Eli Lilly and Company closed its acquisition of Adverum Biotechnologies, Inc. on December 9, 2025. The deal was executed by Lilly’s wholly‑owned subsidiary, Flying Tigers Acquisition Corporation, which paid $3.56 in cash per share for all of Adverum’s outstanding shares and granted a non‑tradable contingent value right that could pay up to $8.91 per share if specified milestones are met. With 20.9 million shares outstanding at closing, the transaction’s total potential value is approximately $261.7 million, including the contingent value right.
The acquisition brings Adverum’s proprietary intravitreal gene‑therapy platform into Lilly’s portfolio, giving the company a foothold in the rapidly growing ocular gene‑therapy market. Adverum’s lead candidate, ixoberogene soroparvovec (Ixo‑vec), is a one‑time intravitreal injection for wet age‑related macular degeneration that has received Fast Track, RMAT, PRIME, and Innovation Passport designations. The deal complements Lilly’s earlier $1.3 billion purchase of Verve Therapeutics and positions the company to capture new revenue opportunities beyond its cardiometabolic and oncology assets.
Adverum’s financial profile made it an attractive target. The company reported a negative EBITDA of $186 million for the trailing twelve months, reflecting heavy R&D and commercialization expenses. The acquisition allows Lilly to acquire a promising pipeline at a price that reflects Adverum’s current cash‑flow constraints while providing Lilly with a platform that can be leveraged across multiple indications.
Lilly’s own financial performance underscores the strategic fit. In the third quarter of 2025, the company generated $17.6 billion in revenue, a 54% year‑over‑year increase driven by strong sales of Mounjaro and Zepbound. Lilly raised its full‑year 2025 revenue guidance to $63.0 billion–$63.5 billion, reflecting confidence in its growth trajectory and the added value of the Adverum platform.
Andrew Adams, Lilly’s group vice president of molecule discovery, said the acquisition “provides an opportunity to expand gene therapy’s potential to alleviate the burden of age‑related conditions, including vision loss.” He added that the partnership will accelerate Lilly’s ability to bring innovative therapies to patients while strengthening its competitive position in the gene‑therapy space.
Analysts covering Adverum reacted to the deal with a mix of downgrades and maintained ratings. H.C. Wainwright and Chardan Capital Markets lowered their price targets to $5.00 from $33.00, citing the acquisition’s impact on Adverum’s standalone prospects. Mizuho, however, kept an “Outperform” rating and a $5.50 target, noting progress in the Phase 3 ARTEMIS study for Ixo‑vec. The divergent views reflect the trade‑off between Adverum’s promising pipeline and its current financial challenges.
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