Adverum (ADVM) Stock Skyrockets on News of Lilly’s $12.47/Share Gene Therapy Deal!

24 October 2025

Lilly Acquisition Deal: On Oct. 24 Eli Lilly announced it will acquire Adverum Biotechnologies for $3.56 cash per share plus a CVR worth up to $8.91, implying a total of $12.47 per share if milestones are met ^[1] ^[2]. The agreement gives Lilly control of Adverum’s lead gene therapy Ixo-vec (Phase 3 wet-AMD candidate) and includes a secured loan of up to $65 million to fund Adverum’s trials before closing ^[3] ^[4]. Adverum’s CEO Laurent Fischer hailed the deal: “We are excited about the potential to join Lilly… to deliver a transformative One and Done™ therapy” ^[5]. Lilly’s Andrew Adams added that “Ixo-vec has the potential to transform wAMD treatment… to a convenient one-time therapy” ^[6].
Stock Price Reaction: ADVM shares leapt ~17% on Oct. 24 after the news ^[7]. On Oct. 23 (Thursday) ADVM closed at $4.18 ^[8], and briefly traded near $4.90 in premarket Friday ^[9]. For context, the stock had been sliding in recent days – from around $5.32 on Oct. 9 to $4.18 by Oct. 23 ^[10] – so the takeover news provided a sharp jolt upward. Even after Friday’s surge, ADVM remains well below the deal’s $12.47 maximum, reflecting the contingent nature of the CVR payments ^[11] ^[12].
Pipeline & Trial Updates: Adverum’s lead program is Ixo-vec, a one-time AAV gene therapy for wet age-related macular degeneration. Screening for the pivotal Phase 3 ARTEMIS trial was completed in Sept. 2025 – seven months after start – and full enrollment is now expected by Q4 2025 (earlier than the previous Q1 2026 goal), with topline data accelerated to Q1 2027 ^[13]. In parallel, two-year follow-up data from the Phase 2 LUNA study are due in late 2025 ^[14]. Adverum also plans a second registrational trial (AQUARIUS) for Ixo-vec once funding allows ^[15]. All this has won fast-track and RMAT designations from FDA (and PRIME in Europe) for Ixo-vec ^[16], underscoring the high hopes for its “one-and-done” potential in the ~$10B wet-AMD market.
Financial Health & Runway: Adverum had been cash-strapped. At June 30, 2025 the company held only $44.4M ^[17], down from $125.7M at year-end 2024 – reflecting heavy spending on the ARTEMIS trial. Management warned this cash would fund operations only into Q4 2025 ^[18]. In fact, industry press noted Adverum’s ~$44M would have been “running dry” by October if no new funding arrived ^[19]. The Lilly deal addresses this: under the merger Adverum can draw on a $65M loan (secured by company assets) to support ongoing trials until closing ^[20]. (Absent the deal, the board had explored other funding or partnerships but faced limited options.) Adverum also raised $10M in August 2025 via a private placement with Frazier Life Sciences ^[21], but the Lilly infusion was viewed as the last major funding lifeline.
Analyst Consensus & Targets: Before the takeover news, analysts were divided. MarketBeat reports a consensus “Hold” rating (1 sell, 1 hold, 3 buy) with an average 12-month target of about $19.75 ^[22]. Price targets ranged widely – for example, Chardan Capital had a buy rating with a $33 target ^[23], while Mizuho’s outperform rating carried only a $12 target ^[24]. This reflects the high-risk/high-reward nature of Adverum: bullish forecasts hinge on Ixo-vec’s market success and the deal closing, while bearish views point to funding needs and trial risks. (For reference, Zacks had targets spanning $3.00 to $33.00 pre-deal.)
Bullish vs. Bearish Views: On the bull side, proponents emphasize the transformative potential of Ixo-vec and the strong clinical momentum. Adverum management has touted retina specialist enthusiasm for a true “one-and-done” wet-AMD therapy ^[25]. The Lilly acquisition itself signals big-pharma confidence. On the bear side, skeptics caution that Adverum’s valuation is capped by unmet milestones: without FDA approval or blockbuster sales, shareholders only get $3.56 per share ^[26]. As one biotech outlet noted, Lilly’s offer was slightly below the $4.18 close on Oct. 23 ^[27]. They also remind investors that gene-therapy trials carry safety and execution risks (past Adverum trials had issues with inflammation) and the cash burn is high ^[28] ^[29].
Industry Context & Outlook: The acquisition underscores a broader trend of big players shoring up gene therapy pipelines. Ixo-vec’s expedited FDA/EMA designations reflect intense interest in one-time ocular treatments. Competition is heating up: rival companies and new drug classes (e.g. longer-acting anti-VEGF injections or tyrosine kinase inhibitors) are in development ^[30]. For ADVM shareholders, key upcoming catalysts include LUNA 2-year data (Q4 2025) and the start of the AQUARIUS trial once funds arrive ^[31]. Technically, indicators were mixed (some short-term oversold signals pre-news); sentiment shifted positive on the deal. In sum, ADVM has run up from mid-$4 to near $5 on optimism – but the stock still trades well below the deal’s max price, so its future will hinge on the Artеmis results and milestone successes ^[32] ^[33].

Sources: Official press releases and filings ^[34] ^[35], Reuters, Investing.com, Fierce Biotech ^[36], and analyst reports ^[37] ^[38]. All data as of market close Oct. 23, 2025 and news through Oct. 24, 2025.

Adverum Biotechnologies Gains Momentum in Gene Therapy (OIS@AAO 2016)

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Mateusz Kaczmarek Latest posts

A technology and finance expert writing for TS2.tech. He analyzes developments in satellites, telecommunications, and artificial intelligence, with a focus on their impact on global markets. Author of industry reports and market commentary, often cited in tech and business media. Passionate about innovation and the digital economy.

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Adverum (ADVM) Stock Skyrockets on News of Lilly’s $12.47/Share Gene Therapy Deal

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