Eli Lilly To Acquire Adverum Biotechnologies

• Under the deal, Lilly will commence a tender offer to acquire all of the outstanding shares of Adverum common stock at a per-share price of $3.56, payable in cash at closing, plus milestone payments of up to $8.91 per contingent value right. 
• The transaction is expected to close in the fourth quarter of 2025, subject to satisfaction of the closing conditions.
   

Eli Lilly and Company (LLY) said on Friday that it has entered into a definitive agreement to acquire Adverum Biotechnologies, Inc. (ADVM) for a total potential per share consideration of up to $12.47.

Under the deal, Lilly will commence a tender offer to acquire all of the outstanding shares of Adverum common stock at a per-share price of $3.56, payable in cash at closing, plus milestone payments of up to $8.91 per contingent value right. The upfront cash payment, however, represents a discount of about 15% from the stock’s closing price on Thursday.

The transaction is expected to close in the fourth quarter of 2025, subject to satisfaction of the closing conditions.

Board’s View

Adverum said the transaction was unanimously approved by its board of directors following an evaluation of strategic alternatives and discussions with potential partners and buyers. It added that the board believes the agreement with Lilly is in Adverum's and its stockholders' best interests.

The acquisition includes Adverum’s lead product candidate Ixo-vec, a late-stage gene therapy designed to treat vision loss associated with wet age-related macular degeneration with a single intravitreal dose. The milestone payments in the deal are associated with the development of the gene therapy, including U.S. approval.

Fund Arrangements

Adverum has also entered into a Promissory Note with Lilly in conjunction with the transaction that enables it to receive a loan of up to $65 million from Lilly, drawable in four installments, subject to specified conditions. The loan can be used to support ongoing Ixo-vec clinical trials and registrational development activities prior to the anticipated closing of the transaction, it said.

Shares of ADVM soared 3% on Friday morning at the time of writing. On Stocktwits, retail sentiment around ADVM soared from ‘bearish’ to ‘extremely bullish’ territory over the past 24 hours, while message volume rose from ‘extremely low’ to ‘high’ levels.

ADVM stock is down by 7% this year and by about 46% over the past 12 months. 

Read also: GM Reportedly Lays Off Over 200 Employees Days After Raising 2025 Earnings Guidance

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