Oct. 24 at 2:04 PM
Adverum Biotechnologies shares rose after Eli Lilly announced its acquisition of the clinical-stage gene therapy company. The deal values Adverum at
$3.56 per share in cash, plus a contingent value right (CVR) offering up to
$8.91MORE per share based on milestones, with a total potential value of
$12.47 per share. Despite the surge, Adverum's stock closed at
$4.90, below the potential maximum value.
Lilly will gain control of Adverum's lead product, Ixo-vec, a Phase 3 gene therapy for age-related wet macular degeneration (wAMD), aiming to replace repeated injections with a single dose. CVR payments are tied to U.S. approval and sales milestones. Lilly will also provide up to
$65 million in funding for Adverum's ongoing trials before the deal closes in Q4 2025. The acquisition supports Lilly's strategy to expand its genetic medicine capabilities in age-related diseases.
$ADVM $LLY