Eli Lilly announces agreement to acquire Prevail Therapeutics

▴ Eli Lilly announces agreement to acquire Prevail Therapeutics
The acquisition will establish a new modality for drug discovery and development at Lilly

Eli Lilly and Company and Prevail Therapeutics Inc. today announced a definitive agreement for Lilly to acquire Prevail for $22.50 per share in cash (or an aggregate of approximately $880 million) payable at closing plus one non-tradable contingent value right ("CVR") worth up to $4.00 per share in cash (or an aggregate of approximately $160 million), for a total consideration of up to $26.50 per share in cash (or an aggregate of approximately $1.040 billion). The CVR is payable (subject to certain terms and conditions) upon the first regulatory approval of a product from Prevail's pipeline as set forth in more detail below. Prevail is a biotechnology company developing potentially disease-modifying AAV9-based gene therapies for patients with neurodegenerative diseases.

The acquisition will establish a new modality for drug discovery and development at Lilly, extending Lilly's research efforts through the creation of a gene therapy program that will be anchored by Prevail's portfolio of clinical-stage and preclinical neuroscience assets. Prevail's lead gene therapies in clinical development are PR001 for patients with Parkinson's disease with GBA1 mutations (PD-GBA) and neuronopathic Gaucher disease (nGD) and PR006 for patients with frontotemporal dementia with GRN mutations (FTD-GRN). Prevail's preclinical pipeline includes PR004 for patients with specific synucleinopathies, as well as potential gene therapies for Alzheimer's disease, Parkinson's disease, amyotrophic lateral sclerosis (ALS), and other neurodegenerative disorders.

"Gene therapy is a promising approach with the potential to deliver transformative treatments for patients with neurodegenerative diseases such as Parkinson's, Gaucher and dementia," said Mark Mintun, M.D., vice president of pain and neurodegeneration research at Lilly. "The acquisition of Prevail will bring critical technology and highly skilled teams to complement our existing expertise at Lilly, as we build a new gene therapy program anchored by well-researched assets. We look forward to completing the proposed acquisition and working with Prevail to advance their groundbreaking work through clinical development."

"Lilly is an established leader in neuroscience drug development and commercialization who shares our commitment to patients with neurodegenerative diseases, and I'm excited for Prevail to join the Lilly family," said Asa Abeliovich, M.D., Ph.D., founder and chief executive officer of Prevail. "I'm incredibly proud of the Prevail team, who have made great progress advancing our pipeline of gene therapy programs for patients with these devastating disorders. In just over three years, Prevail has advanced two first-in-class gene therapy programs into clinical development for PD-GBA, nGD, and FTD-GRN, established two manufacturing platforms, and developed a broad pipeline with great potential to impact patients in need of disease-modifying treatment options. With its global scale and resources, Lilly will be the ideal organization to maximize the potential of our pipeline and accelerate our ability to bring these therapies to as many patients as possible. We look forward to working together to advance our shared mission."

Under the terms of the agreement, Lilly will commence a tender offer to acquire all outstanding shares of Prevail Therapeutics Inc. for a purchase price of $22.50 per share in cash (or an aggregate of approximately $880 million) payable at closing plus one non-tradeable CVR. The CVR entitles Prevail stockholders to up to an additional $4.00 per share in cash (or an aggregate of approximately $160 million) payable (subject to certain terms and conditions) upon the first regulatory approval for commercial sale of a Prevail product in one of the following countries: United States, Japan, United Kingdom, Germany, France, Italy or Spain. To achieve the full value of the CVR, such regulatory approval must occur by December 31, 2024. If such regulatory approval occurs after December 31, 2024, the value of the CVR will be reduced by approximately 8.3 cents per month until December 1, 2028 (at which point the CVR will expire). There can be no assurance any payments will be made with respect to the CVR. The transaction is not subject to any financing condition and is expected to close in the first quarter of 2021, subject to customary closing conditions, including receipt of required regulatory approvals and the tender of a majority of the outstanding shares of Prevail's common stock. Following the successful closing of the tender offer, Lilly will acquire any shares of Prevail that are not tendered in the tender offer through a second-step merger at the same consideration as paid in the tender offer.

