Eli Lilly completes $1.04bn acquisition of Prevail Therapeutics to expand gene therapy program

Eli Lilly and Company has officially finalized its acquisition of Prevail Therapeutics in a deal valued at up to $1.04 billion. This acquisition represents a significant strategic move for the US-based pharmaceutical giant, enabling it to expand its gene therapy portfolio and enhance its research and development efforts in the rapidly advancing field of gene therapies. Through this acquisition, Eli Lilly aims to push forward with its exploration of transformative treatments for neurodegenerative diseases, including Parkinson’s disease, Gaucher disease, and frontotemporal dementia.

What does the Eli Lilly and Prevail Therapeutics deal mean for gene therapy development?

The acquisition of Prevail Therapeutics marks a pivotal moment for Eli Lilly, allowing it to gain access to a promising pipeline of clinical-stage and preclinical gene therapy assets. The deal positions Eli Lilly to accelerate its drug discovery capabilities, particularly through gene-based treatments aimed at neurodegenerative conditions that have long been difficult to treat. Prevail’s cutting-edge therapies, including PR001 and PR006, provide Lilly with a strong foundation in advancing gene therapies targeting diseases such as Parkinson’s, Gaucher disease, and frontotemporal dementia.

PR001 is designed to treat Parkinson’s disease in patients with GBA1 mutations (PD-GBA), as well as neuronopathic Gaucher disease (nGD), a condition that affects the nervous system. PR006, on the other hand, is targeted at patients suffering from frontotemporal dementia (FTD) with GRN mutations. These therapies are among the first of their kind, potentially offering life-changing outcomes for patients with these challenging neurodegenerative diseases. The addition of Prevail Therapeutics’ assets gives Eli Lilly the opportunity to build a robust gene therapy program, positioning it at the forefront of innovation in neuroscience.

Mark Mintun, the Vice President of Pain and Neurodegeneration Research at Eli Lilly, stated that the company is excited to complete the acquisition of Prevail and establish a new gene therapy program that holds the potential to deliver transformative treatments for patients with neurodegenerative diseases such as Parkinson’s, Gaucher disease, and dementia. His remarks reflect the company’s commitment to improving outcomes for patients suffering from these complex conditions, many of which lack effective treatment options.

How will the financial terms of the acquisition benefit Prevail Therapeutics’ shareholders?

Under the terms of the deal, which was first announced in December 2020, Prevail Therapeutics will receive $22.5 per share in cash, amounting to nearly $880 million. In addition, the acquisition agreement includes a non-tradable contingent value right (CVR) for Prevail’s shareholders. This CVR provides an additional payment of up to $4 per share, or about $160 million, upon receiving the first regulatory approval for the commercial sale of one of Prevail’s gene therapy products in major international markets such as the United States, the United Kingdom, Japan, Germany, France, Spain, or Italy.

The future of gene therapy research and development at Eli Lilly

With this acquisition, Eli Lilly strengthens its position as a leader in the gene therapy space, particularly in the field of neurodegenerative diseases. As the pharmaceutical industry continues to focus on innovative, targeted treatments, Eli Lilly’s investment in gene therapy highlights its dedication to advancing medical science and improving patient outcomes. By integrating Prevail Therapeutics’ pipeline into its own operations, Eli Lilly is poised to make substantial advancements in gene-based therapies for some of the most challenging and underserved medical conditions.

The deal also underscores Eli Lilly’s broader commitment to neuroscience research, enhancing its overall capabilities in discovering new treatments that could offer patients a better quality of life. Given the growing potential of gene therapies, Eli Lilly’s acquisition of Prevail Therapeutics represents a major leap forward for both the company and the industry.

The $1.04 billion acquisition of Prevail Therapeutics by Eli Lilly is a defining moment in the world of gene therapy. With this acquisition, Lilly not only expands its research capabilities but also strengthens its commitment to finding transformative treatments for patients with neurodegenerative diseases. As gene therapy continues to evolve, this acquisition positions Eli Lilly at the forefront of innovation, with the potential to deliver life-changing therapies for millions of patients worldwide.