1. Lundbeck proposed $23 per share for Avadel Pharmaceuticals. 2. Avadel's board considers Lundbeck's offer could result in a superior proposal. 3. Alkermes agreed to acquire Avadel for $20 per share previously. 4. Avadel shares surged 20.22% following news, reaching a 52-week high.
The competitive proposal from Lundbeck creates uncertainty for Alkermes' acquisition, which may devalue ALKS. Historical instances show bidding wars in pharma can lead to volatility in stock prices.
The announcement impacts investor sentiment toward ALKS directly as it competes for Avadel. The evolving dynamics in the proposed acquisition and its implications are likely to sway ALKS stock performance.
The immediate uncertainty over Avadel's acquisition creates short-term pressure on ALKS. Similar situations in the past have seen rapid fluctuations post-announcement until resolution.