Shares of small-cap gene therapy company Akouos (NASDAQ: AKUS) popped by as much as 87% in premarket trading Tuesday morning. The biotech's stock is racing higher this morning in response to an all-cash buyout agreement with pharma heavyweight Eli Lilly (NYSE: LLY). 

Lilly and Akouos reportedly agreed to a $487 million buyout ($12.5 per share), plus a contingent value right (CVR) option worth another $123 million (an additional $3 per share). The upfront portion of this deal represents a 78% premium over Akouos' closing price Monday afternoon.  

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Source Fool.com