Akouos inventory soars 87% as Lilly nabs listening to loss gene remedy developer

Eli Lilly (NYSE:LLY) is buying listening to loss gene remedy maker Akouos (NASDAQ:AKUS) for ~$487M plus contingent worth proper (CVR) value as much as $610M.

Below the settlement, Lilly will start a young supply to amass all of the excellent shares of Akouos for $12.50/ share in money, plus one CVR of as much as $3.00/share for an mixture of as much as $610M. The corporate famous that there could be no assurance that any funds might be made with respect to the CVR.

Akouos’ lead product candidate is AK-OTOF for which the corporate obtained clearance from the FDA in September to begin a section 1/2 trial to deal with pediatric sufferers with otoferlin gene (OTOF)-mediated listening to loss.

Lilly mentioned Akouos’ different applications embrace AK-CLRN1 for Usher Sort 3A, an autosomal recessive dysfunction characterised by progressive lack of each listening to and imaginative and prescient; GJB2 for a typical type of monogenic deafness and listening to loss; and AK-antiVEGF to deal with vestibular schwannoma.

“We imagine that with Lilly’s assets, international attain, and rising capabilities in gene remedy, we may also help Akouos fulfill their mission of creating wholesome listening to out there to all,” mentioned Andrew Adams, senior vp of genetic medication and co-director of the Institute for Genetic Drugs, Lilly.

Akouos’ board has advisable its stockholders to tender their shares.

Lilly mentioned sure Akouos stockholders, proudly owning ~26% of frequent inventory, agreed to tender their shares, topic to circumstances.

The transaction is predicted to shut in This autumn 2022, topic to antitrust clearance and the tender of a majority of Akouos’ inventory.

AKUS +87.30% to $13.13 premarket Oct. 18

LLY +0.64% to $334.88 premarket to Oct. 18