Eli Lilly and Company announced a definitive agreement to buy Akouos, a precision medicine company, for $487 million Tuesday morning.

The deal has been approved by the board of directors for both companies and is expected to close by the end of the year. 

The transaction moves Lilly further into the hearing loss space, where Akouos has been developing a portfolio of adeno-associated viral gene therapies for treating inner ear conditions. 

Akouos’ lead product candidate is AK-OTOF, a gene therapy treatment for hearing loss due to mutations in the otoferlin gene. The rest of the company’s treatment pipeline includes products like AK-CLRN1, GJB2, and AK-antiVEGF. 

“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,” Andrew C. Adams, Ph.D., SVP of genetic medicine and co-director of the Institute for Genetic Medicine at Lilly, said in a statement

Following the close of the deal, Lilly said it will be reflected in the company’s financial results and guidance going forward. Lilly is expected to release its Q3 earnings report on November 1.