Avadel Pharmaceuticals and Alkermes Reach Acquisition Agreement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 10 2026
0mins
Should l Buy ALKS?
Avadel Pharmaceuticals (AVDL) announced that the Irish High Court has sanctioned, without modification, the scheme of arrangement between Avadel and its shareholders under Chapter 1 of Part 9 of the Irish Companies Act 2014 pursuant to which Alkermes (ALKS) will acquire the entire issued and to be issued ordinary share capital of Avadel. Completion of the proposed transaction remains subject to the delivery to the Registrar of Companies of a copy of the Court Order sanctioning the Scheme. Assuming that a copy of the Court Order is processed and made available to Avadel by no later than February 11, the Court Order is expected to be delivered to the Registrar of Companies on February 12 and, accordingly, the Scheme is expected to take effect on February 12. Accordingly, February 11 is expected to be the last date on which trading of Avadel Shares on Nasdaq will occur. It is expected that Avadel will request Nasdaq halt trading of the Avadel Shares effective as of 8.00 p.m. on February 11.
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Analyst Views on ALKS
Wall Street analysts forecast ALKS stock price to rise
12 Analyst Rating
10 Buy
2 Hold
0 Sell
Strong Buy
Current: 27.770
Low
37.00
Averages
46.20
High
58.00
Current: 27.770
Low
37.00
Averages
46.20
High
58.00
About ALKS
Alkermes plc is Ireland-based biopharmaceutical company that seeks to develop medicines in the field of neuroscience. The Company has a portfolio of commercial products for the treatment of alcohol dependence, opioid dependence, schizophrenia and bipolar I disorder and a pipeline of clinical and preclinical candidates in development for neurological disorders. It focuses on commercial products, such as LYBALVI, ARISTADA/ARISTADA INITIO and VIVITROL, and advancing the development of pipeline programs focused on neurological disorders. LYBALVI is a once-daily, oral atypical antipsychotic drug for the treatment of adults with schizophrenia and for the treatment of adults with bipolar I disorder, as a maintenance monotherapy or for the acute treatment of manic or mixed episodes, as monotherapy or an adjunct to lithium or valproate. ARISTADA is an extended-release intramuscular injectable suspension for the treatment of schizophrenia. It has a manufacturing facility in Wilmington, Ohio.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Alkermes Launches Mental Health Nursing Grant Program
- Grant Program Launch: Alkermes plc announced the opening of applications for the Alkermes Pathways APN Research Awards™ program starting March 16, 2026, designed to support research by psychiatric-mental health nurse practitioners with grants up to $10,000, reflecting the company's ongoing commitment to mental health.
- Eligibility Criteria: Applicants must be licensed psychiatric-mental health nurse practitioners engaged in clinical, academic, or community health settings, holding a doctoral degree or having a qualified co-investigator, ensuring the professionalism and effectiveness of the research.
- Review Process: All applications will be reviewed by an independent committee composed of prominent researchers in the field, ensuring the scientific rigor and clinical relevance of funded projects, thereby enhancing the quality of patient care.
- Industry Impact: This program not only provides significant research opportunities for nurse practitioners but also aims to advance clinical practices related to serious mental illnesses, such as schizophrenia and bipolar I disorder, further solidifying Alkermes' leadership in the mental health sector.
See More
Alkermes 2026 Financial Outlook and Acquisition Progress
- Revenue Growth Expectations: Alkermes anticipates total revenues exceeding $1.73 billion in 2026, with adjusted EBITDA projected between $370 million and $410 million, indicating a strategic decision to diversify income following the Avadel acquisition.
- Strategic Significance of Avadel Acquisition: CEO Richard F. Pops emphasized that the acquisition not only adds a new revenue stream but also accelerates Alkermes' entry into the commercial sleep medicine market, particularly through LUMRYZ and the upcoming launch of alixorexton.
- Strong Product Sales Performance: In 2025, Alkermes reported proprietary product sales of $1.2 billion, a 9% year-over-year increase, with LUMRYZ contributing approximately $279 million in net sales, expected to continue growing in 2026, further solidifying market position.
- Financial Health Status: The company ended 2025 with $1.3 billion in cash and investments, maintaining good financial flexibility to support future growth despite utilizing $775 million for the Avadel acquisition and taking on $1.525 billion in long-term loans.
See More
Alkermes Reports Decline in Q4 Earnings
- Earnings Decline: Alkermes plc reported a fourth-quarter net income of $49.34 million, translating to $0.29 per share, which represents a significant drop from last year's $146.50 million and $0.88 per share, indicating a marked decline in the company's profitability.
