Eli Lilly Acquires Adverum Biotechnologies, Expanding Gene Therapy Portfolio

Eli Lilly and Company has announced the acquisition of Adverum Biotechnologies in a deal valued at up to $261.7 million, marking a significant expansion of Lilly's gene therapy pipeline. The acquisition centers on 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, amounting to 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 Ixo-vec exceeds $1 billion in annual worldwide net sales within ten years of closing.

The transaction, expected to close before the end of 2025, comes at a critical time for Adverum, which had warned that its remaining funds would only finance operations through October 2025.

Ixo-vec: A Potential Game-Changer in wAMD Treatment

Ixo-vec is an intravitreal gene therapy designed to be a one-time treatment for wet age-related macular degeneration. The therapy aims to transform wAMD treatment from chronic care with repeated injections to a single, convenient administration.

Andrew Adams, Ph.D., Lilly 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."

The ongoing Phase III ARTEMIS trial, initiated in May 2025, represents the first-ever registrational trial of an intravitreal gene therapy for wAMD. Ixo-vec has received Fast Track and Regenerative Medicine Advanced Therapy (RMAT) designations from the FDA.

Lilly's Expanding Genetic Medicine Portfolio

This acquisition further solidifies Lilly's commitment to genetic medicines, following several recent strategic moves in the field:

• 2020: Acquisition of Prevail Therapeutics (Parkinson's disease gene therapy)
• 2022: $700 million investment in a Boston-based research institute for RNA and DNA-based technologies
• 2022: Acquisition of Akouos (gene therapies for hearing loss)
• 2023: Acquisition of Sigilon Therapeutics (cell therapies for diabetes)
• 2025: Acquisition of Verve Therapeutics (cardiovascular disease treatments)

Laurent Fischer, M.D., Adverum's CEO, expressed enthusiasm about joining Lilly, citing the company's "proven track record in the discovery, development, and commercialization of innovative medicines for chronic and age-related conditions."

As the pharmaceutical landscape continues to evolve, Lilly's latest acquisition underscores the growing importance of gene therapy in addressing complex, age-related disorders. The success of Ixo-vec could potentially reshape the treatment paradigm for millions of patients living with wet AMD, a market projected to reach nearly $18 billion by 2030.