Eli Lilly and its wholly‑owned subsidiary, Flying Tigers Acquisition Corporation, closed a tender offer for all outstanding shares of Adverum Biotechnologies on December 9 2025. The offer paid $3.56 in cash per share and granted a contingent value right that could add up to $8.91 per share if Adverum’s lead intravitreal gene‑therapy candidate, Ixo‑vec, meets specified milestones. A total of 16,493,335 shares—about 64% of Adverum’s outstanding equity—were tendered, giving Lilly a controlling stake in the company.
The acquisition expands Lilly’s gene‑therapy portfolio into ophthalmology, adding a platform that delivers a single‑administration therapy for wet age‑related macular degeneration (wAMD). Adverum’s proprietary AAV.7m8 vector, engineered for efficient intravitreal delivery, underpins Ixo‑vec’s ability to produce continuous levels of aflibercept in the eye. The wAMD market is projected to reach nearly $18 billion by 2030, positioning Lilly to capture a share of a high‑growth therapeutic area.
Adverum entered the deal with a challenging financial profile: the company had posted significant net losses and a declining cash balance in the months leading up to the acquisition. The transaction provides an immediate cash infusion and a potential upside from the contingent value right, offering a lifeline for shareholders and allowing the company to focus on advancing Ixo‑vec without the pressure of ongoing cash burn.
Analysts reacted to the deal with a mix of optimism and caution. Some firms maintained positive ratings, citing continued progress in Ixo‑vec’s Phase 3 ARTEMIS study, while others lowered price targets to reflect the premium paid and the reduced standalone value of Adverum’s pipeline. The varied responses underscore the trade‑off between the strategic benefits to Lilly and the valuation impact on Adverum’s stock.
Andrew Adams, Lilly’s Vice President of Molecule Discovery, said the acquisition “expands gene therapy’s potential to alleviate the burden of age‑related conditions, including vision loss.” Laurent Fischer, Adverum’s CEO, added that the partnership “accelerates our vision to deliver a transformative One‑and‑Done therapy that can restore and preserve vision for millions of patients living with wAMD.”
For Lilly, the deal signals a deepening commitment to gene therapy and a strategic pivot toward high‑margin, high‑impact indications. Integrating Adverum’s platform and pipeline will broaden Lilly’s therapeutic reach, while the contingent value right aligns future upside with the clinical success of Ixo‑vec, mitigating upfront risk and reinforcing Lilly’s long‑term growth trajectory.
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