Lundbeck submitted an unsolicited higher cash offer for Avadel Pharmaceuticals, challenging a prior agreement between Avadel and Alkermes and igniting a bidding war over Lumryz, a marketed narcolepsy drug with optional expansion into idiopathic hypersomnia. Lundbeck’s proposal ups the purchase price and adds contingent value rights tied to sales milestones. Avadel’s board said it is evaluating the new proposal but has not yet withdrawn its recommendation for the Alkermes transaction. Analysts flagged the competitiveness of the process and the potential for Alkermes either to sweeten its bid or walk away, leaving Avadel’s shareholders with a choice between near‑term cash and potential upside tied to product performance. The situation illustrates active consolidation in small‑cap specialty drugmakers and the strategic value of marketed assets with near‑term revenue upside. For acquirers, securing Lumryz and related assets is a fast route to expanding sleep disorder franchises.