Eli Lilly & Co. (LLY) AD Portfolio Uncertain Following Sola Failure - Leerink
- Netflix, Inc. (NFLX) Tops Q4 EPS by 1c; Subs Beat Views
- S&P 500 ends up slightly with boost from financials
- Nestle Said Examining Takeover of Mead Johnson (MJN) - Source
- Fed's Yellen says 'makes sense' to gradually raise interest rates
- UPDATE: Fed Beige Book: Wages gain modestly in most areas amid tight job market
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Leerink Partners analyst Seamus Fernandez weighed in on Eli Lilly & Co. (NYSE: LLY) after sola failed, saying this makes the future of the company's AD portfolio uncertain.
Fernandez commeted, "This morning LLY announced that its EXPEDITION 3 trial of solanezumab (sola) did NOT meet its primary endpoint of ADAS-cog14, a measure of cognition; secondary endpoints, while trending in the right direction, also had only small magnitude of benefits. We were disappointed, but not surprised by the result. In our forecast, we attributed ~30% probability of success for the trial with ~$1.5B risk-adjusted peak sales, which contributed ~$10-12/shr to our DCF estimate. This is the 3rd Phase 3 failure of LLY's solanezumab. Despite moving earlier into the disease progression (mild patients) and using biomarker to select patients (beta amyloid PET imaging), the treatment effect still proved to be not sufficient to result in a significant slowing of cognitive decline. This result will no doubt cast a shadow over LLY's Alzheimer's Disease (AD) pipeline portfolio, which is heavily based on the beta amyloid hypothesis. Other competitors' programs based on this hypothesis will probably continue, but this will likely have negative read-through on these results in the short term."
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Eli Lilly & Co. (LLY), Incyte (INCY) Announce FDA Extends Review Period for Baricitinib
- Lilly and CoLucid Pharmaceuticals Announce Agreement for Lilly To Acquire CoLucid
- Target (TGT) PT, Estimates Cut at Buckingham Research Following Miss
Create E-mail Alert Related CategoriesAnalyst Comments, FDA
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!