Eli Lilly & Co. announced that it will buy Verve Therapeutics Inc., a gene editing biotech company, for ≈ $1.3 billion. Lilly is moving toward growth by investing in innovative treatments in the early stages of development, and not just pharmaceuticals.
As per the deal, Lilly would make the payment with an upper limit of $13.50 a share - $10.50 in cash and $3 a share through a non-tradable contingent value right tied to performance milestones. After the news, Verve’s shares rose almost 112% in premarket trading, and Lilly shares dropped by about 1%.
Lilly is continuing to cash in on its successful weight-loss drug Zepbound (which is protected by patent for still over 10 more years) while planning ahead. By looking at experimental therapies that are phase 1 and 2 Lilly wants lower-cost acquisition today that can pay off later.
This acquisition builds on an existing partnership between Lilly and Verve focused on a gene-editing program to lower lipoprotein(a)—a major contributor to arterial plaque buildup. With this deal, Lilly will gain full ownership of the program.
Lilly has made several strategic acquisitions this year, including up to $2.5 billion for a cancer drug from Scorpion Therapeutics and a $1 billion purchase agreement for SiteOne Therapeutics, which is developing novel pain treatments.
Verve stands out in the gene-editing space by aiming at common conditions, rather than rare diseases. Its therapy, which delivers gene edits using lipid nanoparticles, offers a cost-effective approach and could become the first in vivo gene-editing treatment for a large patient population.
According to Ruth Gimeno, Lilly’s vice president of diabetes and metabolic R&D, this move signals the company’s strong belief in the future of gene editing.
The transaction is expected to close in the third quarter of this year.