Alkermes responds to competing offer for Avadel from Lundbeck

Alkermes plc (NASDAQ: ALKS) said it is reviewing options with advisors after Avadel Pharmaceuticals plc announced a possible acquisition offer from H. Lundbeck A/S.

The Dublin-based pharmaceutical company noted that under its existing transaction agreement with Avadel, certain conditions must be met before Avadel can terminate their deal to pursue the Lundbeck offer. Avadel must determine that the Lundbeck proposal constitutes a superior offer and that rejecting it would be inconsistent with fiduciary duties.

The transaction agreement requires Avadel to provide Alkermes with at least five business days written notice before taking action to terminate their agreement. During this period, Avadel must negotiate in good faith with Alkermes regarding any proposed amendments to their existing deal.

Avadel cannot make a board recommendation change or enter a definitive agreement with Lundbeck until these negotiation requirements are satisfied, according to the statement.

Alkermes said it will make further announcements when appropriate. The company's board is working with J.P. Morgan Securities as financial advisor on the matter.

The response comes as pharmaceutical companies continue consolidation activities in the sector. Alkermes develops treatments for central nervous system disorders and oncology.

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