What's Happening?
Eli Lilly, a pharmaceutical company based in Indianapolis, has announced its acquisition of Adverum Biotechnologies for up to $261.7 million. This move follows Lilly's previous investment in gene therapy,
including a $1.3 billion buyout of Verve Therapeutics. The acquisition includes Adverum's lead program, Ixo-vec, which is a candidate for treating wet age-related macular degeneration (AMD). The deal involves an upfront payment of $74.7 million and a contingent value right (CVR) worth $8.91, contingent on achieving specific milestones. Ixo-vec is currently in Phase III clinical trials and holds Fast Track and Regenerative Medicine Advanced Therapy designations.
Why It's Important?
This acquisition signifies Eli Lilly's strategic expansion into the gene therapy market, particularly in the treatment of wet AMD, a condition projected to be worth nearly $18 billion by 2030. The deal highlights the growing interest in gene therapy as a promising treatment modality. For Adverum, this acquisition provides financial backing and resources to advance its innovative therapies. The broader pharmaceutical industry may see increased competition and collaboration in gene therapy, potentially accelerating the development of treatments for various conditions.
What's Next?
The transaction is expected to close by the end of the year. Eli Lilly will likely focus on advancing Ixo-vec through the final stages of clinical trials and towards regulatory approval. The success of this acquisition could lead to further investments in gene therapy by Lilly and other pharmaceutical companies. Stakeholders, including investors and patients, will be closely monitoring the progress of Ixo-vec and its impact on the treatment landscape for wet AMD.
