Lilly Dives Deeper Into Gene Therapy With up to $262M Adverum Buy
The cornerstone of the deal is Ixo-vec, an intravitreal gene therapy currently in Phase III development for wet age-related macular degeneration. Eli Lilly made another foray into genetic medicine in June, picking up Verve Therapeutics for up to $1.3 billion. After dipping a toe into gene therapy waters in June with the up to $1.3 billion buyout of Verve Therapeutics, Eli Lilly is adding another toe. Friday, news broke that the Indianapolis-based pharma is picking up Adverum Biotechnologies and its lead program, Ixo-vec, a candidate for wet age-related macular degeneration, in a deal valued at up to $261.7 million.
Under the terms of the deal, Lilly will pay $3.56 per share of the California-based biotech, equating to a total upfront payment of $74.7 million for Adverum’s 20.98 million shares outstanding. The bulk of the deal potential comes through a contingent value right (CVR) worth $8.91, based on the achievement of two milestones. Adverum stockholders would be eligible for $1.78 per CVR upon the U.S. approval of Ixo-vec, if this occurs before the seventh anniversary of the deal’s closing, and up to $7.13 per CVR the first time the product exceeds $1 billion in annual worldwide net sales prior to the 10th anniversary of the closing. Such back-heavy deals have become more common in the long down market.
Adverum is developing a pipeline of one-time, intravitreal gene therapies aiming to restore vision and prevent blindness, according to Friday’s press release. The crown jewel of the deal, Ixo-vec, is in Phase III clinical trials for wet age-related macular degeneration (AMD), a therapeutic space projected to be worth nearly $18 billion by 2030.
When Adverum launched the Phase III ARTEMIS trial in May, it was the first-ever initiation of a registrational trial of an intravitreal gene therapy in this indication, the biotech said in its announcement. “Gene therapy is recognized as the most exciting modality on the horizon for the treatment of wet AMD,” CEO Laurent Fischer said in a statement at the time. Ixo-vec holds Fast Track and Regenerative Medicine Advanced Therapy (RMAT) designations in wet AMD.
Lilly has been interested in gene therapy for a while. At BIO2025—the same day the Verve acquisition was announced—Julie Gilmore, vice president and global head of Lilly Gateway Labs and Catalyze360 Portfolio Management, told BioSpace that along with the company’s core focus areas of obesity, type 2 diabetes, oncology and immunology, platforms and genetic medicine are an unofficial fifth focus.
Lilly has executed several deals in the $1–$3 billion range of late. In May, the company followed Vertex into the non-opioid pain space with the bolt-on acquisition of SiteOne Therapeutics for up to $1 billion, and in January Lilly acquired Scorpion Therapeutics’ PI3Kα inhibitor program, STX-478, for up to $2.5 billion.
Eli Lilly is deepening its commitment to gene therapy with the acquisition of Adverum Biotechnologies in a deal valued at up to $261.7 million, marking another strategic move following its $1.3 billion purchase of Verve Therapeutics earlier this year. Under the terms, Lilly will pay $3.56 per share for Adverum’s 20.98 million outstanding shares, totaling $74.7 million upfront, with an additional $8.91 per share in contingent value rights (CVRs) tied to future milestones.
Adverum shareholders stand to earn $1.78 per CVR if the company’s lead candidate, Ixo-vec, receives U.S. approval for wet age-related macular degeneration (AMD) within seven years, and another $7.13 per CVR if annual global sales surpass $1 billion within ten years. Ixo-vec, currently in Phase III trials, is the first intravitreal gene therapy to reach this stage for wet AMD—a market projected to reach nearly $18 billion by 2030.
