Eli Lilly Will Buy Prevail in $1 Billion Deal

Eli Lilly announced on Tuesday morning that it would buy Prevail Therapeutics in a deal potentially valued at $1.04 billion, in order to expand its presence in the gene therapy field.

Eli Lilly announced on Tuesday morning that it would buy Prevail Therapeutics in a deal potentially valued at $1.04 billion, in order to expand its presence in the gene therapy field.

In a statement, the company said it also forecast 2021 revenue to be between $26.5 billion and $28 billion, including sales of about $1 billion to $2 billion from its COVID-19 treatments. According to IBES data from Refinitiv, analysts on average were expecting 2021 sales of $26.47 billion.

Eli Lilly also said that it would acquire Prevail Therapeutics for $22.50 per share, a premium of 80 percent to the stock’s Monday close. Prevail is known for developing gene therapies for patients with neurodegenerative diseases including dementia and Parkinson’s disease.

The deal between the two companies also includes a “contingent value right” worth $4 per share in cash, payable upon the first regulatory approval of a product from Prevail’s pipeline.

Several of Prevail’s therapies have been granted “fast track” and “orphan drug” tags by the European Commission and the United States Food and Drug Administration and the European Commission.


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