Eli Lilly (NYSE:LLY) to acquire Adverum Biotechnologies (NASDAQ:ADVM), including its lead product candidate, Ixo-vec, it said on Friday.
Under the merger agreement, Lilly will launch a tender offer to buy all outstanding Adverum shares for $3.56 in cash per share at closing, plus a contingent value right worth up to an additional $8.91 per share if certain milestones are met—bringing the total potential value to $12.47 per share.
The acquisition aligns Lilly’s genetic medicine capabilities with the opportunity to expand gene therapy’s potential to alleviate the burden of age-related diseases.
Adverum (NASDAQ:ADVM) is developing a pipeline of intravitreal single-administration gene therapies with the aspiration of developing functional cures to restore vision and prevent blindness.
Its lead product candidate, Ixo-vec, is an intravitreal gene therapy being developed for the treatment of wet age-related macular degeneration (wAMD).
The transaction is expected to close in the fourth quarter of 2025, subject to satisfaction of the closing conditions.
If the tender offer successfully closes, then Lilly (NYSE:LLY) would acquire any shares of Adverum that are not tendered in the tender offer through a second-step merger for the same consideration as is paid in the tender offer.