Liking what it sees, Lilly to buy base editing partner Verve for $1.3B

Eli Lilly agreed to buy partner Verve Therapeutics under a deal potentially worth up to $1.3 billion, confirming rumours first reported late on Monday by the Financial Times. Under the terms of the transaction, Lilly will pay $10.50 per share in cash at closing, or approximately $1 billion, with Verve stockholders also eligible for a contingent value right (CVR) of $3 per share linked to the PCSK9-targeting base editor VERVE-102.

The parties first joined forces in mid-2023 to advance Verve's in vivo gene editing programme targeting lipoprotein(a) for the treatment of atherosclerotic cardiovascular disease (ASCVD). The companies expanded their collaboration four months later, with Lilly paying $200 million upfront to acquire certain rights to Verve's programmes targeting PCSK9 and ANGPTL3, as well as an undisclosed third CVD target.

"VERVE-102 has the potential to be the first in vivo gene editing therapy for broad patient populations and could shift the treatment paradigm for cardiovascular disease from chronic care to one-and-done treatment," remarked Ruth Gimeno, Lilly group vice president, diabetes and metabolic R&D.

Overcoming earlier issues

Verve's earlier attempts at targeting PCSK9 with the gene editing medicine VERVE-101 ran into safety concerns linked to the delivery system, with the therapy associated with drug-induced ALT elevation and thrombocytopenia within days of dosing.

However, the drugmaker recently unveiled data suggesting that VERVE-102 —  which uses a different kind of lipid nanoparticle (LNP) — can avoid these issues. Findings from a Phase Ib study of VERVE-102 demonstrated a clean safety profile in 14 patients with heterozygous familial hypercholesterolaemia and/or premature coronary artery disease enrolled in the Heart-2 trial. 

When those results were announced in April, Verve said it expected to deliver an opt-in package and receive Lilly's decision in the second half of the year. 

Under the terms of the CVR, shareholders will receive a payout upon the first patient being dosed with VERVE-102 for ASCVD in a Phase III US study. The transaction — which has the backing of investors collectively holding 17.8% of Verve's stock — is expected to close in the third quarter.

Transaction "makes sense"

Prior to the deal being disclosed, analysts at BMO Capital Markets said a transaction "makes sense," citing the close ties between the two companies and the investment of over $300 million Lilly has already made in Verve. The analysts also cited recent commentary from Verve CEO Sekar Kathiresan saying that Lilly "found the VERVE-102 results very encouraging."

However, analysts at BMO Capital Markets also raised caution about "the ultimate commercial viability of gene editing for primary care conditions," adding that given existing data — notably for Merck & Co.'s oral PCSK9 inhibitor enlicitide decanoate — they "are sceptical about the true market need of additional genetic medicines in these indications."

For related analysis, see Physician Views Results: Practitioners poised to embrace oral PCSK9 Inhibitors as Merck & Co.’s drug clears late-stage hurdle.

The deal for Verve represents another transaction for Lilly's business development team this year. In January, the company agreed to buy Scorpion Therapeutics' PI3Kα inhibitor programme for up to $2.5 billion, while it more recently expanded its pain portfolio with the purchase of SiteOne Therapeutics for up to $1 billion.