Eli Lilly’s $1.3 billion acquisition of Verve Therapeutics represents a strategic move into cardiovascular genetic medicine. The pharmaceutical behemoth paid a substantial premium of approximately 113% above Verve’s 30-day volume-weighted average trading price, triggering an 80% surge in Verve’s stock price on June 17, 2025.

The acquisition aligns with Eli Lilly’s broader diversification strategy beyond its core diabetes and obesity treatment portfolio. Verve’s innovative gene-editing technology, which permanently deactivates the PCSK9 gene to address high cholesterol, represents a breakthrough approach to cardiovascular disease treatment. This move positions Lilly to capture value in the high-impact cardiovascular therapeutics market while expanding its genetic medicine capabilities. On a separate note, see – SoundHound AI: Buy, Sell Or Hold SOUN Stock At $10?

Despite the premium paid for Verve, Eli Lilly’s core valuation metrics suggest reasonable positioning relative to historical norms. Trading at trailing adjusted earnings of $13.76 per share, the company’s current valuation sits below its three-year average P/E ratio of 66 times. This suggests that while the stock commands a premium, it remains within established valuation parameters given the company’s strong financial and operational performance as seen in dashboard.

Several key risks warrant attention in evaluating Eli Lilly stock:

The Verve Therapeutics acquisition reinforces Eli Lilly’s position as an attractive investment opportunity, supported by strong demand for its obesity treatments and successful diversification into high-potential therapeutic areas. That said, there always remains a meaningful risk when investing in a single, or just a handful, of stocks. Consider Trefis High Quality (HQ) Portfolio which, with a collection of 30 stocks, has a track record of over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics.