Why Shares of Verve Therapeutics Shot Up 44.9% This Week
Verve Therapeutics (NASDAQ: VERV), a biotech company specializing in gene-editing therapies to treat cardiovascular disease, has seen its shares rise 44.9% so far this week, according to data from S&P Global Intelligence. The stock closed last Friday at $23.71 and opened on Monday at $25.06. It hit a weekly high of $36.79 on Wednesday. Over the past 52 weeks, the stock's low is $10.70 and its high is $78.
On Wednesday, the company's announced a collaboration with Vertex Pharmaceuticals (NASDAQ: VRTX) to develop a gene-editing program to treat an undisclosed liver disease. As part of a four-year deal, Vertex will underwrite the costs of the program. It sent Verve an upfront payment of $25 million and bought $35 million worth of Verve stock. Verve also will be eligible for $66 million in success payments and up to $345 million in milestone payments and royalties on future net sales.
The next day, Verve said it was selling $225 million worth of stock in a secondary offering. Ordinarily, word of that kind of share dilution would send the stock plummeting, but the good news about the deal with Vertex was enough to keep the shares buoyant.
Source Fool.com
