Verve Therapeutics stock nearly doubled — and sparked a rally in shares of other gene-editing companies — after Eli Lilly agreed to buy it for up to $1.3 billion.
The two companies were already partnered on a handful of one-time treatments for cardiovascular diseases. Verve's leading program would use gene editing to permanently turn off the PCSK9 gene. The gene makes a protein that, when elevated, leads to high cholesterol.
Lilly will pay $10.50 per share of Verve stock, totaling $1 billion. The company also agreed to pay an additional $3 per share in a contingent value right. Lilly will pay the CVR when the first patient receives Verve's leading drug in a U.S. Phase 3 study for atherosclerotic cardiovascular disease.
Verve Therapeutics shares catapulted 81.5% to 11.38. Eli Lilly stock slipped 2%, closing at 791.20.
Shares of other gene-editing companies Intellia Therapeutics, Crispr Therapeutics and Beam Therapeutics also advanced on the news. Editas Medicine reversed an early gain and closed with a nearly 1% loss.
'A Win For Verve Shareholders'
William Blair analyst Myles Minter says the deal makes a lot of sense for Verve shareholders.
"Although we believe Eli Lilly is getting a bargain here (our fair value was $30.86 per share prior), the 115% premium (assuming full CVR payout) is still a win for Verve shareholders and the gene editing space more broadly, which has been under significant macro pressure in a difficult funding environment," he said in a client note.
Lilly was likely impressed with Verve Therapeutics' recent clinical readout for its drug, VERVE-102, he said. In April, Verve said a single infusion of its PCSK9-blocking gene-editing treatment lowered LDL cholesterol by an average of 53% and a maximum of 69%.
Importantly, there were no safety concerns. An earlier iteration of Verve's treatment, VERVE-101, reduced LDL cholesterol by up to 84% in one study. But one patient died of cardiac arrest five weeks after treatment and another had a heart attack the day following. Later, Verve plummeted again after one patient experienced elevated liver enzymes and low blood platelets.
VERVE-102 uses a different delivery system than VERVE-101.
Lilly's Close Ties To Verve
Despite the setbacks, Eli Lilly bought into Verve's programs in 2023.
That year, Eli Lilly paid $60 million to codevelop Verve Therapeutics' lipoprotein A program. High levels of lipoprotein A, or Lp(a) are tied to increased risk of heart attack, stroke or other cardiovascular problems.
Lilly also paid $250 million for the opt-in rights to three of Verve's gene-editing programs. It was due this year to make a decision about actually opting into those programs.
Eli Lilly likely wanted "greater control over later-stage clinical development," Minter said. "We had long thought the deal would be restructured, and hence we believe today's acquisition news also solves for this issue favorably to Verve shareholders."
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