Vertex Terminates Gene Editing Collaboration with Verve Therapeutics

Vertex Pharmaceuticals has ended its research partnership with Verve Therapeutics, citing shifting priorities within its development portfolio. The collaboration, which began in July 2022, focused on an in vivo gene editing program for liver disease. This unexpected termination marks a significant change in the landscape of gene editing research and development.

Deal Termination and Financial Implications

Vertex's decision to withdraw from the four-year collaboration comes less than two years after the partnership's inception. The original agreement included a $25 million upfront payment to Verve, along with a $35 million equity investment. Additionally, the deal promised up to $406 million in potential milestone payments and research expense reimbursements.

Verve Therapeutics, which announced the partnership's end alongside its fourth-quarter financial results, will regain full rights to the preclinical liver disease program. The company plans to continue development independently, leveraging the bespoke gene editing technology developed during the collaboration.

Impact on Verve Therapeutics

The termination of the Vertex partnership represents a setback for Verve, whose stock price has seen a significant decline since its peak in September 2021. Shares of Verve, which once traded at $73, were relatively unchanged at $6.27 following the announcement.

Despite this setback, Verve maintains a focused pipeline in cardiovascular disease, with three lead therapies outside of the now-terminated liver disease program. The company's ongoing collaboration with Eli Lilly on VERVE-301, targeting the LPA gene to reduce blood lipoprotein(a) levels, remains active.

Upcoming Milestones and Future Outlook

Verve is preparing to deliver key data to Eli Lilly in the coming months. The company expects to release initial results from its Phase 1 study of VERVE-102, targeting the PCSK9 gene for cholesterol reduction, in the second quarter of 2025. Lilly's decision on opting into this program is anticipated in the second half of the year.

As the gene editing industry faces reevaluation from investors, companies like Verve are adapting to new commercial realities. The termination of the Vertex collaboration underscores the evolving landscape of pharmaceutical partnerships and the ongoing challenges in bringing gene editing therapies to market.