Lilly Expands into Gene Therapy with Adverum Acquisition

Eli Lilly ($LLY) said Friday it will acquire Adverum Biotechnologies ($ADVM), a clinical-stage biotech developing gene therapies for eye diseases, including its lead asset Ixo-vec for wet age-related macular degeneration (wAMD).

Deal Terms and Structure

Under the merger agreement:

Lilly will launch a tender offer to purchase all outstanding Adverum shares for $3.56 in cash per share at closing.
Shareholders will also receive a contingent value right (CVR) worth up to an additional $8.91 per share if certain development and regulatory milestones are achieved.
The deal’s total potential value reaches $12.47 per share, representing a significant premium for Adverum investors.

The transaction is expected to close in Q4 2025, pending regulatory and shareholder approvals.

Strategic Rationale

Lilly stated that the acquisition aligns with its genetic medicine strategy and expands its ability to develop and commercialize gene therapies targeting age-related and degenerative diseases.

“This transaction reflects our commitment to advancing genetic medicine and leveraging novel platforms to address significant unmet medical needs,” Lilly said in a statement.

The addition of Ixo-vec complements Lilly’s existing ophthalmology and genetic-medicine programs, providing a potential first-in-class intravitreal gene therapy for wet AMD—a leading cause of vision loss globally.

About Adverum and Ixo-vec

Adverum Biotechnologies focuses on intravitreal single-administration gene therapies aimed at providing functional cures for ocular diseases.

Ixo-vec delivers a single dose designed to restore vision and reduce treatment burden for patients with wAMD.
The therapy could eliminate the need for frequent anti-VEGF injections, a key limitation of current treatment options.

Next Steps

If the tender offer is successful, Lilly will complete a second-step merger to acquire any remaining Adverum shares for the same consideration. The acquisition is expected to close by late 2025.