Eli Lilly in Talks to Acquire Verve Therapeutics for $13 Billion

Eli Lilly, a leading pharmaceutical company, is in advanced discussions to acquire Verve Therapeutics, a gene-editing startup, for a potential deal valued at up to 13 billion dollars. This strategic move aims to bolster Eli Lilly's pipeline of experimental drugs. According to sources familiar with the matter, the acquisition offer includes a substantial upfront payment of nearly 10 billion dollars to Verve Therapeutics, with an additional 3 billion dollars contingent upon the achievement of specific clinical milestones by the gene therapy company.

Verve Therapeutics is currently developing a gene therapy designed to lower high cholesterol levels, which is expected to be used in conjunction with other medications. This acquisition would not only expand Eli Lilly's therapeutic portfolio but also position the company at the forefront of innovative treatments for cardiovascular diseases. The potential acquisition is part of Eli Lilly's broader strategy to enhance its capabilities in the rapidly evolving field of gene editing.

If the negotiations proceed smoothly, the deal could be announced as early as this week. This acquisition underscores Eli Lilly's commitment to investing in cutting-edge technologies and therapies that have the potential to revolutionize patient care. The integration of Verve Therapeutics' expertise in gene editing with Eli Lilly's extensive resources and market reach could lead to significant advancements in the treatment of genetic disorders and other complex diseases.

The potential acquisition of Verve Therapeutics by Eli Lilly highlights the growing importance of gene editing in the pharmaceutical industry. As companies continue to explore the potential of gene therapies, strategic acquisitions like this one are likely to become more common. By acquiring Verve Therapeutics, Eli Lilly is positioning itself to capitalize on the future of gene editing and to deliver innovative treatments to patients worldwide.

Verve Therapeutics, founded between 2017 and 2018 by Kiran Musunuru and Sekar Kathiresan, focuses on developing "one-time" in vivo therapies using CRISPR base editing technology to treat atherosclerotic cardiovascular diseases. Its main projects include VERVE-101 (PCSK9), VERVE-102, and VERVE-201 (ANGPTL3), with VERVE-102 showing a reduction in LDL-C of up to 69% in Phase Ib clinical trials. Despite VERVE-101 being temporarily halted due to a patient experiencing grade 3 thrombocytopenia, the company attributed this to the lipid nanoparticle delivery system rather than the base editing itself.

This potential acquisition of Verve by Eli Lilly is another strategic move in the company's efforts to enhance its innovative therapy portfolio. Previously, Eli Lilly acquired Scorpion Therapeutics for 25 billion dollars and SiteOne Therapeutics for 10 billion dollars. Unlike many large pharmaceutical companies, Eli Lilly tends to focus on early-stage assets, securing pre-clinical and Phase I assets to build a differentiated innovative portfolio. This strategy is particularly evident in its investments in diabetes, obesity, Alzheimer's disease, and gene therapy.

If the acquisition is completed, it will strengthen Eli Lilly's leading position in the intersection of cardiovascular diseases and gene editing therapies, potentially establishing a first-mover advantage in this field. CRISPR base editing, known as the "second-generation gene editing technology," offers precise single-base replacements, making it a lower-risk and more versatile option compared to traditional CRISPR-Cas9 editing. In this technological race, Beam Therapeutics, co-founded by Feng Zhang and David Liu, is another key player focusing on base editing technology and is considered a core competitor to Verve.

Both Verve and Beam have advanced their base editing drugs to the clinical stage and have established competitive differentiation in multiple indications. Eli Lilly's acquisition talks are likely to accelerate Verve's clinical pipeline and further intensify industry consolidation and capital interest in the base editing field. If the deal goes through, it could not only drive innovation in the treatment of cardiovascular diseases but also reshape the global competitive landscape of CRISPR base editing technology.