Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
Verve Therapeutics (NASDAQ: VERV) shares are experiencing dramatic premarket gains, surging over 78% to $11.18 after closing at $6.27 on Monday. The biotech company’s stock is responding to reports that pharmaceutical giant Eli Lilly is in advanced negotiations to acquire the gene editing specialist for approximately $1.3 billion. The Financial Times broke the story late Monday, citing sources close to the matter, suggesting a deal could be announced as early as this week.
Eli Lilly’s Strategic Move: Why Verve Makes Sense
The rumored acquisition represents a natural progression of the existing partnership between Eli Lilly and Verve Therapeutics that began in mid-2023. Initially focused on advancing Verve’s in vivo gene editing program targeting lipoprotein(a) for treating atherosclerotic cardiovascular disease, the collaboration expanded later that year when Lilly paid $200 million upfront to acquire rights to Verve’s PCSK9 and ANGPTL3 programs, plus an undisclosed third cardiovascular target.
According to the Financial Times report, Lilly will pay nearly $1 billion upfront with an additional $300 million tied to achieving certain milestones.
The timing appears strategic, coming just ahead of Lilly’s upcoming opt-in decision on Verve’s leading pipeline candidate, VERVE-102. BMO Capital Markets analysts noted that the transaction “makes sense” given the close ties between the companies and Lilly’s substantial investment in Verve’s technology. The deal would value Verve at approximately $14.50 per share, representing about double its Monday closing price, though analysts had previously set a higher target of $20 per share.
For Lilly, this acquisition continues an active year of business development following January’s agreement to buy Scorpion Therapeutics’ PI3Kα inhibitor program for up to $2.5 billion and the recent purchase of SiteOne Therapeutics for up to $1 billion to expand its pain portfolio. The Verve deal would strengthen Lilly’s position in the rapidly evolving gene editing space, particularly for cardiovascular applications.
Join our Telegram group and never miss a breaking digital asset story.
VERV Stock Performance Skyrockets in Premarket Amid Eli Lilly Deal Reports
VERV shares opened Tuesday’s premarket session at $6.25, quickly surging to $11.18, representing a remarkable 78.31% gain from Monday’s close of $6.27.
The stock had shown modest regular-hours performance on Monday, gaining just 1.79%, but the acquisition rumors have dramatically altered investor sentiment. Trading volume reached 2.2 million shares, significantly above the average volume of 3.49 million, indicating heightened institutional and retail interest.
The biotech stock has demonstrated strong year-to-date performance with an 11.17% gain, substantially outperforming the broader market’s 2.58% return. Over the past year, VERV has delivered 15.68% returns to shareholders, though the stock remains well below its historical highs with a 52-week range of $2.87 to $9.31. The company maintains a market capitalization of approximately $559 million based on Monday’s closing price.
Analyst sentiment appears increasingly bullish, with recent coverage suggesting significant upside potential. Wall Street analysts maintain an average price target of $24.33, indicating substantial room for growth even after the premarket surge.
The stock recently reclaimed its 200-day moving average, a technical indicator that many traders view as a positive momentum signal for continued price appreciation.
Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.
The post Why are Verve Therapeutics Shares Skyrocketing in Premarket Trading Today? appeared first on Tokenist.