Eli Lilly and Company has announced its definitive agreement to acquire Adverum Biotechnologies, a move poised to significantly impact the treatment landscape for wet age-related macular degeneration (wAMD). This acquisition, centered on Adverum's pioneering gene therapy candidate, Ixo-vec, underscores Lilly's commitment to innovation in ocular health. The deal, structured with both upfront cash and performance-based contingent value rights, reflects the substantial potential seen in Ixo-vec to offer a transformative, single-dose solution for a chronic condition currently requiring frequent injections.
The acquisition terms outline that Eli Lilly will initiate a tender offer for all outstanding shares of Adverum, with a total valuation reaching up to $12.47 per share. This comprises an immediate cash payment of $3.56 per share upon the transaction's close, supplemented by a non-transferable contingent value right (CVR) that could yield an additional $8.91 per share. These CVR payments are tied to specific future achievements: $1.78 per share upon Ixo-vec's U.S. regulatory approval within seven years post-acquisition, and a further $7.13 per share if the therapy achieves annual global sales exceeding $1 billion within a decade. Both companies anticipate the finalization of this significant merger by the fourth quarter of 2025.
Adverum Biotechnologies has been at the forefront of developing single-administration intravitreal gene therapies, aiming to provide enduring solutions for vision restoration and the prevention of blindness. Their flagship candidate, Ixo-vec, is specifically designed for the treatment of wet age-related macular degeneration, a severe and progressive retinal disorder affecting millions worldwide. This innovative gene therapy seeks to deliver sustained levels of aflibercept directly into the eye, thereby reducing the burdensome need for repeated anti-VEGF injections and potentially offering long-lasting improvements in visual outcomes for patients.
Ixo-vec is currently undergoing rigorous evaluation in the ARTEMIS Phase 3 clinical trial, which has successfully completed patient screening. The therapeutic candidate has garnered significant recognition from regulatory bodies globally, receiving Fast Track and Regenerative Medicine Advanced Therapy (RMAT) designations from the U.S. FDA, PRIME designation from the European Medicines Agency, and an Innovation Passport from the U.K. Medicines and Healthcare Products Regulatory Agency. These designations highlight the strong potential of Ixo-vec as a novel and impactful treatment for wAMD, signaling a promising future for patients struggling with this condition.
Andrew Adams, Group Vice President of Molecule Discovery at Eli Lilly, emphasized Ixo-vec's potential to revolutionize wAMD care. He noted that the therapy could shift the current treatment paradigm from one of chronic care involving numerous intravitreal injections to a more convenient, one-time treatment approach. This strategic investment by Eli Lilly, bolstered by its substantial cash reserves of $3.38 billion as of June 30, 2025, positions the company to potentially lead in the advanced gene therapy space. The market responded positively to the announcement, with LLY shares experiencing an increase of 1.37% and ADVM shares rising by 2.39% following the news.
This major acquisition marks a pivotal moment for both Eli Lilly and the field of ophthalmology. By integrating Adverum's advanced gene therapy platform and its leading candidate, Ixo-vec, Lilly is not only expanding its therapeutic pipeline but also investing in a future where patients with chronic eye conditions like wAMD could benefit from more efficient and less invasive treatment options. The prospect of a single-administration gene therapy has the potential to dramatically improve patient quality of life and redefine standards of care, making this collaboration a significant step forward in biomedical innovation.