By Colin Kellaher


Shares of Akouos Inc. took flight on Tuesday after the genetic-medicine company agreed to be acquired by Eli Lilly & Co. at a hefty premium.

Eli Lilly said it would pay up to $15.50 a share in cash for Akouos, more than double Monday's closing price of $7.01 for the Boston company, which is developing gene therapies for the treatment of inner-ear conditions, including sensorineural hearing loss.

The deal includes an initial $12.50 a share, along with up to $3 a share payable with the achievement of certain Akouos product milestones.

Indianapolis-based Eli Lilly said the Akouos deal, worth up to $610 million including the contingent payments, builds on its efforts to expand in gene therapy.

Eli Lilly last year shelled out an initial $880 million to buy Prevail Therapeutics, which is working to develop gene therapies for patients with neurodegenerative diseases, and earlier this year unveiled plans to invest about $700 million to build a new facility in Boston as part of the launch of the Lilly Institute for Genetic Medicine.

Akouos shares were changing hands at $13.02, up 86%, while Eli Lilly shares edged up 0.1% to $333.14.


Write to Colin Kellaher at colin.kellaher@wsj.com


(END) Dow Jones Newswires

10-18-22 1031ET