Eli Lilly and Co. ends drug development, sending stock plummeting
Lilly said it has ended late-stage development of evacetrapib, part of a study involving 12,095 patients in 37 countries
Pharmaceutical giant Eli Lilly and Co.'s stock tumbled nearly 8 percent Monday after it said that it will discontinue development of a key cholesterol drug.
Lilly said it has ended late-stage development of evacetrapib, which was part of a study involving 12,095 patients at 540 sites in 37 countries. The therapy was in Phase 3 development — the final stage before a drug can be submitted to the Food and Drug Administration for approval.
The pharmaceutical company said the drug — which was supposed to treat people at a high risk of atherosclerotic cardiovascular disease — displayed "insufficient efficacy."
Lilly shares (LLY) fell more than 10 percent to $77 just before 8:30 a.m. The shares regained some ground after the opening bell but closed down $6.70, or 7.8 percent, at $79.44.
An independent data monitoring committee "suggested there was a low probability the study would achieve its primary endpoint based on results to date," Lilly said in a statement.
The company emphasized that the study was not halted because of safety problems.
"We're obviously disappointed in this outcome, as we hoped that evacetrapib would offer an advance in treatment for people with high-risk cardiovascular disease. We'll be working with investigators to appropriately conclude these trials," said David Ricks, Lilly senior vice president and president of Lilly Bio-Medicines. "We remain confident in our pipeline as we prepare for launches in other therapeutic areas with significant unmet needs."
The company expects to take a $90 million pre-tax charge to account for the drug's discontinuation.
Wall Street had high hopes for evacetrapib. Just three days before Lilly discontinued the drug, Credit Suisse analyst Vamil Divan told investors that he was "cautiously optimistic" about the drug, saying that "much of the investor focus" was on evacetrapib and another therapy.
Citing the company's diverse portfolio, Divan had upgraded his target price on Credit Suisse shares from $89 to $105.
Follow USA TODAY reporter Nathan Bomey on Twitter: @NathanBomey.