Meta description: Eli Lilly finalizes the acquisition of Adverum Biotechnologies for $3.56 per share plus contingent value rights worth up to $8.91 per share.
Eli Lilly and Company has closed its tender offer to acquire Adverum Biotechnologies through its wholly owned subsidiary Flying Tigers Acquisition Corporation. The deal includes a cash payment of $3.56 per share alongside a non-tradable contingent value right (CVR) offering up to two possible milestone-based payments totaling $8.91 per share. This is a key development for biotech investors, corporate finance professionals, and stakeholders in gene therapy ventures.
What are the acquisition terms and structure?
The acquisition was executed via a tender offer by Lilly’s subsidiary. Each Adverum shareholder receives $3.56 in cash per share, excluding interest and subject to applicable tax withholdings, plus one CVR per share. The CVR value depends on achieving predetermined operational and development milestones, with two potential future payments totaling up to $8.91 per CVR.
This structure allows for immediate liquidity to holders while maintaining a performance-based incentive linked to Adverum’s gene therapy pipeline.
How many shares were tendered and accepted?
At the expiration of the offer on December 8, 2025, 16,493,335 shares were validly tendered without withdrawal. This represents about 64% of Adverum’s outstanding common shares at that time. Computershare Inc. and its affiliate managed the depositary and payment process. The acceptance of tendered shares met all conditions required under the Agreement and Plan of Merger dated October 24, 2025.
The acquisition closed on December 9, 2025, bringing Adverum fully under Lilly’s corporate structure.
What is the significance for Lilly and Adverum’s growth strategy?
Lilly gains access to Adverum’s proprietary intravitreal gene therapy platform aimed at treating ocular diseases such as wet age-related macular degeneration. For Adverum’s stakeholders, the transaction could accelerate development timelines and potentially bring single-administration ocular treatments closer to market.
Gene therapy remains a competitive space requiring capital-intensive R&D. By integrating Adverum’s technology and team, Lilly positions itself to broaden its pipeline in genetic medicine and reinforce its biotechnology portfolio.
For investors, the CVR component ties future payments directly to milestone achievements. This structure could distribute risk while giving upside potential contingent on clinical and regulatory progress.
FAQ
- What was the cash value per Adverum share?
The cash value was $3.56 per share, subject to tax withholdings. - What is a contingent value right in this deal?
The CVR entitles the holder to up to $8.91 in total future payments if certain milestones are met. - How many shares were tendered?
Approximately 16.49 million shares, about 64% of the company’s outstanding shares, were tendered. - When did the acquisition close?
The acquisition was completed on December 9, 2025.
Conclusion
The completion of Lilly’s acquisition of Adverum reflects a strategic expansion into the gene therapy segment. The combination of upfront cash and milestone-based CVRs offers shareholders a blend of certainty and potential future upside. For biotech investors, this deal is an example of how acquisition structures can align current value with longer-term performance linked to innovation milestones.
Disclaimer
This content is provided for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult a professional before making investment decisions.
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This article is based on publicly available financial information.