Ventyx Biosciences Stock Soars 37% on Eli Lilly Takeover Reports
The pharmaceutical giant is reportedly in advanced talks for a deal valued at over $1 billion, aiming to acquire Ventyx's promising autoimmune drug pipeline.
Shares of Ventyx Biosciences (NASDAQ: VTYX) skyrocketed Tuesday after reports emerged that pharmaceutical behemoth Eli Lilly and Company (NYSE: LLY) is in advanced discussions to acquire the clinical-stage biotechnology firm.
The potential cash deal, valued at over $1 billion, proposes an offer of $14 per share, according to sources familiar with the matter. The news sent Ventyx shares soaring 37.11% to close at $13.78 in Tuesday trading, just shy of the reported offer price. Trading volume surged to nearly 8 million shares, dramatically outpacing its daily average.
The acquisition would represent a strategic move for Eli Lilly, a nearly trillion-dollar company, to bolster its portfolio with Ventyx's pipeline of novel, orally-delivered therapies for inflammatory and autoimmune diseases. Ventyx is developing a portfolio of promising drug candidates, including NLRP3 and TYK2 inhibitors, which are considered high-value targets for treating a range of conditions. For Eli Lilly, such a "bolt-on" acquisition aligns with a broader industry trend of large pharmaceutical companies purchasing smaller, innovative biotech firms to acquire promising assets rather than developing them in-house.
At the heart of the potential deal is Ventyx's drug development pipeline. The San Diego-based company has several candidates in mid-stage clinical trials, including VTX958, a TYK2 inhibitor, and two NLRP3 inhibitors, VTX2735 and VTX3232. According to a company update, Ventyx is advancing these programs with several data readouts anticipated in the coming year, making its assets particularly attractive for a buyer seeking to expand its presence in the immunology space.
The reported $14 per share offer represents a significant premium to Ventyx's recent trading levels. Before the news broke, the stock had a market capitalization of approximately $599 million. The proposed acquisition price brings the company's valuation closer to the consensus analyst target price of $15.14, suggesting that Wall Street already saw significant upside in the company's clinical programs.
For Ventyx shareholders, the deal would crystallize a substantial return, especially for those who invested when the stock traded at its 52-week low of $0.78. The company, which is in the pre-revenue stage common for clinical biotechs, focuses on developing small molecule drugs that can be taken orally, a key advantage over injectable biologic treatments that currently dominate the autoimmune market.
Neither Ventyx Biosciences nor Eli Lilly have officially commented on the reports. As the market awaits confirmation, investors will be closely watching for any formal announcement. The successful completion of the deal would further solidify Eli Lilly's aggressive growth strategy and provide a powerful validation of Ventyx's scientific platform and development strategy. Analysts at Nasdaq have noted the move as a logical step for a major player like Lilly to deepen its immunology pipeline.