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Lilly (LLY) to Acquire Prevail Therapeutics for Gene Therapies
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Eli Lilly and Company (LLY - Free Report) announced that it will acquire Prevail Therapeutics Inc. in an all-cash deal worth approximately $1.04 billion. The transaction is expected to be completed in the first quarter of 2021, subject to customary closing conditions. The acquisition will add Prevail’s pre-clinical and clinical-stage gene therapy programs to Lilly’s pipeline, adding a new avenue for drug discovery and development at Lilly.
Please note that Prevail is a small biotech company focused on developing potentially disease-modifying AAV9-based gene therapies for treating neurodegenerative diseases.
Per the definitive agreement, Lilly will pay $22.50 for each share of Prevail for an aggregate of approximately $880 million in cash to Prevail investors at closing of the deal. The offer price of $22.50 per share 80% premium to Prevail’s closing stock price on Dec 14.
Investors will also receive one non-tradable contingent value right (“CVR”) worth up to $4.00 per share, which will be payable upon the first regulatory approval of a product from Prevail's pipeline in countries namely — the Japan, United Kingdom, Germany, France, Italy or Spain. The total aggregate value of CVR stands at approximately $160 million. Moreover, $4.00 per share worth the CVR is valid till Dec 31, 2024. The value of the CVR will decrease by 8.3% per month following that if approval is not received for any gene therapy candidate and finally the CVR will expire on Dec 1, 2028.
Shares of Lilly have rallied 27.4% so far this year compared with the industry’s increase of 1.2%.
Prevail is developing its lead gene therapy candidates — PR001 and PR006 — in separate early-stage studies. Two phase I/II studies are evaluating PR001 in patients with Parkinson's disease with GBA1 mutations (PD-GBA) or neuronopathic Gaucher disease (nGD). The company is developing PR006 as a potential treatment for frontotemporal dementia with GRN mutations (FTD-GRN) in another phase I/II study. Both candidates enjoy Fast Track and Orphan drug designation in the United States. The company also has several pre-clinical gene therapy candidates targeting neurodegenerative disorders including Alzheimer's disease, Parkinson's disease and amyotrophic lateral sclerosis.
Gene therapies are coming in focus with several companies targeting to develop a one-time gene therapy-based treatment for diseases, especially rare ones. Lilly’s foray into gene therapy will add the next paradigm of treatment to the company’s pipeline. Moreover, Lilly is an established leader in neuroscience drug development and addition of gene therapies will likely boost its neuroscience portfolio.
Lilly’s neuroscience portfolio includes three new approved drugs — Emaglity, Tauvid and Reyvow — and other older drugs. The company is also developing tanezumab and solanezumab, two candidates in its neuroscience pipeline.
Halozyme’s earnings estimates have been revised upward for 2021 from $1.44 to $1.72 per share over the past 60 days. The stock is up 138% so far this year.
Repligen’s earnings per share estimates have moved up from $1.42 to $1.66 for 2021 over the past 60 days. Shares of this company have gained 100.7% year to date.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Lilly (LLY) to Acquire Prevail Therapeutics for Gene Therapies
Eli Lilly and Company (LLY - Free Report) announced that it will acquire Prevail Therapeutics Inc. in an all-cash deal worth approximately $1.04 billion. The transaction is expected to be completed in the first quarter of 2021, subject to customary closing conditions. The acquisition will add Prevail’s pre-clinical and clinical-stage gene therapy programs to Lilly’s pipeline, adding a new avenue for drug discovery and development at Lilly.
Please note that Prevail is a small biotech company focused on developing potentially disease-modifying AAV9-based gene therapies for treating neurodegenerative diseases.
Per the definitive agreement, Lilly will pay $22.50 for each share of Prevail for an aggregate of approximately $880 million in cash to Prevail investors at closing of the deal. The offer price of $22.50 per share 80% premium to Prevail’s closing stock price on Dec 14.
Investors will also receive one non-tradable contingent value right (“CVR”) worth up to $4.00 per share, which will be payable upon the first regulatory approval of a product from Prevail's pipeline in countries namely — the Japan, United Kingdom, Germany, France, Italy or Spain. The total aggregate value of CVR stands at approximately $160 million. Moreover, $4.00 per share worth the CVR is valid till Dec 31, 2024. The value of the CVR will decrease by 8.3% per month following that if approval is not received for any gene therapy candidate and finally the CVR will expire on Dec 1, 2028.
Shares of Lilly have rallied 27.4% so far this year compared with the industry’s increase of 1.2%.
Prevail is developing its lead gene therapy candidates — PR001 and PR006 — in separate early-stage studies. Two phase I/II studies are evaluating PR001 in patients with Parkinson's disease with GBA1 mutations (PD-GBA) or neuronopathic Gaucher disease (nGD). The company is developing PR006 as a potential treatment for frontotemporal dementia with GRN mutations (FTD-GRN) in another phase I/II study. Both candidates enjoy Fast Track and Orphan drug designation in the United States. The company also has several pre-clinical gene therapy candidates targeting neurodegenerative disorders including Alzheimer's disease, Parkinson's disease and amyotrophic lateral sclerosis.
Gene therapies are coming in focus with several companies targeting to develop a one-time gene therapy-based treatment for diseases, especially rare ones. Lilly’s foray into gene therapy will add the next paradigm of treatment to the company’s pipeline. Moreover, Lilly is an established leader in neuroscience drug development and addition of gene therapies will likely boost its neuroscience portfolio.
Lilly’s neuroscience portfolio includes three new approved drugs — Emaglity, Tauvid and Reyvow — and other older drugs. The company is also developing tanezumab and solanezumab, two candidates in its neuroscience pipeline.
Eli Lilly and Company Price
Eli Lilly and Company price | Eli Lilly and Company Quote
Zacks Rank & Stocks Consider
Lilly currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the biotech/drug sector include Halozyme Therapeutics (HALO - Free Report) and Repligen Corporation (RGEN - Free Report) , both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Halozyme’s earnings estimates have been revised upward for 2021 from $1.44 to $1.72 per share over the past 60 days. The stock is up 138% so far this year.
Repligen’s earnings per share estimates have moved up from $1.42 to $1.66 for 2021 over the past 60 days. Shares of this company have gained 100.7% year to date.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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