- Revenue Decrease: The company's revenue for the fourth quarter was $384.54 million, a 10.6% decrease from $429.98 million last year, reflecting weakened market demand and increased competition.
- Financial Performance Comparison: Alkermes' earnings per share fell by 66.0% compared to the same period last year, which not only impacts investor confidence but may also pressure the stock price and affect the company's future financing capabilities.
- Uncertain Market Outlook: With both earnings and revenue declining, Alkermes faces greater market challenges and may need to reassess its strategy to cope with industry changes and competitive pressures.
See More
Alkermes Reports 2025 Financial Results and 2026 Outlook
- Financial Performance Overview: Alkermes plc reported its financial results for the quarter and year ended December 31, 2025, indicating continued growth expectations for 2026, although specific figures were not disclosed, reflecting the company's stability and potential in the biopharmaceutical sector.
- Investor Call Arrangement: The company will host a conference call and webcast at 8:00 a.m. EST (1:00 p.m. GMT) to discuss financial results and future outlook, enhancing communication and transparency with investors.
- Product Portfolio and R&D: Alkermes focuses on neuroscience, with proprietary commercial products for alcohol and opioid dependence, and is developing late-stage clinical candidates for narcolepsy and other neurological disorders, demonstrating its commitment to innovative drug development.
- Global Business Presence: Headquartered in Ireland, Alkermes has a research and development center in Massachusetts and a manufacturing facility in Ohio, indicating its global business expansion and technical capabilities.
See More
Alkermes Q4 Earnings Report Analysis
- Earnings Performance: Alkermes reported a Q4 GAAP EPS of $0.29, missing expectations by $0.05, indicating pressure on profitability that could affect investor confidence.
- Revenue Decline: The company generated $384.5 million in revenue, a 10.6% year-over-year decline, although it beat market expectations by $3.01 million, yet the ongoing revenue drop poses challenges for future growth.
- 2026 Financial Outlook: Total revenue expectations for 2026 are set between $1.73 billion and $1.84 billion, below the market consensus of $1.83 billion, reflecting cautious sentiment regarding the company's future growth prospects.
- Cost and Expenditure: Projected R&D expenses for 2026 are between $445 million and $485 million, while SG&A expenses are expected to range from $890 million to $930 million, highlighting the company's strategic focus on cost control and R&D investment.
See More
Alkermes Set to Announce Q4 Earnings on February 25
- Earnings Announcement Date: Alkermes is set to release its Q4 earnings on February 25 before market open, with consensus EPS estimate at $0.45 and revenue at $381.49 million, reflecting an 11.3% year-over-year decline, which could directly impact the company's stock performance.
- Performance Expectation Analysis: Over the past year, Alkermes has beaten EPS estimates 50% of the time and revenue estimates 75% of the time, indicating a relative stability in managing market expectations, potentially boosting investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen two upward revisions and one downward, while revenue estimates experienced four upward revisions and two downward, suggesting a degree of volatility in market expectations regarding Alkermes' future performance, which may influence investor decisions.
- Industry Conference Participation: Alkermes presented at the 44th Annual J.P. Morgan Healthcare Conference, enhancing its visibility and influence within the industry, which may pave the way for future collaboration and investment opportunities.
See More
Alkermes Launches Mental Health Nursing Grant Program
- Grant Program Launch: Alkermes plc announced the opening of applications for the Alkermes Pathways APN Research Awards™ program starting March 16, 2026, designed to support research by psychiatric-mental health nurse practitioners with grants up to $10,000, reflecting the company's ongoing commitment to mental health.
- Eligibility Criteria: Applicants must be licensed psychiatric-mental health nurse practitioners engaged in clinical, academic, or community health settings, holding a doctoral degree or having a qualified co-investigator, ensuring the professionalism and effectiveness of the research.
- Review Process: All applications will be reviewed by an independent committee composed of prominent researchers in the field, ensuring the scientific rigor and clinical relevance of funded projects, thereby enhancing the quality of patient care.
- Industry Impact: This program not only provides significant research opportunities for nurse practitioners but also aims to advance clinical practices related to serious mental illnesses, such as schizophrenia and bipolar I disorder, further solidifying Alkermes' leadership in the mental health sector.
