Eli Lilly and Company, which is listed on the New York Stock Exchange as LLY, has reached a final agreement to buy Adverum Biotechnologies, Inc., a company listed on the Nasdaq that focuses on developing gene therapies for eye diseases. The deal includes Adverum’s main gene therapy, called Ixo-vec. Adverum is working on a range of one-time gene treatments intended to provide long-term solutions that can help restore vision and stop blindness. Ixo-vec is designed to treat wet age-related macular degeneration, a serious and progressively worsening eye condition that affects millions of people around the world. The treatment uses a single injection into the eye to keep aflibercept levels steady, aiming to reduce the need for regular anti-VEGF injections and improve vision outcomes.

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Ixo-vec is currently being tested in the Phase 3 ARTEMIS trial, which has finished the patient screening phase. It has received several regulatory designations, such as Fast Track and Regenerative Medicine Advanced Therapy from the U.S. Food and Drug Administration, PRIME status from the European Medicines Agency, and an Innovation Passport from the UK Medicines and Healthcare Products Regulatory Agency for the treatment of wet AMD. Andrew Adams, group vice president of Molecule Discovery at Lilly, said that Ixo-vec could change how wet AMD is treated by replacing long-term management with a single, easy-to-administer therapy and expressed excitement about bringing the Adverum team into Lilly to move this innovative medicine forward.

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Laurent Fischer, the president and CEO of Adverum Biotechnologies, said he is excited about the possibility of joining Lilly, a company with a strong history of developing treatments for chronic and age-related conditions. He highlighted that both companies are committed to innovation in genetic medicine and healthy aging. Fischer added that Lilly’s global presence and scientific know-how offer the chance to speed up Adverum’s vision of offering a transformative one-time therapy that could help preserve and recover vision for millions of wet AMD patients. He also thanked the Adverum team, along with the researchers, patients, and caregivers who have supported the Ixo-vec program.

Under the agreement, Lilly will offer to buy all of Adverum’s shares for $3.56 in cash at closing, plus one contingent value right for each share. The CVR can provide up to an additional $8.91 per share if two milestones are reached: U.S. approval of Ixo-vec before the seventh anniversary of the deal and global sales exceeding $1 billion before the tenth anniversary. The total possible value per share could be as high as $12.47. The deal is expected to finish in the fourth quarter of 2025, provided standard closing conditions are met, including the majority of Adverum shares being tendered. Shares not tendered will be acquired in a later merger at the same price.

As part of the transaction, Adverum has signed a secured Promissory Note with Lilly for up to $65 million, disbursed in four payments, to fund ongoing clinical trials and development for Ixo-vec before the deal closes. The note is supported by Adverum’s assets, including its intellectual property, and becomes due if the transaction is canceled. Adverum’s board approved the deal after reviewing alternative strategies, potential financing options, and discussions with other partners. The board concluded that the agreement with Lilly, including the possible upside from the CVR, is the best option for Adverum’s shareholders while allowing the continued development of Ixo-vec.

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