INDIANAPOLIS (dpa-AFX) - Eli Lilly and Company (LLY) on Friday said it has agreed to acquire Adverum Biotechnologies, Inc. (ADVM) in a transaction valued at up to $12.47 per share.
Under the terms of the agreement, Lilly will launch a tender offer to purchase all outstanding Adverum shares for $3.56 per share in cash, plus one contingent value right (CVR) per share. Each CVR will entitle holders to receive up to an additional $8.91 in cash, contingent upon the achievement of two specified milestones.
Adverum shareholders will receive $1.78 per CVR if Ixo-vec, the company's lead gene therapy candidate for wet age-related macular degeneration (wAMD), secures U.S. regulatory approval within seven years of the deal's closing. They will be eligible for a further $7.13 per CVR if Ixo-vec achieves annual global net sales exceeding $1 billion within ten years of closing.
Ixo-vec is a single-administration intravitreal gene therapy currently being evaluated in a Phase 3 trial, known as ARTEMIS, for patients with wAMD.
The transaction is expected to close in the fourth quarter of 2025.
Adverum shares jumped over 20% in premarket trading, after closing Thursday at $4.18.
Lilly's shares closed at $821.04, up 1.06% on Thursday.
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