#United States #Indianapolis #Eli Lilly #Adverum Biotechnologies #Ixo-vec

Eli Lilly to Acquire Adverum Biotechnologies

On October 24, 2025, Eli Lilly and Company announced a significant business move by entering into a definitive agreement to acquire Adverum Biotechnologies, a clinical-stage company that focuses on pioneering gene therapy techniques. This acquisition marks a strategic expansion for Lilly in the burgeoning field of genetic medicine.

The Lead Product: Ixo-vec

Adverum’s flagship product, Ixo-vec, is currently in Phase 3 clinical trials and is designed to treat vision loss related to wet age-related macular degeneration (wAMD) through a single, one-time intravitreal injection. This innovative approach aims to provide patients with a durable and effective solution, minimizing the burdens associated with current treatment regimens that typically require frequent anti-VEGF injections.

The need for a new treatment paradigm in wAMD is urgent, as this chronic condition affects millions worldwide, leading to significant visual impairment and impacting quality of life. Clinical outcomes suggest that Ixo-vec will offer sustained and stable intraocular aflibercept levels, which could substantially improve patient outcomes compared to existing therapies.

Regulatory Designations and Clinical Impact

Ixo-vec has already earned several prestigious designations, including 'Fast Track' and 'Regenerative Medicine Advanced Therapy' (RMAT) from the U.S. Food and Drug Administration (FDA). Moreover, it has received 'PRIME' designation from the European Medicines Agency, recognizing its potential as a transformative treatment option. With such a robust regulatory framework supporting its development, the future of Ixo-vec looks promising, leading Lilly to prioritize its acquisition of Adverum.

Andrew Adams, Lilly’s group vice president, expressed optimism regarding the potential of Ixo-vec to change how wet AMD is treated, shifting from a chronic care model requiring multiple injections to a more convenient, single-dose therapy. This aligns perfectly with Lilly's goal to pioneer therapies that enhance patient care in chronic conditions.

Financial Details of the Acquisition

Under the terms of the acquisition agreement, Lilly intends to conduct a tender offer to purchase all outstanding shares of Adverum common stock. The offer includes a cash payment of $3.56 per share at closing, alongside a non-transferable contingent value right (CVR) that can yield an additional $8.91 per CVR based on the successful achievement of specific milestones. These milestones include the U.S. regulatory approval of Ixo-vec before the seventh anniversary of the acquisition and the achievement of annual sales exceeding $1 billion by the tenth anniversary of closing.

Strategic Benefits of the Merger

Laurent Fischer, M.D., president of Adverum, acknowledged the immense value that joining forces with Lilly brings, citing their expertise in discovering and developing treatments for chronic and age-related conditions. This transition not only benefits Adverum's researchers but also aligns with Lilly's broader commitment to advancing genetic medicine.

This merger also allows for financial backing through a promissory note that provides Adverum up to $65 million to continue its clinical trials for Ixo-vec leading up to the transaction's closure. Lilly's financial commitment is crucial as Adverum's existing cash reserves are anticipated to sustain operations only until late October 2025 without this infusion.

Looking Toward the Future

Ultimately, the acquisition is seen as a win-win, giving Lilly a powerful addition to its portfolio in genetic therapies while enhancing Adverum's capabilities through Lilly's established global reach and resources. Should the transaction close as planned in the fourth quarter of 2025, it presents an exciting turning point for both companies in their respective missions to improve healthcare outcomes for millions of patients worldwide.

Lilly's foray into gene therapy through this acquisition not only highlights the growing acknowledgment of genetic medicine's potential but also reinforces its commitment to addressing age-related health challenges.