Eli Lilly Acquires Adverum at $3.56 per Share, Expanding Gene Therapy Potential
Written by Emily J. Thompson, Senior Investment Analyst
Source: PRnewswire
- Successful Tender Offer: Eli Lilly, through its wholly-owned subsidiary Flying Tigers Acquisition Corporation, proposed to acquire all outstanding shares of Adverum at $3.56 per share, with approximately 64% of shares validly tendered by the expiration date of December 8, 2025, indicating strong market support for the transaction.
- Contingent Value Rights: Each share comes with a non-tradable CVR that grants shareholders the right to receive up to $8.91 in cash upon achieving specific milestones, enhancing the appeal of the offer and potentially providing additional returns for investors.
- Strategic Integration Opportunity: This acquisition enables Lilly to expand its capabilities in gene therapy, particularly in addressing age-related conditions, which is expected to drive innovation and enhance the company's competitive position in the biotechnology sector.
- Legal and Financial Support: Lilly has engaged Ropes & Gray LLP as legal counsel, while Adverum is advised by Aquilo Partners, L.P., ensuring a smooth transaction process and reflecting the commitment of both parties to the deal's success.
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.
