Eli Lilly to acquire Akouos for up to about $610 million and develop gene therapies for hearing loss

Eli Lilly and Co.
LLY,
+0.41%
said Tuesday it has entered an agreement to acquire Akouos Inc.
AKUS,
-5.14%,
a company developing a portfolio of viral gene therapies for the treatment of inner ear conditions including hearing loss, for up to $610 million in cash. Under the terms of the deal, Akouos shareholders will receive $12.50 a share in cash, plus one non-tradeable contingent value right per share that entitles the holder to receive up to an additional $3.00 in cash, for a total consideration of up to $15.50 per share in cash without interest, or an aggregate of $610 million. The CVR will be paid based on the reaching of certain milestones in developing treatments for hearing loss and gaining regulatory approval for them by or before December 31 of 2026. The deal is expected to close in the fourth quarter. The price is equal to a roughly 121% premium over the 30-day volume-weighted average trading price of Akouos’s common stock through Monday’s close. The stock soared 86% premarket on the news. The deal is Lilly’s second in gene therapy after the purchase of Prevail Therapeutics in 2021, said Daniel Skovronsky, Lilly’s chief scientific and medical officer, in a statement. Lilly shares rose 1.3% premarket and have gained 20% in the year to date, while the S&P 500
SPX,
+2.65%
has fallen 23%.