The purchase price payable at closing represents a premium of approximately 117 per cent to the 60-day volume-weighted average trading price of Prevail's common stock ended on December 14, 2020, the last trading day before the announcement of the transaction. Prevail's Board of Directors unanimously recommends that Prevail's stockholders tender their shares in the tender offer. Additionally, certain Prevail stockholders, beneficially owning approximately 51 percent of Prevail's outstanding common stock, have (subject to certain terms and conditions) agreed to tender their shares in the tender offer.

Upon closing, the impact of this transaction will be reflected in Lilly's 2021 financial results according to Generally Accepted Accounting Principles (GAAP). There will be no change required to Lilly's 2021 financial guidance being issued today for research and development expense or non-GAAP earnings per share as a result of this transaction.

Tags : #EliLilly #LatestNewsonEliLilly15thDec #PrevailTherapeutics #LatestNewsonPrevailTherapeutics15thDec #LatestPharmaAcquisitionNews15thDec #LatestPharmaNews15thDec #LatestNewsonGeneTherapy15thDec #NeurodegenerativeDiseases

About the Author


Team Medicircle

Related Stories

Loading Please wait...

-Advertisements-




Trending Now

Public Hospitals Go High-Tech: AIIMS Delhi Leads India’s Robotic Surgery WaveFebruary 19, 2025
The Hidden Dangers of Scented Candles: Aesthetic Bliss or Silent Health Hazard?February 18, 2025
The University of Leeds and Sri Balaji Vidyapeeth Host 3rd International Health and Research Convention to Advance Global Healthcare and Medical ResearchFebruary 17, 2025
When ‘You Don’t Look Sick’ Becomes a Death Sentence for Chronic Illness PatientsFebruary 17, 2025
7 Essential Tips for Keeping Your Liver HealthyFebruary 17, 2025
Apollo Hospitals to Host International Health Dialogue 2025 in New Delhi: A Global Summit on Patient Safety & Digital InnovationFebruary 17, 2025
Distractions significantly delay remote drivers’ reaction timeFebruary 17, 2025
Narayana Health SRCC Children's Hospital, Mumbai Observes International Childhood Cancer Day with Muskan Ki Mehfil—A Tribute to Courage and HopeFebruary 17, 2025
Eating from Plastic Containers? You Might Be Ingesting a Heart AttackFebruary 17, 2025
Lost Memories? Scientists Uncover the Mysterious Neurons That Could Save Your BrainFebruary 17, 2025
Lost Memories? Scientists Uncover the Mysterious Neurons That Could Save Your BrainFebruary 17, 2025
When the Mind Hurts, the Body Follows: How Depression Creates Havoc on Physical HealthFebruary 14, 2025
The Creativity Paradox: How Losing Control of Your Mind Can Set Your Imagination FreeFebruary 14, 2025
Why You Crave Sugar Even When You’re Stuffed: The Science Behind Sweet TemptationsFebruary 14, 2025
Why You Crave Sugar Even When You’re Stuffed: The Science Behind Sweet TemptationsFebruary 14, 2025
February 14, 2025
Rela Hospital Performs Advanced Endoscopic Breast Conservation Surgery for 60-Year-Old Cancer PatientFebruary 14, 2025
Assistive Technologies and Flexible Work Can Enhance Workforce Participation of Persons with Disabilities, Two New Reports FindFebruary 14, 2025
Pristyn Care Launches its First Super-speciality Hospital in South Delhi, Ushering in a New Era of Patient-centric HealthcareFebruary 14, 2025
The University of Manchester launches significant Scholarships for 2025 for Indian StudentsFebruary 13, 2025