Pharma giant targets cholesterol treatments beyond diabetes drugs
Eli Lilly announced Tuesday that it will acquire gene-editing firm Verve Therapeutics in a deal valued at up to $1.3 billion. The move expands Lilly’s footprint in cardiovascular therapies, as it looks to diversify beyond its blockbuster diabetes and weight-loss medications.
The acquisition comes with a premium price tag — $10.5 per share, representing a 67.5% markup over Verve’s last closing price. Shares of Boston-based Verve surged 75% in early trading following the announcement.
Betting on base editing to treat heart disease
Verve is developing one-time gene-editing therapies designed to reduce high cholesterol in people with a history of cardiovascular disease. Its lead candidate, VERVE-102, uses a technique known as base editing to make permanent changes to the PCSK9 gene, which regulates LDL cholesterol levels. The treatment remains in early-stage clinical trials and is not expected to reach the market before the next decade.
Lilly will make an upfront payment of nearly $1 billion, with an additional $300 million tied to future clinical milestones. The deal follows multiple partnerships Lilly has made with gene-editing firms over the past two years, reinforcing its long-term strategy in cardiometabolic disease.
Market skepticism, but strategic alignment
Despite investor enthusiasm, some analysts have raised doubts about the commercial need for additional genetic cholesterol-lowering therapies. “We are skeptical about the true market need,” said Evan Seigerman of BMO Capital Markets, referencing existing treatments already available.
Still, others view the acquisition as a significant win for the gene-editing space, which has struggled to maintain investor confidence amid slow progress and regulatory hurdles. Kevin Gade, COO at Bahl & Gaynor, noted that the deal keeps Lilly focused within its core expertise. “It fits within the cardiometabolic domain they already dominate,” he said.
Lilly diversifies beyond Mounjaro and Zepbound
Eli Lilly’s leading treatments for diabetes and weight loss — Mounjaro and Zepbound — are forecast to bring in over $30 billion this year. However, the company has made clear it intends to balance its portfolio by investing in next-generation therapies, particularly in areas like cardiovascular health where long-term unmet needs persist.
Verve’s use of base editing offers a novel, potentially one-time solution for patients with inherited risk factors for high cholesterol. The acquisition gives Lilly early access to this emerging technology and positions it at the forefront of a new wave of cardiovascular treatment innovation.
