Eli Lilly Acquires Adverum Biotechnologies in $261 Million Gene Therapy Deal
Eli Lilly (LLY) has announced its acquisition of gene therapy developer Adverum Biotechnologies (ADVM) for $261.7 million, marking a strategic expansion into the eye care market. The deal grants Eli Lilly access to Adverum's experimental treatment Ixo-vec, currently in late-stage trials for wet age-related macular degeneration.
The transaction includes an upfront payment of $3.56 per share, totaling $74.7 million, with potential milestone payments of up to $8.91 per share contingent on regulatory approval and commercial success. Adverum shareholders could receive up to $12.47 per share if all targets are met.
Adverum's stock ROSE nearly 3% following the announcement, closing at $4.29. The acquisition provides crucial funding for Adverum as its cash reserves diminish, while bolstering Eli Lilly's pipeline in the growing gene therapy sector.
