Lilly to Buy Adverum in Bet on Gene Therapy for Eye Disease (1)

Eli Lilly & Co. agreed to buy Adverum Biotechnologies Inc., a company working to treat blindness, in a deal that ultimately could be worth $261.7 million as it continues a push into gene therapies.

Lilly plans to buy the biotech for $3.56 a share in cash plus rights to future potential payments that could boost the value to $12.47 a share, the companies said in a statement.

The biotechnology company’s shares were up 4.6% at 10:21 am on Friday as investors’ enthusiasm was muted over the lack of a larger premium. They closed at $4.18 per share on ...