stage pipeline stands to benefit from Avadel’s platform. Executives emphasized the strong balance sheet supporting the transaction and long-term shareholder value.

Shares of Alkermes traded higher in Nasdaq sessions following the announcement. The merger integrates two firms with complementary strengths: Alkermes’ manufacturing prowess and Avadel’s market presence in narcolepsy treatments.