Lilly wraps up acquisition of gene therapy company Prevail Therapeutics

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Eli Lilly and Company (Lilly) has completed its previously announced deal worth up to $1.04 billion of US gene therapy company Prevail Therapeutics.

The US pharma giant said that the deal gives it a new modality for drug discovery and development. Furthermore, it will extend its research efforts via the creation of a gene therapy program that will be steered by the portfolio of clinical-stage and preclinical neuroscience assets of Prevail Therapeutics.

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The lead gene therapies of the company in clinical development are PR001 for patients having Parkinson’s disease who have GBA1 mutations (PD-GBA) and neuronopathic Gaucher disease (nGD) and PR006, which is for patients suffering from frontotemporal dementia with GRN mutations (FTD-GRN).

Lilly acquisition of Prevail Therapeutics

Lilly acquisition of Prevail Therapeutics. Photo courtesy of Momoneymoproblemz/Wikipedia.org.

Mark Mintun – Lilly vice president of pain and neurodegeneration research, commenting on Lilly acquisition of Prevail Therapeutics, said: “We are pleased to complete the acquisition of Prevail and establish a gene therapy program at Lilly that has the potential to deliver transformative treatments for patients with neurodegenerative diseases such as Parkinson’s, Gaucher and dementia.”

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As per the terms of the deal signed in December 2020, Prevail Therapeutics will get $22.5 per share in cash or nearly $880 million plus one non-tradable contingent value right (CVR).

The CVR enables stockholders of the gene therapy company to get an additional payment of up to $4 per share in cash or about $160 million upon securing the first regulatory approval for commercial sale of one of its gene therapy products in any one of the countries – the US, the UK, Japan, Germany, France, Spain, or Italy.

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