Aaron McDade
2 min read
In This Article:
-
Shares of Verve Therapeutics soared 75% Tuesday as Eli Lilly said it would acquire the gene-editing startup.
-
The deal values Verve at about $1.3 billion, with some of Eli Lilly's potential payments dependent on certain trial milestones.
-
Verve has an early stage clinical trial of a treatment to lower cholesterol and treat cardiovascular conditions.
Shares of Verve Therapeutics (VERV) skyrocketed 75% Tuesday morning after Eli Lilly (LLY) announced that it would acquire the gene-editing startup for about $1.3 billion.
Eli Lilly said it will pay $10.50 per share to Verve shareholders initially, with a $3-per-share contingent value right (CVR) potentially paid out if Verve treats at least one patient with gene-editing medicine VERVE-102 for atherosclerotic cardiovascular disease (ASCVD) in a Phase 3 clinical trial within a decade of the deal's closing or termination of the CVR. The transaction is expected to close in the third quarter this year.
VERVE-102 currently "is being evaluated in a Phase 1b clinical trial study and has been granted Fast Track designation by the U.S. Food and Drug Administration," Lilly said.
"Verve was founded with one mission in mind: transform the treatment of cardiovascular disease from chronic care to a one-dose future," Verve CEO Dr. Sekar Kathiresan said. "In just seven years, our team has progressed three in vivo gene editing products, with two currently in the clinic. Now, we will take the next steps in the drug development journey together with an ideal strategic partner in Lilly."
The Financial Times reported late Monday that the companies were close to a deal.
Eli Lilly shares, which entered Tuesday up roughly 5% this year, were down less than 1% in recent trading. With today's sharp gains, Verve stock has nearly doubled in 2025.
UPDATE—This article has been updated with the latest share price information.
Read the original article on Investopedia
