Eli Lilly and Company has announced a definitive agreement to acquire Adverum Biotechnologies, Inc., a clinical-stage biotechnology firm specializing in single-administration gene therapies for vision restoration. The acquisition brings into Lilly’s fold Adverum’s lead candidate, Ixo-vec, a one-time intravitreal gene therapy designed to treat wet age-related macular degeneration (wAMD) a progressive retinal disease affecting millions worldwide.
Under the terms of the merger agreement, Lilly will offer $3.56 per share in cash, plus a contingent value right (CVR) of up to $8.91 per share, tied to regulatory and commercial milestones. The total potential consideration amounts to $12.47 per share, valuing the transaction at approximately $261.7 million.
Transforming Eye Care with “One and Done” Therapy
Ixo-vec, currently being evaluated in the Phase 3 ARTEMIS trial, aims to deliver sustained intraocular aflibercept expression through a single intravitreal injection potentially eliminating the need for frequent anti-VEGF injections required by current treatments such as Eylea and Lucentis. The therapy has received Fast Track and RMAT designations from the U.S. FDA, as well as PRIME status from the European Medicines Agency and an Innovation Passport from the UK’s MHRA, underscoring its regulatory promise.
“Ixo-vec has the potential to transform wAMD treatment from a paradigm of chronic care to a convenient one-time therapy,” said Andrew Adams, Lilly’s Group Vice President, Molecule Discovery. “We are eager to welcome Adverum colleagues and accelerate this innovative medicine to patients.”
Adverum CEO Laurent Fischer, M.D., echoed the sentiment, noting that joining Lilly “offers the opportunity to advance our vision to deliver a transformative One and Done therapy that can restore and preserve vision for millions.”
Deal Structure and Financing Support
The transaction, unanimously approved by Adverum’s board of directors, includes a $65 million secured promissory note from Lilly to fund ongoing Ixo-vec trials prior to deal completion. The loan is backed by Adverum’s assets and will be repayable if the transaction is terminated. The acquisition is expected to close in Q4 2025, pending customary closing conditions and tender of a majority of Adverum’s outstanding shares.
Strategic Context: Strengthening Lilly’s Gene Therapy and Ophthalmology Pipeline
For Adverum, the acquisition provides a financial lifeline its cash reserves were projected to last only through October 2025. For Lilly, the deal strengthens its presence in ophthalmology and genetic medicine, aligning with its strategic shift toward durable, one-time therapies.
Lilly’s acquisition comes amid growing competition in gene therapies for wAMD, with 4D Molecular Therapeutics and Regenxbio/AbbVie advancing rival candidates. Analysts estimate the wAMD gene therapy market could surpass $1.3 billion in annual global sales by 2033, underscoring the blockbuster potential of successful entrants.
Broader Industry Implications
The Lilly–Adverum transaction reflects key biopharma trends:
- Durable Therapeutics Focus: Transition from chronic dosing to single-administration solutions that ease treatment burdens.
- M&A as Innovation Pathway: Major pharma players are acquiring late-stage assets to accelerate R&D pipelines.
- Ophthalmology’s Growth Potential: Aging populations and rising retinal disease prevalence make vision care a high-priority therapeutic area.
If successful, Lilly’s integration of Ixo-vec could redefine the standard of care for wAMD and accelerate adoption of gene therapies across ophthalmology and other chronic disease areas marking another pivotal step in the evolution of precision and regenerative medicine.
