Eli Lilly to acquire Verve Therapeutics for $1.3 billion

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.