Adverum Biotechnologies to be Acquired by Eli Lilly for Up to $12.47 per Share
Written by Emily J. Thompson, Senior Investment Analyst
Source: Newsfilter
- Acquisition Offer: Eli Lilly initiated a tender offer for Adverum on November 7, 2025, providing $3.56 per share in cash plus up to $8.91 in contingent value rights, totaling a potential $12.47 per share, significantly enhancing shareholder value.
- Funding Support: The Promissory Note signed with Lilly allows Adverum to access up to $65 million, of which $40 million has already been advanced, with an additional $25 million expected on December 5, 2025, to support clinical trials and operations.
- Liquidity Risk: Should the merger agreement be terminated, Adverum faces a liquidity crisis, unable to repay the Promissory Note, which could lead to bankruptcy, highlighting the urgency of this transaction.
- Board Recommendation: After an 18-month strategic review, Adverum's Board believes the transaction with Lilly is the best option, especially given the absence of other acquisition proposals, ensuring immediate liquidity and value for shareholders.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
