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INDIANAPOLIS/BOSTON - Eli Lilly and Company (NYSE: LLY), a pharmaceutical giant with a market capitalization of $725 billion and an impressive 81.7% gross profit margin according to InvestingPro data, announced Tuesday it will acquire Verve Therapeutics (NASDAQ: VERV) for $10.50 per share in cash, with potential additional payments of up to $3.00 per share through a contingent value right.
The deal values Verve at approximately $1.0 billion upfront, with a total potential value of $1.3 billion if development milestones are met. The purchase price represents a 113% premium over Verve’s 30-day volume-weighted average trading price ending June 16. For Lilly, which has demonstrated strong revenue growth of 36.38% over the last twelve months, this acquisition represents just a fraction of its substantial cash flow capacity.
Verve is developing gene editing medicines targeting cardiovascular disease that potentially require only a single dose. The company’s lead program, VERVE-102, targets the PCSK9 gene linked to cholesterol levels and is currently in Phase 1b clinical trials. The U.S. Food and Drug Administration has granted Fast Track designation to the program.
"VERVE-102 has the potential to be the first in vivo gene editing therapy for broad patient populations and could shift the treatment paradigm for cardiovascular disease from chronic care to one-and-done treatment," said Ruth Gimeno, Lilly group vice president of Diabetes and Metabolic Research and Development, in a statement based on the press release.
The acquisition is expected to close in the third quarter of 2025, subject to customary conditions including the tender of a majority of Verve’s outstanding shares. Stockholders representing approximately 17.8% of Verve’s outstanding shares have already agreed to tender their shares.
Verve’s board of directors has unanimously recommended that stockholders tender their shares in the offer.
The transaction comes as Lilly seeks to expand its presence in genetic medicines and cardiovascular disease treatments. Verve has three in vivo gene editing products in its pipeline, with two currently in clinical trials. Lilly’s financial strength, evidenced by its "GREAT" overall health score on InvestingPro, positions it well for this strategic expansion. Investors seeking deeper insights into Lilly’s growth strategy can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
In other recent news, Eli Lilly has announced that its obesity medication Zepbound will soon be available in single-dose vials for $499 per month through its Self Pay Journey Program, regardless of insurance status. This pricing applies to the highest approved doses, with shipments expected to begin in early August. Eli Lilly’s stock has seen analysts from UBS maintain a Buy rating with a price target of $1,050, highlighting a trend of vial-splitting among patients to reduce costs. Meanwhile, Bernstein SocGen Group has reiterated an Outperform rating and a $1,100 price target on Eli Lilly stock, citing strong performance of Zepbound and its competitive edge over Novo Nordisk’s Wegovy.
Eli Lilly is also preparing for key presentations at the upcoming American Diabetes Association’s 85th Annual meeting. The company plans to present significant data on its clinical trials, including the ACHIEVE-1 study and new data on bimagrumab and Eloralintide. These developments are being closely monitored by analysts and investors alike. UBS has also noted that a forthcoming CVS formulary change, effective in July 2025, will prefer Wegovy over Zepbound, which could impact Eli Lilly’s market dynamics. Despite this, UBS’s continued endorsement suggests confidence in Eli Lilly’s performance amid these market shifts.
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