Eli Lilly (LLY) Enters Gene-Editing Space with Verve Therapeutics Acquisition

Eli Lilly (LLY) is entering the fast-growing gene editing space with its $1.3 billion acquisition of Verve Therapeutics (VERV).

VERV stock nearly doubled on June 17 as news broke that pharmaceutical giant Eli Lilly is buying the gene-editing company. The two companies were already partners on a handful of treatments for cardiovascular disease.

Eli Lilly has agreed to pay $10.50 per share of VERV stock, totaling $1 billion. The company also agreed to pay an additional $3 per share in a contingent value right. Verve Therapeutics’ stock rose an astounding 81.5% on news of the takeover. LLY stock fell 2%.

New Frontiers

Many doctors, scientists and analysts see gene editing as a new frontier in medicine, one that is likely to get a boost from advances in artificial intelligence (AI). Senior management at Eli Lilly was likely impressed with Verve Therapeutics’ clinical trial results for its drug VERVE-102, which blocks a gene that causes high cholesterol.

A recent clinical trial showed the gene editing lowered cholesterol by an average of 53%. There were also no safety concerns found during the trial. Eli Lilly first partnered with Verve Therapeutics in 2023, paying $60 million to co-develop treatments aimed at reducing incidence of heart attack, stroke, and other cardiovascular problems.

Eli Lilly also previously paid $250 million for the opt-in rights to three of Verve’s gene-editing programs.

Is LLY Stock a Buy?

The stock of Eli Lilly has a consensus Strong Buy recommendation among 20 Wall Street analysts. That rating is based on 17 Buy, two Hold, and one Sell recommendations issued in the last 12 months. The average LLY price target of $997.60 implies 23.53% upside from current levels.

Read more analyst ratings on LLY stock