12:33 PM EDT, 10/24/2025 (MT Newswires) -- Adverum Biotechnologies' ( ADVM ) deal to be acquired by Eli Lilly ( LLY ) represents a likely "best possible outcome" for the company, Mizuho Securities said in a Friday note.

Eli Lilly ( LLY ) said earlier Friday it agreed to acquire Adverum Biotechnologies ( ADVM ) in a deal worth up to $12.47 per share. The purchase price includes $3.56 per share in cash payable at closing and an additional payment of up to $8.91 linked to the achievement of two milestones.

The first milestone includes up to $1.78 if Ixo-vec receives US approval within seven years of deal closing, while up to $7.13 if the therapy reaches over $1 billion in annual global sales within 10 years of the closing, the companies said.

Mizuho said Eli Lilly's ( LLY ) buyout solves Adverum Biotechnologies' ( ADVM ) near- and longer-term cash requirements and the company's need for a commercial partner for its lead product candidate, Ixo-vec.

While being supportive of the deal, Mizuho said it was "a bit disappointed" by the transaction terms from a shareholder's perspective. Mizuho said that the deal is "very back-end loaded" with a contingent value right component representing 71% of the total transaction value.

The terms also indicate that the near-term cash component paid to shareholders on deal closing represents a 15% discount to the Thursday closing price of Adverum stock, Mizuho said.

Mizuho has an outperform rating on Adverum Biotechnologies ( ADVM ) with a $12 price target.

Shares of Adverum Biotechnologies ( ADVM ) were up over 3% in recent Friday trading.

Price: 4.35, Change: +0.17, Percent Change: +3.95