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INDIANAPOLIS - Eli Lilly and Company (NYSE:LLY), a pharmaceutical giant with a market capitalization of $717 billion and rated "GREAT" on InvestingPro’s Financial Health Score, has successfully completed its tender offer for Verve Therapeutics, Inc. (NASDAQ:VERV), with approximately 55.7% of Verve’s outstanding shares tendered by the expiration deadline on Wednesday, the companies announced Thursday.
Shareholders who tendered their shares will receive $10.50 per share in cash plus one non-tradable contingent value right that could provide up to an additional $3.00 per share upon achievement of specified milestones.
Lilly said all conditions of the offer have been satisfied, and it has accepted for payment all 49,882,464 shares that were validly tendered. The acquisition is expected to be completed on Friday.
The deal brings Verve’s gene editing technology for cardiovascular disease treatment into Lilly’s portfolio, further strengthening the company’s position as a prominent player in the pharmaceuticals industry with impressive 36% revenue growth over the last twelve months. Verve’s development programs target three lipoprotein drivers of atherosclerosis through gene editing approaches designed to permanently turn off specific genes in the liver. According to InvestingPro’s analysis, which offers 13 additional valuable insights about Lilly’s performance and prospects, the company currently trades above its Fair Value.
Verve’s lead program, VERVE-102, focuses on turning off the PCSK9 gene to treat familial hypercholesterolemia and atherosclerotic cardiovascular disease patients with high LDL cholesterol levels. The company is also developing VERVE-201 and VERVE-301, which target different genes related to cardiovascular health.
For the transaction, Kirkland & Ellis LLP served as legal counsel to Lilly, while Verve was advised by financial advisors Centerview Partners LLC and Guggenheim Securities, LLC, with Paul, Weiss, Rifkind, Wharton & Garrison LLP acting as legal counsel.
This article is based on a press release statement from the companies.
In other recent news, Eli Lilly has been the focus of several analyst updates and regulatory approvals. The U.S. Food and Drug Administration approved a new dosing schedule for Eli Lilly’s Alzheimer’s drug, Kisunla, which significantly reduces certain side effects while maintaining efficacy. Guggenheim has raised its price target for Eli Lilly to $942, maintaining a Buy rating, and anticipates second-quarter Mounjaro sales to reach $4.49 billion, slightly below some consensus estimates. Meanwhile, BMO Capital reiterated an Outperform rating with a $900 price target, noting the potential for early interim analysis in the company’s Alzheimer’s trial.
JPMorgan remains optimistic, reiterating an Overweight rating with a $1,100 price target, expecting strong second-quarter results driven by Mounjaro and Zepbound. UBS continues to support Eli Lilly with a Buy rating and a $1,050 price target, highlighting the company’s leadership in the obesity treatment market. UBS also projects that sales for Zepbound could exceed consensus expectations by about 15%, while Mounjaro sales are expected to align with market forecasts. These developments suggest that analysts are generally positive about Eli Lilly’s prospects in the near term.
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