Avadel (NASDAQ: AVDL) Surges 0.52% on Merger, CVR Tied to FDA Approval

Avadel Pharmaceuticals (NASDAQ: AVDL) reached its highest level so far this month on Nov. 14, with an intraday gain of 0.52%, extending a four-day winning streak that lifted the stock 2.94% since Nov. 10.

The rally follows the announcement of a proposed $18.50-per-share merger with Alkermes plc, which includes a contingent value right (CVR) offering an additional $1.50 per share if Avadel’s LUMRYZ™ receives FDA approval for idiopathic hypersomnia by Dec. 31, 2028. The CVR structure ties shareholder value to the drug’s regulatory success, creating both upside potential and uncertainty. Meanwhile, a class action inquiry by Monteverde & Associates PC is scrutinizing whether Avadel adequately disclosed risks tied to the merger, including the CVR’s conditional nature and LUMRYZ™’s approval timeline.

Market participants are weighing the merger’s immediate premium against legal and regulatory risks. The lawsuit could delay or reshape the deal, potentially impacting investor confidence. While the CVR highlights Alkermes’ faith in LUMRYZ™, any setbacks in the drug’s development or delays in FDA decisions may weigh on AVDL’s valuation. The stock’s volatility reflects broader tensions between merger-driven optimism and concerns over transparency, with traders monitoring regulatory updates and legal developments for directional cues.