Lilly to Acquire Adverum Biotechnologies

Core Insights - Eli Lilly and Company has announced a definitive agreement to acquire Adverum Biotechnologies, Inc., focusing on the gene therapy Ixo-vec for treating wet age-related macular degeneration (wAMD) [1][2][4] Company Overview - Eli Lilly is a long-established pharmaceutical company with a focus on innovative medicines for chronic and age-related conditions, leveraging biotechnology and genetic medicine [10] - Adverum Biotechnologies is a clinical-stage company developing gene therapies aimed at restoring vision and preventing blindness, particularly through its lead product candidate, Ixo-vec [11] Product Details - Ixo-vec is a Phase 3 gene therapy designed for a one-time treatment of wAMD, aiming to deliver stable intraocular aflibercept levels and reduce the burden of current chronic therapies [2][12] - The therapy has received multiple designations from regulatory agencies, including Fast Track and RMAT from the FDA, and PRIME from the EMA, indicating its potential significance in treating wAMD [3][13] Acquisition Terms - Under the merger agreement, Lilly will offer $3.56 per share in cash for Adverum's common stock, plus a contingent value right (CVR) that could provide up to an additional $8.91 per share based on specific milestones [4][5] - The CVR includes payments contingent on U.S. approval of Ixo-vec and achieving annual worldwide net sales exceeding $1 billion [5][6] Financial Support - Adverum will receive a Promissory Note from Lilly for up to $65 million to support ongoing clinical trials for Ixo-vec, with conditions tied to the acquisition's closing [7][8] Strategic Rationale - The acquisition aligns with Lilly's strategy to enhance its genetic medicine capabilities and expand the potential of gene therapy in addressing age-related diseases [1][4] - Adverum's board unanimously approved the merger after evaluating various strategic alternatives, indicating confidence in the partnership's potential benefits [8]