Eli Lilly looks beyond its blockbuster obesity drugs with another smart deal

Club name Eli Lilly will be riding the obesity-drug wave for years to come, but the world's most valuable health-care company is not forgetting to stock its pipeline with other potential winners. The latest bit of evidence: Eli Lilly on Tuesday announced plans to buy gene-editing firm Verve Therapeutics for as much as $1.3 billion — its third small deal of the year. It comes just weeks after Lilly said it was buying pain-focused biotech SiteOne Therapeutics for up to $1 billion. In January, Lilly bought an experimental breast cancer drug from Scorpion Therapeutics for up to $2.5 billion. Lilly's interest in Verve is hardly a surprise because the two companies already had an existing partnership that covered its lead asset, an experimental cardiovascular disease treatment known as Verve-102. Verve is a clinical-stage company, meaning all its assets are still in development and not on the commercial market. In a note to clients on Tuesday, analysts at Canaccord Genuity who cover Verve said "at this price, [Eli Lilly] is getting quite the deal." Unsurprisingly, shares of Verve soared on the news — blowing past the $10.50 apiece that Lilly agreed to pay up front. Verve shareholders could receive an additional $3 per share if Verve-102 enters a late-stage trial in the U.S. within a decade of the deal closing. After going public in 2021, Verve's stock got off to a hot start during a speculative period for the market overall. But shares eventually cooled off considerably, as did investor interest in gene-editing stocks more broadly. Verve shares entered the week down more than 90% from their September 2021 record close. VERV ALL mountain Verve Therapeutics' stock performance since going public in 2021. Meanwhile, shares of Lilly were down a little more than 1% on Tuesday. The stock entered the day up around 13% from its lowest close of the year on May 23, which was the culmination of a brutal, multiweek sell-off on fears about competitive dynamics in the GLP-1 obesity market . We added to our Lilly position on May 22 , believing the pullback was excessive. Verve in April reported positive initial data on Verve-102 in an early stage clinical trial, and said it plans to begin dosing patients in a midstage phase-2 study later this year. At the time, Cantor Fitzgerald called the April data "a clear win" for Verve-102. Verve-102 is designed to "turn off" a gene in the liver called PCSK9 that is involved in regulating the amount of "bad" cholesterol in the blood. Some naturally occurring mutations of that gene lead people to have low cholesterol; others lead to high cholesterol, which puts them at higher risk for developing cardiovascular disease. Right now, the target population for Verve-102 is people with a genetic condition that leads to high levels of "bad" cholesterol, as well as those who have premature coronary artery disease. By dosing those patients with Verve-102, the thinking is that they should see reduced amounts of "bad" cholesterol in their blood. Verve sees this as a one-time treatment. If the drug proves successful, it's possible the treatment group could expand beyond high-risk patients. In an interview with CNBC's Angelica Peebles earlier this year, Lilly Chief Scientific Officer Dan Skovronsky said he believed the company was capable of solving one of the big issues surrounding gene-editing technology, which is getting the treatments to the right part of the body. Last year, Lilly opened a $700 million genetic medicine R & D facility in Boston. Bottom line We're still years away from Verve-102 potentially hitting the market — remember, phase 2 is starting later this year — but nevertheless, it is an interesting move for Lilly. In the pharmaceutical world, having a strong pipeline is essential to long-term success. Of course, the main character in the Lilly story remains GLP-1 weight-loss drugs, and it figures to stay that way for quite some time. In addition to the blockbuster Zepbound, Lilly is aggressively pursuing next-generation obesity treatments, including an oral GLP-1 that could expand the market further. However, as investors with a multiyear time horizon, we want to see Lilly putting more shots on goal through acquisitions to complement the organic research and development happening within the company. We felt that way back in 2023 when Lilly went on a buying spree that year . Fast forward to the present, and we're expecting data soon on bimagrumab , which is one of the assets that the company picked up in that prior string of deals. What that means is the payoff from Verve, SiteOne or the Scorpion cancer drug should not be expected anytime soon. But that doesn't mean investors cannot find comfort in what it's doing now, knowing that Lilly isn't getting complacent with the success of its GLP-1s. (Jim Cramer's Charitable Trust is long LLY. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Business Insider

3 hours ago

• Business Insider

Guggenheim Reaffirms Their Buy Rating on Eli Lilly & Co (LLY)

In a report released yesterday, Seamus Fernandez from Guggenheim maintained a Buy rating on Eli Lilly & Co (LLY – Research Report), with a price target of $936.00. The company's shares closed yesterday at $762.73. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Fernandez is a 5-star analyst with an average return of 12.9% and a 59.46% success rate. Fernandez covers the Healthcare sector, focusing on stocks such as Eli Lilly & Co, Cidara Therapeutics, and Verve Therapeutics. In addition to Guggenheim, Eli Lilly & Co also received a Buy from Leerink Partners's David Risinger in a report issued on June 18. However, on June 5, Erste Group downgraded Eli Lilly & Co (NYSE: LLY) to a Hold. Based on Eli Lilly & Co's latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $12.73 billion and a net profit of $2.76 billion. In comparison, last year the company earned a revenue of $8.77 billion and had a net profit of $2.24 billion

