Overview
- The Wall Street Journal, citing people familiar with the matter, reported that Lilly is negotiating a purchase valuing Ventyx at more than $1 billion, roughly double its pre-news market cap.
- Ventyx shares rose 28.5% to $10.05 during regular trading, were briefly halted for volatility, and jumped about 62.5% after hours to $16.34.
- Eli Lilly shares traded higher Wednesday following the reports that it is nearing a deal for Ventyx.
- Ventyx develops oral therapies targeting the NLRP3 inflammasome for inflammatory diseases, with a candidate in mid-stage testing for obesity-linked cardiovascular disease.
- Analysts say a transaction would bolster Lilly’s autoimmune and obesity treatment portfolio, and note growing big-pharma interest in NLRP3 from companies such as Roche and Novo Nordisk, while neither company has commented and coverage suggests an announcement could come soon.