Share
The acquisition establishes establish a gene therapy programme at Lilly. Credit: Trust “Tru” Katsande on Unsplash.

Eli Lilly and Company has completed the previously announced acquisition of biotechnology company Prevail Therapeutics for about $1.04bn.

Last month, Eli Lilly entered a definitive agreement to acquire Prevail.

Prevail focuses on developing potentially disease-modifying AAV9-based gene therapies for neurodegenerative disease patients.

The latest deal establishes a new modality for drug discovery and development at Lilly.

It will expand the company’s research efforts by creating a gene therapy programme anchored by Prevail’s clinical-stage and preclinical neuroscience asset portfolio.

This deal also includes one non-tradable contingent value right (CVR) worth up to $4 per share in cash.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Under the deal, CVR must be paid upon obtaining first regulatory approval for commercial sale of a product from Prevail’s pipeline.

This approval can be from one of several countries such as the US, the UK, Japan, Germany, France, Italy or Spain.

The regulatory approval should take place by 31 December 2024 to avail the full value of the CVR.

Lilly noted that on failing to get approval on or before the above-mentioned date, the CVR value will be lowered by about 8.3 cents per month until CVR expiry on 1 December 2028.

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

Lilly concluded the acquisition through the merger of Tyto Acquisition with and into Prevail, with Prevail becoming Lilly’s wholly owned subsidiary.

Cell & Gene Therapy Coverage on Pharmaceutical Technology supported by Cytiva.

Editorial content is independently produced and follows the highest standards of journalistic integrity. Topic sponsors are not involved in the creation of editorial content.