Ventyx Biosciences (VTYX) stock rallied about 68% in Wednesday’s pre-market trading in reaction to a report by the Wall Street Journal about a potential acquisition of the clinical-stage biopharmaceutical company by Eli Lilly (LLY) for more than $1 billion. Citing people familiar with the matter, the report stated that Eli Lilly is in advanced talks to acquire Ventyx.
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Eli Lilly’s Potential Acquisition of Ventyx
Ventyx is focused on developing oral therapies for patients with inflammation-mediated cardiovascular and neurodegenerative diseases. The company’s pipeline includes a drug candidate in mid-stage testing for the treatment of cardiovascular disease associated with obesity.
Interestingly, Ventyx is developing two experimental drugs that aim to inhibit the out-of-control inflammatory activity. In fact, the report cited Jefferies analysts who said Eli Lilly’s rivals, such as Roche Holding (RHHBY) and Novo Nordisk (NVO), have shown interest in this emerging category. Consequently, the acquisition of Ventyx would expand Eli Lilly’s portfolio of autoimmune and obesity treatments and enable it to compete in this new space.
UBS Assigns a Buy Rating to Ventyx Stock
Meanwhile, UBS analyst Michael Yee initiated coverage of Ventyx Biosciences stock with a Buy rating and a price target of $20. The analyst cited “a differentiated NLRP3 pipeline targeting cardiometabolic and CNS indications” for his bullish stance.
Yee highlighted that Phase II results for VTX3232 in Parkinson’s and heart disease look strong, showing it hits the target, lowers key biomarkers, and gives early signs of clinical benefit. This reduces the program’s risk and hints at significant market potential in neurodegenerative and cardiovascular diseases. Moreover, Yee thinks that Sanofi’s (SNY) Right of First Negotiation agreement on ‘3232 also supports the value of VTYX.
The analyst also sees more upside from the ‘2735 drug for recurring pericarditis, with Phase II results expected in Q1 2026. Yee contends that the market is not fully valuing the significant sales potential of this drug.
Is VTYX a Good Stock to Buy?
With six Buys and one Hold recommendation, Ventyx Biosciences stock scores a Strong Buy consensus rating. The average VTYX stock price target of $14.17 indicates 41% upside potential.
