Eli Lilly and Company ( LLY ) and Adverum Biotechnologies, Inc. ( ADVM ) on Friday announced that they have entered into a definitive agreement under which Lilly will acquire Adverum Biotechnologies ( ADVM ), including its lead product, Ixo-vec.

Acquisition Terms and Contingent Value Rights (CVR)

Under the merger terms, Eli Lilly ( LLY ) will launch a tender offer to acquire all outstanding Adverum shares for up to $12.47 per share, consisting of $3.56 in cash at closing and a non-transferable contingent value right (CVR) worth up to $8.91 per share tied to future milestones.

The CVR payments include up to $1.78 per share upon U.S. approval of Ixo-vec within seven years, and up to $7.13 per share if Ixo-vec’s annual global sales exceed $1 billion within ten years.

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The companies expect the transaction to close in the fourth quarter of 2025.

Adverum is advancing a portfolio of intravitreal, single-administration gene therapies to provide functional cures that restore vision and prevent blindness.

Ixo-vec: Phase 3 Gene Therapy for Wet AMD

Its lead candidate, Ixo-vec, is being developed as a one-time intravitreal gene therapy for wet age-related macular degeneration (wAMD) a serious, chronic retinal condition that affects millions globally.

Ixo-vec is designed to deliver sustained intraocular aflibercept levels, potentially reducing the treatment burden of chronic anti-VEGF therapies while offering the prospect of improved and long-lasting vision outcomes.

Regulatory Designations and Clinical Trial Status

Ixo-vec is currently being evaluated in the ARTEMIS Phase 3 clinical trial, which has completed patient screening.

The program has received multiple regulatory designations, including Fast Track and Regenerative Medicine Advanced Therapy (RMAT) status from the U.S. FDA, PRIME designation from the European Medicines Agency, and an Innovation Passport from the U.K. Medicines and Healthcare Products Regulatory Agency, recognizing its potential as a novel treatment for wet age-related macular degeneration (wAMD).

Executive Commentary on Ixo-vec’s Potential

“Ixo-vec has the potential to transform wAMD treatment from a paradigm of chronic care with repeated intravitreal injections to a convenient one-time therapy,” said Andrew Adams, Lilly group vice president, Molecule Discovery.

Eli Lilly ( LLY ) had cash and cash equivalents of $3.38 billion as of June 30, 2025.

Price Action: LLY shares were trading higher by 1.37% to $832.32 at last check Friday. ADVM was up 2.39%.

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