The human arsenal is known for many different things, but most of all, it’s known for expanding on a consistent basis. This ever-improving dynamic has allowed us to hit upon some huge milestones, with technology appearing as a major member of the stated group. The reason why technology enjoys such an esteemed stature is largely down to its unprecedented skill-set, which introduced us to a reality that we couldn’t have imagined otherwise. Nevertheless, if we look a little bit closer, it becomes clear how the whole runner was also very much inspired by the way we used those skills across a real-world setting. The latter component was, in fact, what gave the creation a spectrum-wide presence, including a very well-timed timed appearance on our healthcare block. Technology’s foray into healthcare was so perfectly-timed because it came right when the sector was beginning to struggle against its own obsolete structure. Fortunately, this changed big time under the new regime, but even going that far, the newfound medtech concept will somehow continue to produce all the right goods. The same has turned more and more evident on the back of our recent progression, and a new acquisition should only make it bigger and better.
Eli Lily, the Indianapolis-based pharmaceutical giant, has officially acquired Akouos for a sizeable sum of $487 million. As per the agreed terms, Eli Lily will buy up all outstanding Akouos’ shares for $12.50 each, a figure which represents a 121% premium on the stock’s average price for the last 30 days. Beyond the stated figure, the deal also includes payments that are contingent on the achievement of clinical trial enrollment goals. Talk about the monetary value of this contingency bit, it can pay, at maximum, another $3 for every share, totaling up to an additional $123 million. The acquisition, interestingly enough, comes shortly after FDA gave Akouos the green light to begin trials for its lead therapy that treats inherited hearing loss. Dubbed as AK-OTOF, the stated therapy is designed for everyone whose hearing loss is caused by mutations to the OTOF gene. OTOF gene basically encodes a protein which enables the ear’s sensory cells to release tiny neurotransmitter vesicles that activate auditory neurons. Hence, people who have these OTOF mutations are, more often than not, born with a drastically reduced hearing ability. Now, even though the condition is said to affect more than 20,000 people in the US, there are no FDA-approved therapies for it yet, and that’s why Akouos’ progress in regards to the drug is so significant.
We dove into the importance of such a therapy, but how does it solves the problem? The drug employs an adeno-associated virus (AAV) to deliver a functioning version of the OTOF gene that encodes, as we discussed, the otoferlin protein. If all goes well, AK-OTOF should be able to kickstart a more sustainable production of otoferlin in the ear, therefore helping the world’s chances against inherited hearing loss. Apart from that, Akouos is also preparing definitive answers for conditions like Usher syndrome type 3A, vestibular schwannoma, and more.
From Eli Lily’s standpoint, the acquisition is another indication of its newfound focus on the gene therapy sphere. Before Akouos, the company had also shelled out $880 million to purchase Prevail Therapeutics, biotech whose most advanced gene therapy program is in early-stage clinical development for Parkinson’s disease. Hence, with two of the bigger gene therapy players in its corner, Eli Lily has the foundation to go ahead and make some noise in the stated space.
“We are honored to work with the talented team at Akouos who are breaking new ground in the science of treating hearing loss,” said Andrew C. Adams, Ph.D., senior vice president of genetic medicine and co-director of the Institute for Genetic Medicine, Lilly. “We believe that with Lilly’s resources, global reach, and growing capabilities in gene therapy, we can help Akouos fulfill their mission of making healthy hearing available to all.”
