Pharma giant Eli Lilly (LLY) is reportedly in advanced talks to acquire gene editing company Verve Therapeutics (VERV), the Financial Times reported. Verve Therapeutics stock rallied 75% in Monday’s after-hours trading in reaction to the news. If finalized, the deal would boost Eli Lilly’s pipeline of experimental drugs.
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The deal could be announced as early as this week, if the talks don’t fail.
More on Eli Lilly’s Potential Acquisition of Verve
According to sources, Eli Lilly would acquire Verve Therapeutics in a deal valued at up to $1.3 billion, including $1 billion in upfront payment and $300 million contingent on achieving certain clinical milestones. This deal values Verve at nearly double its stock price, with the company having a market capitalization of $559 million at the end of regular trading on Monday.
Earlier this year, Verve disclosed encouraging phase-one clinical data for its lead gene therapy treatment for cholesterol. Interestingly, it already has a partnership with Eli Lilly. This potential acquisition reflects Eli Lilly’s interest in boosting its portfolio of experimental medicines rather than commercial-stage drugs. In January, LLY announced the acquisition of cancer biotech Scorpion Therapeutics for up to $2.5 billion, and in May, the company struck a deal of up to $ 1 billion to buy pain-focused biotech SiteOne Therapeutics.
Unlike many pharma companies that are at risk of losing patent exclusivity for their key drugs, Eli Lilly is in a robust position, thanks to its diabetes and obesity treatments Mounjaro and Zepbound, respectively, which are collectively estimated to generate $30.2 billion in sales in 2025.
Is Eli Lilly Stock a Buy, Sell, or Hold?
Given the robust prospects of its diabetes and weight-loss portfolio, Eli Lilly stock scores Wall Street’s Strong Buy consensus rating based on 17 Buys, two Holds, and one Sell recommendation. The average LLY stock price target of $997.60 indicates 23.5% upside potential from current levels. LLY stock has advanced about 5% year-to-date.
Is VERV Stock a Good Buy?
With nine Buys and one Hold, Wall Street has a Strong Buy consensus rating on Verve Therapeutics stock. The average VERV stock price target of $24 indicates about 283% upside potential.