Business Upturn

6 hours ago

• Business Upturn

Novo Nordisk's subcutaneous and oral amycretin data published in The Lancet and presented at ADA 2025

By GlobeNewswire Published on June 21, 2025, 04:34 IST Subcutaneous amycretin phase 1b/2a data on the safety, tolerability and weight loss potential in people with overweight or obesity was published in The Lancet and presented at the American Diabetes Association (ADA) Scientific Sessions. 1,2 and presented at the American Diabetes Association (ADA) Scientific Sessions. Oral amycretin phase 1 data on the safety, tolerability and weight loss potential in people with overweight or obesity was also published in The Lancet. 3 Findings from the clinical trials indicate amycretin appeared tolerable with a safety profile consistent with other GLP-1 and amylin receptor agonists.1,2,3 Bagsværd, Denmark, 20 June 2025 – Novo Nordisk announces subcutaneous amycretin data being presented at the American Diabetes Association (ADA) 85 th Scientific Sessions in Chicago, US.1 Full results of two clinical trials evaluating the safety, tolerability and weight loss potential of subcutaneous and oral amycretin in people with overweight or obesity were published today in The Lancet medical journal.1,3 Amycretin is the first treatment that combines GLP-1 and amylin receptor agonism biology in a single molecule. The published and presented results from the once-weekly subcutaneous amycretin phase 1b/2a clinical trial showed that participants who received the treatment demonstrated significantly greater weight loss across the full range of doses investigated compared to placebo. Data being presented at ADA were collected from two parts of the trial; dose escalation (amycretin 60 mg), and dose escalation and maintenance (amycretin 20 mg, 5 mg and 1.25 mg).1,2 No plateauing in weight reduction was observed at the end of treatment (ranging from 20 to 36 weeks) with all tested doses, suggesting that a longer treatment duration may potentially contribute to additional weight loss.1,2 Estimated mean change in body weight from baseline with once-weekly subcutaneous (SC) amycretin: 1,2 * Dose Treatment % Weight change % Weight change duration (SC amycretin) (placebo) 60 mg 36 weeks -24.3% -1.1%20 mg** 36 weeks -22.0% 1.9%5 mg** 28 weeks -16.2% 2.3% 1.25 mg** 20 weeks -9.7% 2.0% * If all people adhered to treatment i.e. if all people followed the planned dosing schedule for the full trial period without any treatment discontinuations. ** Administered during a 12-week maintenance period. Once-weekly subcutaneous amycretin treatment escalated up to 60 mg appeared tolerable with a safety profile consistent with other GLP-1 and amylin receptor agonists.1,2 The number of treatment-emergent adverse events (TEAEs) increased in a dose-dependent manner, were mostly gastrointestinal, and were comparable to the rate and profile of TEAEs reported in early-phase studies of GLP-1 receptor, GLP-1 receptor/gastric inhibitory polypeptide (GIP) receptor, and amylin receptor agonists.1,2 The majority of TEAEs were mild to moderate in severity and resolved by the end of the study period.1,2 Of the participants who discontinued the trial, the majority were due to non-TEAE reasons.1,2 'As pioneers in obesity innovation, we are exploring multiple biological pathways to develop potentially transformative medicines that support the individual needs and preferences of people with obesity on their weight loss journey towards overall improved health,' said Martin Holst Lange, executive vice president for Development at Novo Nordisk . 'Amycretin is the first investigational treatment that combines GLP-1 and amylin receptor agonism biology in one molecule, working on distinct pathways and offering complementary effects on appetite control. The findings published and presented today are encouraging. We are excited to advance the clinical development of subcutaneous and oral amycretin into phase 3 to assess its potential as a therapeutic option for weight management.' The published once-daily oral amycretin phase 1 clinical trial data showed that participants receiving amycretin achieved greater weight loss compared to placebo.3 After 12 weeks of treatment with amycretin up to 50 mg and up to 2 times 50 mg, participants achieved a mean change in body weight of -10.4% and -13.1% respectively, compared to -1.2% with placebo.3 There were no apparent signs of weight loss plateauing within the 12 weeks of treatment in either of these amycretin-treated groups.3 Once-daily oral amycretin appeared to have an acceptable safety profile and was tolerable in all tested doses, with TEAEs in line with what was expected from targeting GLP-1 and amylin receptors.3 All reported TEAEs occurred in a dose-proportional manner, were mild to moderate in severity, and mostly gastrointestinal. No new safety signals appeared during the study.3 Based on the findings from the oral and subcutaneous amycretin trials, Novo Nordisk recently announced it will advance amycretin into phase 3 trials to further investigate the treatment as a potential new therapeutic option for weight management.4 About amycretin Amycretin is a unimolecular long-acting GLP-1 and amylin receptor agonist under development by Novo Nordisk, to provide an efficacious and convenient treatment for adults with overweight or obesity and for adults with type 2 diabetes. Amycretin is developed for subcutaneous and oral administration. Oral amycretin Phase 1 trial – The trial evaluated the single-ascending dose and multiple ascending doses for oral amycretin, up to 2 times 50 mg, in 144 people with overweight or obesity, with a total treatment duration of up to 12 weeks. Subcutaneous amycretin Phase 1b/2a trial – The trial investigated the safety, tolerability, pharmacokinetics, and proof-of-concept of once-weekly subcutaneous amycretin in 125 people with overweight or obesity. The trial was a combined single ascending dose, multiple ascending dose and dose-response trial investigating three different maintenance doses with a total treatment duration of up to 36 weeks. About Novo Nordisk Novo Nordisk is a leading global healthcare company founded in 1923 and headquartered in Denmark. Our purpose is to drive change to defeat serious chronic diseases built upon our heritage in diabetes. We do so by pioneering scientific breakthroughs, expanding access to our medicines, and working to prevent and ultimately cure disease. Novo Nordisk employs about 77,400 people in 80 countries and markets its products in around 170 countries. For more information, visit , Facebook , Instagram , X , LinkedIn and YouTube . Contacts for further information _______________________ References The Lancet: Dahl K, Toubro, S, Dey S, et al. Amycretin, a novel, unimolecular GLP-1 and amylin receptor agonist administered subcutaneously: Results of a randomised, controlled, phase 1b/2a study. Dahl, K, et al. (2025). Amycretin, a Novel, Unimolecular GLP-1 and Amylin Receptor Agonist: Results of a Phase 1b/2a Clinical Trial. Poster 2002-LB. American Diabetes Association (ADA) 85th Scientific Sessions, Chicago, US, June 20 – 23, 2025. The Lancet: Gasiorek A, Heydorn A, Gabery S, et al. Safety, tolerability, pharmacokinetics, and pharmacodynamics of the first-in-class GLP-1 and amylin receptor agonist, amycretin: a first-in-human, phase 1, randomised, placebo-controlled study. Novo Nordisk Company Announcement. Novo Nordisk to advance subcutaneous and oral amycretin for weight management into phase 3 clinical development. Available at: Attachment Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same. Ahmedabad Plane Crash GlobeNewswire provides press release distribution services globally, with substantial operations in North America and Europe.

