Eli Lilly and Company announced a definitive agreement to acquire Adverum Biotechnologies for up to $261.7 million, gaining access to the biotech's lead gene therapy candidate Ixo-vec for wet age-related macular degeneration (wAMD). The transaction marks Lilly's second significant gene therapy acquisition in 2025, following the up to $1.3 billion buyout of Verve Therapeutics in June.
Deal Structure and Timeline
Under the acquisition terms, Lilly will pay $3.56 per share upfront, totaling $74.7 million for Adverum's 20.98 million outstanding shares. The majority of the deal value comes through contingent value rights (CVRs) worth $8.91 per share, based on two key milestones. Adverum stockholders would receive $1.78 per CVR upon U.S. approval of Ixo-vec within seven years of closing, and up to $7.13 per CVR when the product first exceeds $1 billion in annual worldwide net sales within 10 years of closing.
The transaction is expected to close before the end of 2025.
Ixo-vec: A Potential Paradigm Shift
Ixo-vec represents a novel approach to treating wet AMD, a serious, chronic and progressive retinal disease affecting millions of people worldwide. The intravitreal gene therapy is designed as a single one-time treatment to deliver continuous and stable intraocular aflibercept levels, potentially eliminating the significant patient burden associated with current chronic anti-VEGF therapies while improving vision outcomes.
"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.
Clinical Development and Regulatory Status
The gene therapy is currently being evaluated in the Phase 3 ARTEMIS clinical trial, which has completed screening. When Adverum launched this trial in May, it marked the first-ever initiation of a registrational trial of an intravitreal gene therapy for this indication.
Ixo-vec has received multiple regulatory designations recognizing its potential: Fast Track and Regenerative Medicine Advanced Therapy (RMAT) designations from the U.S. Food and Drug Administration, PRIME designation from the European Medicines Agency, and the Innovation Passport from the United Kingdom's Medicines and Healthcare Products Regulatory Agency.
Market Opportunity and Strategic Alignment
The wet AMD therapeutic space is projected to be worth nearly $18 billion by 2030, representing a significant commercial opportunity. Laurent Fischer, president and CEO of Adverum Biotechnologies, noted the strategic fit: "We share Lilly's commitment to healthy aging and genetic medicines innovation. Their scientific depth and global reach offer the opportunity to accelerate our vision to deliver a transformative One and Done™ therapy that can potentially restore and preserve vision for millions of patients living with wAMD."
Expanding Gene Therapy Portfolio
This acquisition aligns with Lilly's broader genetic medicine strategy. At BIO2025, Julie Gilmore, vice president and global head of Lilly Gateway Labs and Catalyze360 Portfolio Management, identified platforms and genetic medicine as an unofficial fifth focus area alongside the company's core areas of obesity, type 2 diabetes, oncology and immunology.
The deal strengthens Lilly's position in genetic medicines and expands its capabilities in addressing age-related diseases, building on the company's established expertise in chronic conditions affecting aging populations.
