Eli Lilly expands gene therapy portfolio by acquiring Adverum Biotechnologies in US$262M deal

USA—Eli Lilly, the US pharmaceutical giant, has agreed to acquire Adverum Biotechnologies, a company specializing in eye diseases.

This move contrasts with a recent trend where many big pharma companies have been avoiding investments in the cell and gene therapy sector.

Under the terms of the deal announced on October 24, Eli Lilly is offering US$3.56 in cash per Adverum share, along with milestone payments totaling US$8.91 per share.

These additional payments depend on Adverum’s leading gene therapy candidate, ixo-vec, receiving US regulatory approval within 7 years and on the therapy achieving annual global sales exceeding US$1 billion within the next decade.

 The total offer values Adverum at approximately US$261.7 million.

The agreed share price represents a nearly 15% discount to Adverum’s closing price of US$4.18 on October 23.

For Adverum, which has been facing financial difficulties, the deal provides a crucial lifeline, as by July 2025, the biotech had only US$44.4 million in cash.

Its lead candidate, ixo-vec, an intravitreal gene therapy targeting wet age-related macular degeneration (wAMD), had entered Phase III clinical trials in March 2025 (trial number NCT06856577).

Eli Lilly has provided Adverum with a US$65 million loan to support clinical trials, warning that without this funding, Adverum could only sustain operations until October 2025 before needing to shut down.

Despite this financial support, Eli Lilly sees an opportunity to enter the lucrative wAMD market by acquiring ixo-vec.

Currently, no gene therapies have been approved to treat wAMD.

Existing therapies work by blocking vascular endothelial growth factor (VEGF).

For instance, Regeneron’s Eylea (aflibercept), a leading wAMD drug, requires injections every four weeks for five months, then every two months thereafter.

In contrast, ixo-vec is designed as a one-time gene therapy, potentially simplifying treatment for patients.

Andrew Adams, vice president of Lilly’s molecule discovery group, stated, “Ixo-vec has the potential to transform wAMD treatment from chronic care with repeated injections to a convenient one-time therapy.”

Adverum’s CEO, Laurent Fischer, highlighted that Lilly’s global reach and scientific expertise could accelerate the development of this transformative treatment for millions of wAMD patients.

This acquisition is not Eli Lilly’s only move in the gene therapy space in 2025.

Earlier in the year, the company signed a licensing deal with Sangamo Therapeutics for up to US$1.4 billion to develop gene therapies targeting neurological conditions.

Additionally, in May 2025, Lilly acquired RNA-based gene therapy developer Rznomics for US$1.3 billion.

Eli Lilly’s continued investments in gene therapy contrast with those of other large pharmaceutical companies, which have recently scaled back or closed their cell and gene therapy divisions.

For example, Galapagos shut down its cell and gene therapy unit earlier this month after failing to find a buyer.

Japan’s Takeda also exited cell therapy research, focusing instead on small molecules, biologics, and antibody-drug conjugates (ADCs).

Similarly, Gilead Sciences’ Kite Pharma ended its US$2.3 billion collaboration with Shoreline on cell therapy research in September 2025.

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and beyond. Also, follow us on our WhatsApp channel for updates.