Lilly agrees to buy hearing-loss gene therapy company Akouos for up to $610 million

Eli Lilly/AK-OTOF (Akouos)

Lilly agreed to acquire Akouos for $12.50 a share in cash, a 78% premium, plus a contingent value right worth up to $3 a share. Akouos's lead program, AK-OTOF, was still preclinical: an AAV gene therapy meant as a one-time treatment for OTOF-related deafness.

• Up to $610 million in total including the contingent payments.
• One $1 payment depended on dosing the fifth AK-OTOF patient by the end of 2024.
• Another $1 is tied to dosing the first patient in a Phase 3 trial, or FDA approval, by December 31, 2026.
• Akouos estimated about 200,000 people have OTOF-mediated hearing loss.