Lilly’s CVR-heavy takeout gives lifeline to Sigilon’s diabetes program

A heavily backloaded deal to acquire Sigilon will give Lilly full control of a slowly advancing Type I diabetes program in which the pharma has already invested tens of millions of dollars, at an upfront price that provides a meager exit for founding investor Flagship.

Most of the deal’s value is tied up in three contingent value rights that could eventually reward shareholders of Sigilon Therapeutics Inc. (NASDAQ:SGTX) with substantially more than the deal’s $34.6 million upfront payment, at $14.92 per share. But even if the CVRs are fulfilled and the entire $309.6 million deal value is realized, Sigilon would still be sold for less than its value upon completing its 2020 IPO, which was about $550 million...