Shares of Verve Therapeutics skyrocketed 74.32% in Tuesday's pre-market trading session following the announcement that pharmaceutical giant Eli Lilly has agreed to acquire the gene-editing startup for up to $1.3 billion. This significant uptick comes as investors react enthusiastically to the potential deal, which could substantially boost Verve's market position and resources in the competitive biotech sector.

Under the terms of the agreement, Eli Lilly will pay $10.50 per share in cash for Verve, representing a premium of approximately 113% to the 30-day volume-weighted average trading price of Verve's common stock. The deal includes an upfront payment of about $1 billion, with an additional $300 million contingent on Verve achieving certain clinical milestones. This structure underscores Eli Lilly's confidence in Verve's pipeline and potential for future growth.

Verve Therapeutics, known for its innovative approach to genetic medicine, is currently developing VERVE-102, a potential first-in-class gene-editing treatment targeting PCSK9, a gene linked to cholesterol levels and cardiovascular health. The acquisition by Eli Lilly is expected to accelerate the advancement of this therapy and other gene-editing technologies in treating cardiovascular diseases. This strategic move aligns with Eli Lilly's efforts to expand its experimental drug pipeline beyond its successful weight-loss and diabetes treatments, potentially shifting the treatment paradigm for cardiovascular disease from chronic care to one-time treatments.