A competing offer from Lundbeck has disrupted Alkermes’ earlier agreement to buy Avadel Pharmaceuticals, triggering a potential bidding contest for Avadel’s sleep disorder assets. Lundbeck’s unsolicited cash plus contingent value structure topped Alkermes’ proposal and forced Avadel’s board to re‑evaluate options while retaining its prior recommendation. Wall Street flagged meaningful strategic and financial risks for Alkermes should it try to match Lundbeck’s terms. The rival bid centers on Lumryz and other sleep‑focused therapeutics that Alkermes had targeted for market expansion. Analysts cite deal mechanics — upfront cash, contingent value rights tied to sales milestones — as central to investor evaluation. The episode highlights continued consolidation and aggressive M&A in specialty CNS and sleep franchises as companies chase near‑term commercial scale.