TLDR
- Eli Lilly acquires Adverum Biotechnologies for $12.47 per share in cash.
- The move expands its gene therapy and ophthalmology pipeline.
- Adverum’s lead candidate, Ixo-vec, targets wet age-related macular degeneration.
- Lilly stock rose as investors welcomed the deal’s strategic fit.
- Completion expected in early 2026 pending regulatory approvals.
Eli Lilly and Co. (NYSE: LLY) stock traded higher on Thursday, closing at $837.62, up 2.8% after announcing a definitive agreement to acquire Adverum Biotechnologies for $12.47 per share in cash, representing a premium of about 69% to Adverum’s previous closing price.
Eli Lilly and Company, LLY
The acquisition, valued at roughly $1.3 billion, is part of Lilly’s strategy to expand its gene therapy and ophthalmology portfolio, building on prior acquisitions such as Versanis Bio and Akouos. The transaction, approved by both companies’ boards, is expected to close in the first quarter of 2026, pending regulatory and shareholder approval.
Strengthening Gene Therapy Capabilities
The deal will give Lilly access to Adverum’s proprietary vector capsid and manufacturing platform, designed to enhance gene delivery and reduce immunogenicity. The acquisition also includes Ixo-vec (ADVM-022), a one-time intravitreal gene therapy for wet age-related macular degeneration (AMD), a leading cause of vision loss globally.
🚨 $LLY to acquire $ADVM for up to $12.47 per share with $3.56 cash plus a CVR that can pay up to $8.91 upon hitting two milestones. pic.twitter.com/0SJhoQNFmv
— Bearlovesbull (@Bearlovesbull) October 24, 2025
If successful, Ixo-vec could significantly reduce the need for frequent anti-VEGF injections that patients currently require. Lilly stated that it plans to accelerate late-stage development of Ixo-vec and explore its potential across multiple retinal diseases.
Adverum’s Strategic Fit and Market Impact
Adverum Biotechnologies has been a pioneer in ocular gene therapy. Its platform leverages a next-generation AAV.7m8 capsid to achieve effective retinal delivery via intravitreal injection — a less invasive alternative to subretinal surgery.
With this acquisition, Lilly gains both a clinical-stage therapy with strong commercial potential and a gene therapy manufacturing infrastructure that complements its growing biologics capabilities. The transaction underscores Lilly’s commitment to expanding into new therapeutic modalities beyond its dominant diabetes and obesity franchises.
Financial and Regulatory Outlook
Lilly will finance the deal using available cash reserves. The company said the transaction will have a minimal near-term impact on earnings per share, but it expects long-term value creation through portfolio diversification and new revenue streams from ophthalmology.
Regulatory filings indicate the deal should close by early 2026, following customary closing conditions. Analysts from major investment firms noted that the acquisition aligns with Lilly’s ongoing investment in next-generation genetic medicines and may enhance its innovation pipeline.
Market Reaction and Analyst Sentiment
Following the announcement, LLY shares extended gains in premarket trading, reflecting investor optimism about the acquisition’s potential. Analysts at Goldman Sachs and Morgan Stanley reiterated their “Buy” ratings, highlighting the acquisition as a “strategic fit” that could strengthen Lilly’s R&D presence in rare and chronic disease areas.
The acquisition of Adverum Biotechnologies marks Lilly’s latest move to diversify its business beyond metabolic disease and establish a stronger foothold in the gene therapy sector.
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