We recently published Lackluster Market? Not for These 10 Soaring Stocks. Avadel Pharmaceuticals plc (NASDAQ:AVDL) is one of the best-performing stocks on Friday.
Avadel extended its winning streak to a 5th straight day on Friday to hit a new 10-year high as investor sentiment was boosted by its receipt of a new acquisition proposal which appeared to be superior to Alkermes PLC’s earlier bid.
At intra-day trading, the stock jumped to its highest price of $23.57 before ending the day just up by 22.45 percent at $23.56 apiece.
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In a statement, Avadel Pharmaceuticals plc (NASDAQ:AVDL) said it received an unsolicited proposal from H Lundbeck A/S to acquire its shares at a price of $23 apiece, comprising of $21 in cash and non-transferrable contingent value rights (CVR) worth $2 upon the achievement of two annual sales milestones for Lumryz and valiloxybate.
According to Avadel Pharmaceuticals plc (NASDAQ:AVDL), its board of directors deemed that Lundbeck’s proposal would be superior to Alkermes, despite the two companies already signing a definitive agreement for a merger.
Under Alkermes’ offer, it would buy the shares at a price of $20 apiece, consisting of $18.50 per share, and a CVR of $1.50 contingent upon final approval of the Food and Drug Administration of Lumryz.
Avadel and Alkermes’ agreement allows for the former to talk and share information with another prospective buyer, but cannot break the agreement it signed with the latter.
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Disclosure: None. This article is originally published at Insider Monkey.