6 hours ago

Diabetes drug may cut migraine days in half with little weight loss: Study

Drugs in the same family as Ozempic and Wegovy are known for treating diabetes and helping with weight loss, but a small, early-stage study suggested they might also ease migraines -- even when there's no weight loss. The benefit appears to come from lowering pressure in the brain, Dr. Simone Braca, a neurologist at the University of Naples Federico II and lead author of the study, explained to ABC News. 'This study is very interesting in that the GLP 1s are hypothesized to lower brain pressure, which can then lower your chance of getting a headache or a migraine,' Braca said. The small, 12-week study tracked 26 adults with obesity who had chronic or frequent migraines. Published in Headache -- the official journal of the American Headache Society -- and presented at this week's European Academy of Neurology meeting in Finland, it tested liraglutide, a type of GLP-1 drug commonly used for diabetes and weight loss. After taking a daily 1.8 mg dose of liraglutide for three months -- the amount typically used to treat diabetes -- their average number of headache days per month dropped from 20 to about nine. Participants also reported less disability from migraines, with scores on a standard headache impact scale cut by more than half. Although some participants lost a small amount of weight, Braca said the few lost pounds were not meaningful enough to explain the improvement in migraines. Instead, Braca pointed to pressure from cerebrospinal fluid -- the liquid that surrounds and cushions the brain and spine. He said he believes that even slight buildups of this fluid can press on nearby veins and nerves in the brain, potentially triggering migraines. 'An increased pressure of the spinal fluid in the brain may be one of the mechanisms underlying migraine,' Braca said. 'And if we target this mechanism, this preliminary evidence suggests that it may be helpful for migraine.' Nearly half of patients reported at least a 50% reduction in headache days, according to the Headache paper. About 40% experienced mild side effects like nausea or constipation. None stopped taking the medication. With such promising results, Braca and his research team, led by Dr. Roberto De Simone, are already planning larger trials. Future studies will measure brain pressure more directly and explore whether other GLP 1 drugs might also offer the same relief but with fewer side effects. 'There are still a substantial portion of migraine patients that face an unmet need and that live with its burden,' he said. 'New drugs that could target other pathways, I think that could be reassuring to those patients and give them hope.' The study adds to growing evidence that GLP-1 drugs may have benefits beyond diabetes and weight loss. Researchers are already studying these medications for a range of other conditions, including reducing the risk of heart disease and stroke, easing symptoms of addiction and treating Alzheimer's disease.