The dictionary describes the word “verve” as having energy, or vitality. It seems appropriate, then, that shares of biotech startup Verve Therapeutics, Inc. (VERV, Financial) are up nearly $170% to $51 less than a month after its IPO at $19 a share.
Verve is one of more than 35 biotechs that have joined the public markets this year, raising a total of more than $7 billion, according to an article in BioPharma Dive. So far, the Cambridge, Massachusetts-based firm is doing better than many of its counterparts, about half of which are trading below their offering prices.
Perhaps the warm reception Verve received is due to its far greater financial upside compared to most biotechs. Most biotechs are going after rare genetic diseases. With such diseases, the patient population - and thus the revenue potential - is relatively limited. Verve, meanwhile, is striving to develop drugs for one of the most common and deadly health problems - heart disease, which is the number one cause of death in the U.S., accounting for 13% of fatalities, according to 2018 data.
Verve is headed by company co-founder Sekar Kathiresan, an acknowledged leader in the field of cardiology. He explained that the company’s gene-editing technology is more targeted than earlier versions, allowing its scientists to alter a single DNA "base." Verve gained access to its technologies via partnerships with Beam Therapeutics Inc. (BEAM, Financial) and the Alphabet Inc.'s (GOOG, Financial) (GOOGL, Financial) life sciences research company Verily Life Sciences, as well as licensing deals with Harvard University and the Broad Institute, which is run collaboratively by Harvard and MIT.
Caption: Verve stock has shot up about 170% since its mid-June IPO
Verve’s mission is to develop a treatment that permanently shuts off two genes that help regulate cholesterol - PCSK9 and ANGPTL3. The treatment for CSK9 could start being tested on humans as early as next year.
Existing treatments like statin drugs (such as Lipitor) work well in lowering cholesterol but they have problems like high cost, limited access in poorer countries and compliance - that is, making sure people take their medication.
By permanently turning off the PCSK9 gene, Verve hopes to lower patients’ cholesterol with a one-time remedy. "We're ultimately looking to treat and hopefully eradicate heart disease," Kathiresan told BioPhama Dive in a January interview.
iHealthCareanalyst reported the global market for dyslipidemia (cholesterol) drugs is forecast to reach $48 billion by 2027, growing at a compound rate of nearly 10% going forward. The increase will be driven by greater numbers of patients requiring treatment and the emergence of new therapies. PCSK9 inhibitors are in the latter category and their cost could cause pushback from medical professionals and insurers.
To get an idea of what Verve’s treatment may run at, we can look at the only gene therapy currently on the market: Luxturna from Spark Therapeutics, Inc. (ONCE, Financial). The retinal treatment has a list price of $850,000 for both eyes.
