Eli Lilly Plans $472 Million Acquisition of Adverum Biotechnologies

Eli Lilly is set to acquire Adverum Biotechnologies in a deal worth up to $12.47 per share, with an immediate cash payment of $3.56 per share and potential contingent value rights (CVRs) offering up to $8.91 more per share based on the success of Adverum’s gene therapy candidate, Ixo-vec. This deal reflects a nearly 15% discount on Adverum’s recent stock price and ties most of its value to future regulatory approval and commercial sales milestones, underscoring the high risk and reward nature of gene therapy investments. Adverum has faced challenges, including share price declines after safety concerns in trials and financial losses, with limited cash reserves threatening its operational runway. The acquisition highlights Eli Lilly's strategic commitment to expanding its gene therapy portfolio amid a maturing biotech sector where late-stage clinical success and commercialization are critical. Adverum’s CEO expressed optimism about joining Lilly to accelerate delivering transformative therapies for vision preservation. The transaction signals big pharma's willingness to invest in gene therapy innovation, balancing immediate cash returns with long-term potential gains.