Avadel Pharmaceuticals (AVDL) announced on Friday that Danish drugmaker Lundbeck (OTCPK:HLBBF) submitted an unsolicited proposal to acquire the company for up to $23 per share, compared to up to $20.00 per share offered by Irish biotech Alkermes (ALKS) in an earlier takeover bid.
Shares of the sleep drug developer added ~17% in the premarket as Wall Street reacted to the latest bidding war among drugmakers.
Lundbeck’s (OTCPK:HLUBF) (OTCPK:HLBBY) offer includes $21.00 in cash per ordinary share at the closing of the transaction and a non-transferable contingent value right (CVR) that entitles Avadel (AVDL) shareholders to receive up to $2 per share.
The additional payments linked to the CVR depend on the company’s ability to achieve certain sales targets related to its sleep drugs, Lumryz and valiloxybate.
In October, Alkermes (ALKS) agreed to acquire Avadel (AVDL) in an all-cash deal worth $2.1B. The transaction included $18.50 per share upfront and a CVR, which allowed AVDL investors to receive an additional $1.50 payout subject to the FDA nod for Lumryz for adults with idiopathic hypersomnia in 2028.
Avadel (AVDL) said its board has yet to determine if Lundbeck’s offer is superior and has not changed its stand in support of Alkermes’ (ALKS) bid.
“Avadel’s Board has not determined that the Lundbeck Proposal in fact constitutes a Company Superior Proposal under the existing transaction agreement with Alkermes and has not changed its recommendation in support of the Alkermes acquisition at this time,” the company said.
The announcement marked the latest bidding war in the biotech world, days after Pfizer (PFE) outbid Novo Nordisk (NVO) to clinch a deal worth up to $10B last week to acquire Metsera (MTSR), a developer of weight-loss drugs, on Thursday.