(Reuters) -Eli Lilly said on Friday it would acquire gene therapy developer Adverum Biotechnologies in a deal valued at up to $261.7 million, aiming to strengthen its pipeline with an experimental eye disease treatment.

The deal will give Lilly access to Adverum’s gene therapy candidate, Ixo-vec, and underscores the U.S. drugmaker’s focus on such treatments.

Lilly has offered $3.56 for each share of Adverum held, totaling about $74.7 million in cash.

Shareholders may also get up to $8.91 per share in milestone payments, contingent on U.S. approval of Ixo-vec within seven years and achieving more than $1 billion in annual global sales within 10 years of deal close.

This brings the total potential payout to $12.47 per share. Adverum shares closed at $4.18 on Thursday. They rose 7.7% to $

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