See More
Alkermes 2026 Financial Outlook and Acquisition Progress
- Revenue Growth Expectations: Alkermes anticipates total revenues exceeding $1.73 billion in 2026, with adjusted EBITDA projected between $370 million and $410 million, indicating a strategic decision to diversify income following the Avadel acquisition.
- Strategic Significance of Avadel Acquisition: CEO Richard F. Pops emphasized that the acquisition not only adds a new revenue stream but also accelerates Alkermes' entry into the commercial sleep medicine market, particularly through LUMRYZ and the upcoming launch of alixorexton.
- Strong Product Sales Performance: In 2025, Alkermes reported proprietary product sales of $1.2 billion, a 9% year-over-year increase, with LUMRYZ contributing approximately $279 million in net sales, expected to continue growing in 2026, further solidifying market position.
- Financial Health Status: The company ended 2025 with $1.3 billion in cash and investments, maintaining good financial flexibility to support future growth despite utilizing $775 million for the Avadel acquisition and taking on $1.525 billion in long-term loans.
See More
Alkermes Reports Decline in Q4 Earnings
- Earnings Decline: Alkermes plc reported a fourth-quarter net income of $49.34 million, translating to $0.29 per share, which represents a significant drop from last year's $146.50 million and $0.88 per share, indicating a marked decline in the company's profitability.
- Revenue Decrease: The company's revenue for the fourth quarter was $384.54 million, a 10.6% decrease from $429.98 million last year, reflecting weakened market demand and increased competition.
- Financial Performance Comparison: Alkermes' earnings per share fell by 66.0% compared to the same period last year, which not only impacts investor confidence but may also pressure the stock price and affect the company's future financing capabilities.
- Uncertain Market Outlook: With both earnings and revenue declining, Alkermes faces greater market challenges and may need to reassess its strategy to cope with industry changes and competitive pressures.
See More
Alkermes Reports 2025 Financial Results and 2026 Outlook
- Financial Performance Overview: Alkermes plc reported its financial results for the quarter and year ended December 31, 2025, indicating continued growth expectations for 2026, although specific figures were not disclosed, reflecting the company's stability and potential in the biopharmaceutical sector.
- Investor Call Arrangement: The company will host a conference call and webcast at 8:00 a.m. EST (1:00 p.m. GMT) to discuss financial results and future outlook, enhancing communication and transparency with investors.
- Product Portfolio and R&D: Alkermes focuses on neuroscience, with proprietary commercial products for alcohol and opioid dependence, and is developing late-stage clinical candidates for narcolepsy and other neurological disorders, demonstrating its commitment to innovative drug development.
- Global Business Presence: Headquartered in Ireland, Alkermes has a research and development center in Massachusetts and a manufacturing facility in Ohio, indicating its global business expansion and technical capabilities.
See More
Alkermes Q4 Earnings Report Analysis
- Earnings Performance: Alkermes reported a Q4 GAAP EPS of $0.29, missing expectations by $0.05, indicating pressure on profitability that could affect investor confidence.
- Revenue Decline: The company generated $384.5 million in revenue, a 10.6% year-over-year decline, although it beat market expectations by $3.01 million, yet the ongoing revenue drop poses challenges for future growth.
- 2026 Financial Outlook: Total revenue expectations for 2026 are set between $1.73 billion and $1.84 billion, below the market consensus of $1.83 billion, reflecting cautious sentiment regarding the company's future growth prospects.
- Cost and Expenditure: Projected R&D expenses for 2026 are between $445 million and $485 million, while SG&A expenses are expected to range from $890 million to $930 million, highlighting the company's strategic focus on cost control and R&D investment.
See More
Alkermes Set to Announce Q4 Earnings on February 25
- Earnings Announcement Date: Alkermes is set to release its Q4 earnings on February 25 before market open, with consensus EPS estimate at $0.45 and revenue at $381.49 million, reflecting an 11.3% year-over-year decline, which could directly impact the company's stock performance.
- Performance Expectation Analysis: Over the past year, Alkermes has beaten EPS estimates 50% of the time and revenue estimates 75% of the time, indicating a relative stability in managing market expectations, potentially boosting investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen two upward revisions and one downward, while revenue estimates experienced four upward revisions and two downward, suggesting a degree of volatility in market expectations regarding Alkermes' future performance, which may influence investor decisions.
- Industry Conference Participation: Alkermes presented at the 44th Annual J.P. Morgan Healthcare Conference, enhancing its visibility and influence within the industry, which may pave the way for future collaboration and investment opportunities.
See More
