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.