DIA444.52+2.14 0.48%
SPX6,263.26+37.74 0.61%
IXIC20,611.34+192.87 0.95%

Eli Lilly's $1.3 Billion Verve Deal Signals Confidence In Gene Editing Space: Analyst

Benzinga·06/18/2025 17:59:21
Listen to the news

On Tuesday, Eli Lilly And Co (NYSE:LLY) agreed to acquire Verve Therapeutics, Inc. (NASDAQ:VERV), a Boston-based clinical-stage company developing genetic medicines for cardiovascular disease.

Lilly offered to purchase Verve for $10.50 per share in cash, an aggregate of approximately $1.0 billion, plus one non-tradeable contingent value right per share that entitles the holder to receive up to an additional $3.00 per share, for a total potential consideration of up to $13.50 per share in cash, an aggregate of up to approximately $1.3 billion).

The transaction is expected to close in the third quarter of 2025. The purchase price payable at closing represents a premium of approximately 113% to the 30-day volume-weighted average trading price of Verve’s common stock ended on June 16, 2025, the last trading day before the deal announcement.

Also Read: Sarepta Therapeutics Stock Plummets Over 40% On Second Fatal Case Linked To Its Gene Therapy

The proposed acquisition of Verve Therapeutics by Eli Lilly is eliciting positive reactions from analysts, who see it as a crucial endorsement for the broader development-stage genetic medicines market.

Despite downgrading Verve to Neutral on Wednesday, HC Wainwright stated the offer provides “important validation” for a sector that has faced significant headwinds.

William Blair, which downgraded Verve to Market Perform on Tuesday, similarly believes the deal is advantageous for Verve shareholders and aligns with Lilly’s existing pipeline exposure.

HC Wainwright’s Mitchell Kapoor underscored the acquisition’s importance in validating gene editing for “mass markets” such as cardiovascular conditions, an area of interest for other companies as well.

Kapoor also suggested Lilly’s substantial market value and strong cash flow, largely driven by its leadership in weight-loss drugs, would deter serious competing bids for Verve.

William Blair’s Myles Minter concurred that while a bargain for Eli Lilly, the 115% premium still represents a “win” for Verve shareholders and the gene editing space, which has been under considerable macro and funding pressure.

Both analysts see the acquisition of Verve as a substantial positive for multiple gene editing stocks, including CRISPR Therapeutics AG (NASDAQ:CRSP), Intellia Therapeutics Inc (NASDAQ:NTLA), Editas Medicine Inc (NASDAQ:EDIT), Metagenomi Inc (NASDAQ:MGX), and Beam Therapeutics Inc (NASDAQ:BEAM).

Price Action: LLY stock is trading lower by 0.91% to $784.02, and VERV stock is down 1.98% at $11.16 at last check Wednesday.

Read Next:

Image via Shutterstock

Risk Disclosure: The content of this page is not an investment advice and does not constitute any offer or solicitation to offer or recommendation of any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives and specific financial circumstances. All investments involve risk and the past performance of securities, or financial products does not guarantee future results or returns. Keep in mind that while diversification may help spread risk it does not assure a profit, or protect against loss, in a down market. There is always the potential of losing money when you invest in securities, or other financial products. Investors should consider their investment objectives and risks carefully before investing. For more details, please refer to risk disclosure.
During the campaign period, US stocks, US stocks short selling, US stock options, Hong Kong stocks, and A-shares trading will maintain at $0 commission, and no subscription/redemption fees for mutual fund transactions. $0 fee offer has a time limit, until further notice. For more information, please visit:  https://www.webull.hk/pricing
Webull Securities Limited is licensed with the Securities and Futures Commission of Hong Kong (CE No. BNG700) for carrying out Type 1 License for Dealing in Securities, Type 2 License for Dealing in Futures Contracts and Type 4 License for Advising on Securities.
Language

English

©2025 Webull Securities Limited. All rights reserved.