The proposed acquisition, valued at around $487m plus a contingent value right for up to $610m, is expected to advance the gene therapies that aim to restore, improve, and preserve hearing for patients living with hearing loss
Lilly Corporate Centre in Indianapolis, Indiana. (Credit: Momoneymoproblemz/Wikipedia)
US-based pharmaceutical company Lilly has signed a definitive agreement to acquire precision genetic medicine company Akouos for about $487m.
Under the terms of the agreement, Lilly will acquire all of the outstanding shares of Akouos at a price of $12.50 per share in cash, totalling around $487m.
It will also purchase one non-tradeable contingent value right per share (CVR) that promises an additional $3 in cash, at a price of up to $15.50 per share, for a total of $610m.
The transaction, which has been approved by the boards of directors of both companies, is expected to close in the fourth quarter of 2022.
Its closing is subject to customary closing conditions, including receipt of required antitrust clearance and the tender of a majority of the outstanding shares of Akouos’s common stock.
Lilly Institute for Genetic Medicine co-director and genetic medicine senior vice president Andrew C Adams said: “We are honoured to work with the talented team at Akouos who are breaking new ground in the science of treating hearing loss.
“We believe that with Lilly’s resources, global reach, and growing capabilities in gene therapy, we can help Akouos fulfil their mission of making healthy hearing available to all.”
Akouos is engaged in developing a portfolio of advanced adeno-associated viral gene therapies to treat inner ear conditions, including sensorineural hearing loss.
The company has expertise in otology, inner ear drug delivery, and gene therapy.
Its lead product candidate, AK-OTOF, is a gene therapy intended for the treatment of hearing loss due to mutations in the otoferlin gene (OTOF).
The other programmes in the company’s pipeline will cover multiple inner ear conditions such as Usher Type 3A, monogenic deafness and hearing loss, and vestibular schwannoma.
Kirkland & Ellis served as legal counsel to Lilly, while Wilmer Cutler Pickering Hale and Dorr served as legal counsel and Centerview Partners as the sole financial advisor to Akouos on the transaction.
Akouos co-founder, president, and chief executive officer Emmanuel Simons said: “I am proud of the commitment and passion of our team, which has established Akouos as a pioneer in inner ear genetic medicine.
“Joining Lilly, a company that shares our purpose to make life better for people around the world, will help us accelerate the development of a broad pipeline of inner ear genetic medicines.”