Verve Therapeutics Stock Soars 76% on $1.3B Buyout Offer From Lilly
Verve Therapeutics VERV signed a definitive agreement with pharma bigwig Eli Lilly LLY. Per the terms, the pharma giant will acquire all outstanding shares of VERV for $10.50 per share in cash, aggregating to nearly $1 billion.
In addition, Verve's shareholders will receive one non-tradable contingent value right (CVR) per share. This CVR entitles holders to an additional cash payment of up to $3 per share, contingent upon the first patient being dosed with Verve's lead pipeline asset, VERVE-102, for atherosclerotic cardiovascular disease (ASCVD) in a late-stage study within 10 years of the deal's closing or termination of the CVR. Including the CVR, the total potential deal value reaches approximately $1.3 billion.
Post this acquisition, Lilly will add Verve's pipeline of gene therapies targeting heart diseases. This includes VERVE-102, an investigational in vivo gene-editing therapy aimed at reducing cholesterol levels. Earlier in April, Verve unveiled encouraging results from an early-stage study, which showed that a single infusion of this therapy resulted in dose-dependent reductions in blood PCSK9 protein levels and low-density lipoprotein cholesterol (LDL-C). VERVE-102 has also received Fast Track designation from the FDA, reflecting its potential to address a serious unmet need.
VERV already has a partnership with LLY. Per the deal terms, Lilly has opt-in rights to co-fund development and share commercialization rights for VERVE-102. Verve is also developing another candidate, VERVE-201, targeting the ANGPTL3 protein in an early-stage study. An update on this study is expected before this year's end.
A day before this announcement, the Financial Times reported that Lilly was in 'advanced talks' with Verve for a buyout.
The transaction, expected to be completed in the third quarter, is subject to customary closing conditions and clearance from regulatory authorities. Verve insiders, including CEO Sekar Kathiresan and early investors, have agreed to tender their shares, representing nearly 18% of the company's outstanding stock.
Following this news, shares of Verve rallied 76% in pre-market trading today.
Year to date, the stock has gained 9% compared with the industry's 2% growth.
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Unlike some of its peers, Sanofi SNY and Bristol Myers BMY,which are under pressure from investors to pursue deals for new drugs, Lilly's top line continues to reach new heights. The tremendous success with GLP-1 drugs, Mounjaro (for diabetes) and Zepbound (for obesity), has made LLY the largest drugmaker with a market capitalization of more than $700 billion and its share price has crossed $800 per share.
The idea behind the deal is clear — Lilly intends to strategically diversify its pipeline across therapeutic areas. Recent approvals in immunology (Omvoh and Ebglyss), oncology (Jaypirca) and neuroscience (Kisunla) highlight Lilly's intent to diversify beyond obesity and diabetes. A potential deal for Verve fits this trend.
Once closed, Verve Therapeutics will be Lilly's third targeted M&A deal this year. Earlier in January, it signed a $2.5 billion deal for Scorpion Therapeutics' experimental oncology drug. Last month, Lilly announced its intent to acquire SiteOne Therapeutics in a deal valued at $1 billion to strengthen its neuroscience pipeline. Such deals suggest that Lilly's M&A strategy is selective, focusing on long-term strength across various therapeutic areas.
While broader macroeconomic concerns, including Trump-era tariffs and leadership shifts at the FDA, have weighed on deal-making in 2025, Big Pharma continues to pursue strategic assets in key growth areas.
This month, Sanofi announced a $9.5 billion acquisition of Blueprint Medicines to strengthen its immunology pipeline and reduce reliance on the blockbuster drug Dupixent. Through this transaction, Sanofi intends to add Ayvakit — an inhibitor of KIT and PDGFRA proteins with growing commercial traction — and several early-stage pipeline assets focused on systemic mastocytosis (SM). Sanofi expects to close this deal in the third quarter of 2025.
In parallel, Bristol Myers signed a co-development and commercialization agreement with BioNTech for BNT327, an investigational bispecific antibody targeting PD-L1 and VEGF. The deal gives Bristol Myers access to a promising oncology candidate across multiple tumor types, aligning with its strategy to offset revenue declines from legacy brands.
These transactions highlight Big Pharma's continued interest in small biotechs with promising and innovative assets.
Verve Therapeutics, Inc. price | Verve Therapeutics, Inc. Quote
Verve currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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