Eli Lilly and Co is going to acquire genetic medicine developer Akouos Inc for about USD 487 million in cash as the drugmaker company aims to bolster its arsenal of gene therapies that target a range of disabilities. Akouos is developing gene therapies for sensorineural hearing loss.

Shares of Akouos surged 84 per cent to trade 40 cents above Lilly’s offer price of USD 12.50 before the opening bell. The deal also includes a payment of USD 3 per share contingent on certain events related to drug trials and can potentially increase the transaction size to USD 610 million.

Eli Lilly (NYSE:LLY) has been striving to build its pipeline of gene therapies following the acquisition of Prevail Therapeutics (NASDAQ:PRVL) Inc for USD 1 billion last year. It announced a USD 700 million investment in a new research hub in Boston, Massachusetts, earlier this year that focuses on developing gene therapies.