Eli Lilly Expands Genetic Medicine Portfolio with Acquisition of Adverum Biotechnologies

INDIANAPOLIS, IN — October 24, 2025 — Eli Lilly has further cemented its commitment to genetic medicine by agreeing to acquire Adverum Biotechnologies in a deal valued at up to $261.7 million. The centerpiece of the acquisition is Adverum’s lead candidate, Ixo-vec, an AAV-based intravitreal gene therapy currently in Phase III development for wet age-related macular degeneration (AMD).

The acquisition follows Lilly’s previous foray into genetic medicine in June 2025 with the up to $1.3 billion buyout of Verve Therapeutics, confirming platforms and genetic medicine as an unofficial fifth focus area for the pharmaceutical giant.

Deal Structure Focuses on Milestones

Under the terms of the agreement, Lilly will pay an upfront sum of $74.7 million (equivalent to $3.56 per share) for Adverum’s outstanding shares. The majority of the deal’s value is structured through a Contingent Value Right (CVR), offering Adverum stockholders up to an additional $8.91 per CVR based on two milestones:

1. 1.78 per CVR upon U.S. approval of Ixo-vec (if achieved within seven years of closing).
2. Up to $7.13 per CVR the first time the product exceeds $1 billion in annual worldwide net sales (prior to the 10th anniversary of closing)

This back-heavy structure, which ties the bulk of the payment to future commercial success, is a trend seen increasingly often in the current long-term down market. The transaction is expected to close before the end of 2025.

Ixo-vec: An AAV Therapy for a Massive Market

Ixo-vec is a one-time gene therapy injection designed to restore vision and prevent blindness in patients with wet AMD. The treatment utilizes an Adeno-Associated Virus (AAV) vector—the dominant delivery system in approved gene therapies—to achieve sustained expression in the eye. Wet AMD is a major therapeutic space projected to be worth nearly $18 billion by 2030.

Adverum launched the Phase III ARTEMIS trial for Ixo-vec in May, marking the first-ever initiation of a registrational trial for an intravitreal gene therapy in this indication. The candidate currently holds both Fast Track and Regenerative Medicine Advanced Therapy (RMAT) designations from the FDA.

“Gene therapy is recognized as the most exciting modality on the horizon for the treatment of wet AMD,” Adverum CEO Laurent Fischer stated previously, highlighting the transformative potential that Lilly is now betting on.

The Adverum deal is the latest in a series of strategic acquisitions by Lilly, which has executed several deals in the $1–$3 billion range over the past year, including the acquisition of SiteOne Therapeutics and Scorpion Therapeutics’ PI3K$\alpha$ inhibitor program.