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