Eli Lilly (NYSE:LLY) has announced an acquisition of Akouos (NASDAQ:AKUS) that is expected to be completed in Q4 of 2022.
Under the terms of the agreement, Eli Lilly has agreed to give Akouos $610.00 million in cash in exchange for AKUS stock.
About The Companies Involved Eli Lilly is a drug firm with a focus on neuroscience, endocrinology, cancer, and immunology. Lilly's key products include Verzenio for cancer; Jardiance, Trulicity, Humalog, and Humulin for diabetes; and Taltz and Olumiant for immunology.
Akouos Inc is a genetic medicine company focused on developing gene therapies that restore, improve, and preserve hearing. The company is involved in developing potential genetic medicines for a variety of inner ear disorders.
How An Acquisition Works An acquisition is when one company, called the acquiring company, buys most or all of another company's, or target company's, shares to gain ownership. Buying more than 50% of a company's stock allows the the acquirer to make decisions without the approval of the company's shareholders.
An acquisition can potentially lead to a merger with the parent company, which makes it similar to a merger. This is why the two terms are commonly grouped together as mergers and acquisitions (M&A). However, in a merger, the leadership & operations of both companies usually change dramatically, while during an acquisition this is less likely to happen.
Make sure to follow our mergers & acquisitions calendar to stay-up-to-date on the most recent M&A deals.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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