Eli Lilly Buys Verve Therapeutics: Aims To Permanently Lower Your Cholesterol

(17min)

Summary

  • Eli Lilly is acquiring Verve Therapeutics for $10.5/share plus a potential $3/share CVR, totaling up to $13.5/share.
  • The deal values Verve at up to $1.3 billion, reflecting a 113% premium to its 30-day average price.
  • The CVR payout depends on a key milestone: dosing the first U.S. Phase 3 patient with VERVE-102 for ASCVD within 10 years.
  • VERV shares surged over 75% on the news, trading at $11.10 as investors reacted to the significant acquisition premium.
  • This is an exciting deal for LLY - a shot at permanently lowering cholesterol with a "one and done" gene therapy, worth tens of billions in revenues one day perhaps, but realistically, an approval shot is a long way away, due to safety challenges.

Sugar in the blood.

Sarah Silbiger

Investment Overview

News broke pre-market today that Eli Lilly and Company (NYSE:LLY), the world's largest Pharma by market cap, is set to acquire Verve Therapeutics, Inc. (NASDAQ:VERV), a company it is already

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This article was written by

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Edmund Ingham is a biotech consultant. He has been covering biotech, healthcare, and pharma for over 5 years, and has put together detailed reports of over 1,000 companies. He leads the investing group Haggerston BioHealth.

The group is for both novice and experienced biotech investors. It provides catalysts to look out for and buy and sell ratings. It also provides product sales and forecasts for all the Big Pharmas, forecasting, integrated financial statements, discounted cash flow analysis and market by market analysis. Learn more.

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