New York, Feb 18, 2026, 10:03 EST — Regular session
- A filing showed Two Seas Capital held no stake in Avadel as of Dec. 31.
- Avadel ended Feb. 11 at $21.64, its last close before trading was halted.
- Attention turns to cash settlement next, with eyes also on the non-transferable CVR and Alkermes’ Feb. 25 outlook.
Two Seas Capital, as of Dec. 31, was out of Avadel Pharmaceuticals plc entirely, according to a Schedule 13G/A filed Feb. 17.
Trading in Avadel shares stopped after the after-hours session on Feb. 11, following a halt tied to its pending merger with Alkermes, according to Nasdaq. The pause continued through Feb. 12, with the stock suspended as of Feb. 13, the exchange’s notice showed.
Avadel ended Feb. 11 at $21.64, historical pricing data show. That final close—about 64 cents over the $21-per-share cash offer in the merger—gave a ballpark figure for how the market valued the deal’s contingent value right.
Avadel confirmed its acquisition took effect Feb. 12 through an Irish High Court-approved scheme of arrangement—a standard route in Ireland for takeovers. Investors holding shares as of late Feb. 11 are set to receive $21.00 in cash plus a non-transferable contingent value right (CVR) per share. That CVR could mean another $1.50 payout if a certain milestone comes through. The company said it’s moving to delist from Nasdaq, end U.S. reporting, and has also axed its at-the-market share sale plan. Roughly $60.2 million was prepaid to close out a royalty deal linked to LUMRYZ, according to the filing.
The CVR kicks in only if a specific milestone gets hit by Dec. 31, 2028, according to the proxy materials. What’s required: FDA approval of LUMRYZ for idiopathic hypersomnia—a chronic sleep disorder causing excessive daytime sleepiness—and a related legal development tied to Jazz Pharmaceuticals, the filing states.
The SEC posted a notice of effectiveness indicating that some post-effective amendments related to Avadel’s old shelf registration took effect on Feb. 13. It’s part of the standard paperwork after a cash-out merger and delisting.
Alkermes CEO Richard Pops called the deal’s closing “an important milestone” as the company steps into sleep medicine. To fund the acquisition, Alkermes drew on roughly $750 million in cash and took on $1.525 billion in term loans that mature in 2031. As for forecasts, management plans to outline 2026 financial targets on Feb. 25, alongside results for the quarter and full year ended Dec. 31, 2025. SEC
Right now, traders aren’t watching the tape — there isn’t one. It’s all back office tasks: hammering out entitlement, sorting the timing for the cash payout, and getting that CVR registered with brokers and custodians.
The real catch is tucked inside the CVR: it’s non-transferable and could expire worthless if the milestone doesn’t get hit, meaning holders would just be left with the $21 in cash. The clock also runs until the end of 2028, and, as always, there are regulatory and legal hurdles scattered throughout.
Avadel’s off the board now, so the market’s looking to Alkermes and watching for cues on LUMRYZ’s potential outside narcolepsy. The question: can the company keep pace and avoid ceding ground to established players in sleep medicine?
