Lundbeck submitted an unsolicited, higher offer for Avadel Pharmaceuticals, topping Alkermes’ earlier $2.1 billion agreement and setting off a bidding standoff for the Dublin‑based sleep‑disorder specialist. Lundbeck’s cash‑plus‑CVR structure increases the potential deal value, forcing Avadel’s board and Alkermes to reassess deal terms amid heated investor scrutiny. The target asset, Lumryz, is a marketed narcolepsy drug with expansion potential into idiopathic hypersomnia; the competing bids hinge on assumptions about future approvals and peak sales. Analysts noted Lundbeck’s proposal raises strategic and financing risks for Alkermes, which may be unable or unwilling to match the higher, contingent offer without straining balance‑sheet capacity. The contest highlights how differentiated CVR structures are being used to bridge valuation gaps in sleepy but high‑upside specialty markets, and it underscores how mid‑cap M&A battles can quickly reshape strategic roadmaps for both acquirers and targets.