Eli Lilly to Acquire Verve Therapeutics in $1.3 Billion Deal

• Eli Lilly to acquire Verve Therapeutics for up to $1.3 billion
• Verve's therapies use base editing to target cholesterol-related genes
• Deal strengthens Lilly's pipeline beyond weight-loss and diabetes drugs

Eli Lilly announced its acquisition of gene-editing startup Verve Therapeutics in a deal with up to a potential of $1.3 billion, expanding its pipeline, which now also features weight-loss medications and its blockbuster diabetes drugs.

Under the agreement, Lilly will buy shares of Verve for $10.5 per share, representing a 67.50% premium to Verve's most recent closing price, along with milestone-based payments to a maximum of $300 million. The agreement has nearly $1 billion in upfront payments included.

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Following the news of the merger, Verve's stock rose 76% in premarket trading and Lilly's shares fell slightly. The companies had previously partnered to develop the first once in human gene-editing therapies using Verve's base editing platform to lower cholesterol for people with heart disease. Verve's lead therapies utilize base editing - an editing technique that allows for precise changes to specific letters of DNA, turning off cholesterol making genes.

Verve's VERVE-102 is in early-stage trials and is used in patients with familial hypercholesterolemia, a genetic disorder associated with dangerously high cholesterol levels and early coronary disease. Verve's therapies target three major genes: PCSK9, ANGPTL3 and LPA. Although some analysts are skeptical about any substantial market for new genetic cholesterol treatments, the acquisition signifies Lilly's continued commitment to advancing next-generation genetic medicines.