Eli Lilly Diversifies With Verve Gene Therapy Deal

Eli Lilly’s $1.3 billion acquisition of Verve Therapeutics marks a strategic expansion into cardiovascular genetic medicine. The pharmaceutical giant paid a premium of about 113% over Verve’s 30-day volume-weighted average price, causing Verve’s stock to jump 80% on June 17, 2025.

This acquisition supports Eli Lilly’s broader effort to diversify beyond its established diabetes and obesity treatment business. Verve’s pioneering gene-editing approach, which irreversibly disables the PCSK9 gene to treat high cholesterol, offers a novel solution to cardiovascular disease. The deal enables Lilly to strengthen its position in the high-impact cardiovascular therapeutics space and further its genetic medicine ambitions. On a related topic, see – SoundHound AI: Buy, Sell Or Hold SOUN Stock At $10?

Image by Joachim Schnürle from Pixabay

Even with the high premium paid for Verve, Eli Lilly’s valuation metrics remain within historical bounds. The stock is trading at 57 times trailing adjusted earnings of $13.76 per share, which is lower than its three-year average P/E of 66. This indicates that the stock, while priced at a premium, still trades within a reasonable range considering its solid financial and operational performance, as detailed in the Buy or Sell Eli Lilly Stock dashboard.

Several important risks should be considered when assessing Eli Lilly’s stock:

• Eli Lilly’s Market Volatility Risk: Historically, the stock has underperformed during broader market declines, including the 2022 inflation-driven downturn, indicating vulnerability to macroeconomic stress.
• LLY Valuation Sensitivity: While its high multiple is backed by growth expectations, the stock remains sensitive to any operational missteps or shifts in market sentiment.
• Portfolio Concentration: The company’s dependence on the obesity drug market creates potential exposure to regulatory shifts or intensifying competition in that segment.

The Verve Therapeutics acquisition further strengthens Eli Lilly’s investment appeal, building on strong demand for its obesity drugs and continued entry into promising therapeutic areas. However, investing in a single stock—or a small handful—always carries significant risk. Consider Trefis’ High Quality (HQ) Portfolio, which includes 30 stocks and has consistently outperformed the S&P 500 over the past four years. Why? As a group, HQ Portfolio stocks have delivered superior returns with lower volatility, as seen in the HQ Portfolio performance metrics.

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