Eli Lilly to acquire Prevail Therapeutics for $1.04bn, expanding gene therapy pipeline

Eli Lilly and Company has signed a deal worth up to $1.04 billion to acquire Prevail Therapeutics, a prominent US gene therapy company specializing in disease-modifying AAV9-based gene therapies for neurodegenerative disorders. The strategic acquisition is expected to significantly enhance Lilly’s drug discovery and development capabilities, particularly in the gene therapy space. As the pharmaceutical giant focuses on expanding its portfolio, this move is seen as a key step toward advancing treatments for some of the most challenging and complex neurological conditions.

Prevail Therapeutics is renowned for its work in clinical-stage and preclinical gene therapies, with a strong pipeline targeting diseases like Parkinson’s disease, Gaucher disease, and frontotemporal dementia. Two of the company’s leading therapies, PR001 and PR006, are already in clinical trials, designed to treat specific patient groups with genetic mutations. PR001 aims to address Parkinson’s disease in patients with GBA1 mutations and neuronopathic Gaucher disease, while PR006 is targeting frontotemporal dementia associated with GRN mutations. Additionally, Prevail’s preclinical pipeline includes therapies aimed at neurodegenerative diseases like Alzheimer’s, amyotrophic lateral sclerosis (ALS), and Parkinson’s disease.

A transformative approach to neurodegenerative disease treatment

Mark Mintun, Eli Lilly’s vice president of pain and neurodegeneration research, emphasized the immense potential of gene therapy for treating these debilitating diseases. Mintun noted that the acquisition of Prevail Therapeutics would bolster Lilly’s existing expertise in the field, enabling the company to build a new, expansive gene therapy program. He expressed excitement about working with Prevail’s team to bring these promising therapies through clinical development, which could ultimately offer transformative treatments for patients suffering from neurodegenerative conditions.

This acquisition is expected to accelerate Lilly’s efforts to deliver disease-modifying therapies to patients with unmet medical needs. By acquiring Prevail, Lilly is not only gaining access to cutting-edge technology but also securing a skilled team that has already made significant strides in gene therapy research and development.

Deal structure and financial details

Under the terms of the deal, Prevail Therapeutics’ shareholders will receive $22.5 per share in cash, approximately $880 million at the time of closing, alongside a non-tradeable contingent value right (CVR). The CVR entitles Prevail’s shareholders to receive up to an additional $4 per share in cash, contingent upon the first regulatory approval for the commercial sale of one of Prevail’s gene therapy products in key markets such as the US, Japan, the UK, Germany, France, Spain, or Italy. This milestone payment could add up to $160 million in additional value.

Asa Abeliovich, founder and CEO of Prevail Therapeutics, spoke about the synergy between the two companies. He highlighted Prevail’s progress in advancing two first-in-class gene therapy programs and establishing robust manufacturing platforms. Abeliovich believes that with Eli Lilly’s global scale and resources, the partnership will allow for the rapid development and distribution of these therapies, ultimately benefiting patients worldwide.

What’s next for the gene therapy pipeline?

The acquisition is subject to customary regulatory approvals, including the tender of a majority of Prevail’s outstanding shares, as well as other closing conditions. If all conditions are met, the deal is expected to be finalized in the first quarter of 2021, setting the stage for a new era of gene therapy development under the Lilly banner.

Eli Lilly’s acquisition of Prevail Therapeutics marks a pivotal moment in the pharmaceutical industry, signaling the company’s commitment to leading the charge in innovative treatments for some of the most pressing neurodegenerative diseases of our time. As gene therapy continues to evolve, this deal could prove to be a defining step in transforming the way these diseases are treated, offering hope to millions of patients worldwide.