Eli Lilly Acquires Akouos in Approximately $487 Million Transaction

In a recent press release from Eli Lilly and Company, the company announced that it had completed the acquisition of Akouos. Earlier this year, on October 18, 2022, Lilly announced plans to acquire the company to accelerate gene therapy development for hearing loss. In the initial acquisition announcement, the company valued the transaction at $487 million and included “a contingent value right for an aggregate amount up to approximately $610 million.”

This acquisition has been developing over the past month and a half. Lilly recognized Akouos as a company working toward addressing hearing loss globally. In the October announcement, Lilly acknowledged Akouos as a leader in gene therapy for hearing loss, with its portfolio including a first-in-class adeno-associated viral gene therapy to treat inner ear conditions.

“Akouos brings more top-tier talent and an important pipeline to Lilly's Institute for Genetic Medicine that will further accelerate our work to advance genetic medicines for people living with difficult-to-treat diseases," said Andrew C. Adams, PhD, senior vice president of genetic medicine at Lilly and co-director of the Institute for Genetic Medicine, in the acquisition completion announcement. "We look forward to supporting and enabling the Akouos team to continue their ground-breaking work developing potential genetic medicines for inner ear conditions and to help fulfill the mission of making healthy hearing available to all."

According to the press release, Lilly purchased issued and outstanding shares of Akouos common stock for $12.50 per share — without interest and excluding taxes — and “one non-tradable contingent value right ("CVR" and, together with the Cash Consideration, the "Offer Price") per Share, which represents the contractual right to receive contingent payments of up to $3.00 per CVR, net to the stockholder in cash, without interest and less any applicable tax withholding, upon the achievement of certain specified milestones.”

This offer was valid through November 29, 2022. The merger, completed on December 1, was done without a stockholder meeting as allowed by section 251(h) of the General Corporation Law of the State of Delaware (the "DGCL"). Moving forward, Akouos will be a wholly-owned subsidiary of Lilly. The public will continue to monitor the outcomes of this merger and assess how it enhances hearing loss gene therapies.