Latest news with #PCSK9
Yahoo
3 hours ago
- Business
- Yahoo
A $1.3 Billion Reason to Buy Eli Lilly Stock Now
Eli Lilly (LLY) is a pharmaceutical company that focuses on cardiometabolic health, neuroscience, oncology, and immunology. The company markets its products through brands like Jardiance, Emgality, Humalog, Mounjaro, and Trulicity. Eli Lilly was founded in 1876 and operates in 125 countries with its headquarters in Indianapolis, Indiana. Dear Tesla Stock Fans, Mark Your Calendars for June 30 3 ETFs with Dividend Yields of 12% or Higher for Your Income Portfolio This Options Tool Can Show You How to Trade Tesla Stock Ahead of Robotaxi Day Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Eli Lilly has shown notable volatility in the medium term. Over the past month, the stock has gained 2.3%, however shares are down 1% in the year to date. The stock remains 21.4% below its 52-week high while registering a 13.7% slip in the past 52 weeks. Eli Lilly posted its first-quarter results back on May 1. The company reported a profit of $3.34 per adjusted share, widely missing analysts' $3.52 estimate. The company generated $12.73 billion in revenue, a significant 45% rise from the same quarter last year and beating Wall Street's $12.62 billion estimate. Revenue from Mounjaro saw a substantial rise of 113% year over year to $3.84 billion. Zepbound produced $2.31 billion revenue, registering 20.9% growth. Shares of Eli Lilly fell more than 11% on the results as investors focused on the revised guidance. The company lowered its profit forecast with adjusted EPS now expected in the range of $20.78 to $22.28 from the previous range of $22.50 to $24.00 per adjusted share. The company cites heightened acquired in-process research and development charges (IPR&D) as one of the reasons for the guidance cut. Eli Lilly has announced an agreement to acquire gene-editing company Verve Therapeutics (VERV) for $1.3 billion. This values Verve Therapeutics at $10.50 per share, reflecting a 67.5% premium to its pre-announcement closing price. The move comes as part of Eli Lilly's plans to diversify the company's operations beyond diabetes and weight-loss drugs. Eli Lilly will pay $1 billion upfront and an additional $300 million contingent upon Verve Therapeutics' ability to achieve certain clinical targets. The companies were already involved in a partnership aimed at utilizing gene-editing treatment to lower cholesterol levels in cardiovascular patients. Verve Therapeutics' gene-editing technique utilizes cutting-edge technology allowing it to execute precise one-time changes to the DNA. This can deactivate genes such as PCSK9, LPA, and ANGPTL3, contributing to high cholesterol levels. At present the company is undergoing early stage clinical trials in patients diagnosed with familial hypercholesterolemia, a genetic disorder that causes high levels of LDL cholesterol. Eli Lilly is a top-rated pharmaceutical stock with a consensus 'Strong Buy' rating from analysts. Its mean price target is $983.12, reflecting upside potential of nearly 29%. The stock is covered by 26 analysts and has received 20 'Strong Buy' ratings, two 'Moderate Buy' ratings, and four 'Hold' ratings from Wall Street. On the date of publication, Ruchi Gupta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Canada News.Net
10 hours ago
- Business
- Canada News.Net
Eli Lilly bets on Verve, cholesterol gene therapy in $1.3 billion deal
INDIANAPOLIS, Indiana: Eli Lilly is making a bold play in cardiovascular gene therapy, announcing plans to acquire its partner Verve Therapeutics for up to US$1.3 billion as it expands beyond its blockbuster diabetes and weight-loss drugs. The move signals the pharmaceutical giant's more profound commitment to developing one-time gene-editing treatments for heart disease — specifically targeting high cholesterol — through technologies like base editing. Under the agreement announced this week, Lilly will pay $10.5 per share for Verve, a 67.5 percent premium over the biotech's previous closing price. Verve shares surged 75 percent to $11.02 in early trading. The Financial Times was the first to report that the deal was in the works. The transaction includes nearly $1 billion in upfront payments and up to $300 million in milestone-based payouts. The companies had already been collaborating on experimental therapies that use gene editing to reduce cholesterol in patients with a history of cardiovascular issues — a significant focus area for Lilly as it seeks long-term growth. Verve's leading candidate, VERVE-102, is in early trials and targets the PCSK9 gene, which is linked to cholesterol regulation. The therapy, based on base editing, aims to make a one-time change to a patient's DNA and is expected to be launched later this decade. "We are skeptical about the true market need of additional genetic medicines in these indications," said BMO Capital Markets analyst Evan Seigerman ahead of the announcement, citing competition from other cholesterol-lowering drugs. Still, industry observers said the deal is a significant boost for Verve and for the broader gene-editing field, which has struggled to attract investor enthusiasm recently. "This keeps Lilly focused within the cardiometabolic space," said Kevin Gade, COO at Bahl & Gaynor, referring to Lilly's core strength areas like diabetes and weight loss. Its therapies Mounjaro and Zepbound are projected to bring in over $30 billion this year, according to LSEG. Lilly has inked multiple partnerships with gene-editing firms in recent years, but this latest buyout is one of its boldest bets yet in the field.
CNBC
3 days ago
- Business
- CNBC
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.
Business Recorder
3 days ago
- Business
- Business Recorder
Eli Lilly strikes $1.3bn deal to buy gene-editing biotech Verve Therapeutics, companies say
Eli Lilly will acquire gene-editing startup Verve Therapeutics for up to $1.3 billion, the companies said on Tuesday, sending Verve's shares up 77.7% in premarket trading. Lilly has struck multiple partnership deals with gene-editing companies in the last two years to expand its portfolio beyond its blockbuster weight-loss and diabetes drugs. The drugmaker will buy Verve for $10.5 per share, which is a premium of 67.5% on the company's last close. The deal includes an upfront payment of almost $1 billion and a further $300 million based on the genetic-medicines firm achieving certain clinical milestones. The companies are already partnering to develop gene-editing therapies to reduce high cholesterol in people with heart disease, which are expected to be used in combination with other drugs. Shares of Lilly were down 1% before the bell. Verve's gene-editing medicines target the PCSK9, ANGPTL3 and LPA genes responsible for regulating blood cholesterol levels.
CNBC
3 days ago
- Business
- CNBC
Eli Lilly strikes $1.3 billion deal to buy gene-editing startup Verve Therapeutics, companies say
Eli Lilly will acquire gene-editing startup Verve Therapeutics for up to $1.3 billion, the companies said on Tuesday, sending Verve's shares up 77.7% in premarket trading. Lilly has struck multiple partnership deals with gene-editing companies in the last two years to expand its portfolio beyond its blockbuster weight-loss and diabetes drugs. The drugmaker will buy Verve for $10.5 per share, which is a premium of 67.5% on the company's last close. The deal includes an upfront payment of almost $1 billion and a further $300 million based on the genetic-medicines firm achieving certain clinical milestones. The companies are already partnering to develop gene-editing therapies to reduce high cholesterol in people with heart disease, which are expected to be used in combination with other drugs. Shares of Lilly were down 1% before the bell. Verve's gene-editing medicines target the PCSK9, ANGPTL3 and LPA genes responsible for regulating blood cholesterol levels.
