Eli Lilly Acquires Adverum Biotechnologies, Expanding Gene Therapy Portfolio

Eli Lilly and Company has announced its acquisition of Adverum Biotechnologies in a deal valued at up to $261.7 million, marking another significant step in Lilly's expansion into the gene therapy space. The acquisition centers around Adverum's lead program, Ixo-vec, a potential one-time gene therapy for wet age-related macular degeneration (wAMD) currently in Phase III clinical trials.

Deal Structure and Financial Details

Lilly will pay $3.56 per share in cash for Adverum, totaling an upfront payment of $74.7 million. The deal includes a contingent value right (CVR) worth up to $8.91 per share, based on two key milestones:

1. $1.78 per CVR upon U.S. approval of Ixo-vec within seven years of the deal's closing
2. Up to $7.13 per CVR if annual worldwide net sales exceed $1 billion within ten years of closing

The total potential value of $261.7 million represents a significant premium over Adverum's recent market capitalization, despite the upfront offer being slightly below the company's previous closing share price.

Strategic Implications for Lilly and Adverum

This acquisition aligns with Lilly's growing interest in genetic medicine and ophthalmology. Andrew Adams, Lilly's group vice president of molecule discovery, emphasized the potential of Ixo-vec to "transform wAMD treatment from a paradigm of chronic care with repeated intravitreal injections to a convenient one-time therapy."

For Adverum, the deal provides a lifeline as the company faced dwindling cash reserves. CEO Laurent Fischer stated, "We share Lilly's commitment to healthy aging and genetic medicines innovation. Their scientific depth and global reach offer the opportunity to accelerate our vision to deliver a transformative one-and-done therapy."

Ixo-vec: A Promising Gene Therapy for wAMD

Ixo-vec is an intravitreal gene therapy currently in Phase III development for wet age-related macular degeneration. Key features include:

• Potential to be a one-time treatment for wAMD
• Intravitreal administration, offering convenience over current therapies
• Fast Track and Regenerative Medicine Advanced Therapy (RMAT) designations from the FDA

The ongoing Phase III ARTEMIS trial, initiated in May 2025, represents the first registrational trial of an intravitreal gene therapy for wAMD. This study aims to demonstrate Ixo-vec's efficacy in preserving and potentially restoring vision in affected patients.