Alkermes PLC has raised its offer to acquire Avadel Pharmaceuticals PLC to as much as $22.50 a share, valuing the deal at about $2.37 billion. The revised terms include $21 in cash and a contingent value right worth up to $1.50 a share, tied to U.S. Food and Drug Administration approval of Avadel’s LUMRYZ treatment for idiopathic hypersomnia by the end of 2028.

The companies signed an amended agreement on Nov. 18, following Avadel’s disclosure last week of an unsolicited bid from Denmark’s H. Lundbeck A/S. Avadel’s board initially deemed Lundbeck’s proposal superior but reversed course after reviewing Alkermes’ revised offer, citing stronger CVR terms and a higher likelihood of payout.

Both boards have approved the amended deal, which is expected to close in the first quarter of 2026, subject to customary conditions. The cash component of Alkermes’ offer matches Lundbeck’s bid, but Avadel said the CVR in Alkermes’ proposal offers better prospects than Lundbeck’s, which was considered unlikely to be achieved.

The move underscores intensifying competition in the sleep-disorder treatment market, where LUMRYZ is seen as a key growth driver.

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