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Verve Therapeutics downgraded to Hold from Buy at Jefferies

Jefferies downgraded Verve Therapeutics (VERV) to Hold from Buy with a price target of $11, down from $28, after Eli Lilly (LLY) announced a definitive agreement to acquire Verve. Lilly will commence a tender offer to acquire all of the outstanding shares of Verve for a purchase price of $10.50 per share in cash, an aggregate of approximately $1B, plus one non-tradeable contingent value right per share that entitles the holder to receive up to an additional $3.00 per share. Lilly “appears to be good suitor,” given the existing partnership across the pipeline, the analyst tells investors in a research note. It sees likely Federal Trade Commission approval for the takeover.

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