Pharma Stock Roundup: Lilly Alzheimer's Drug Fails, J&J In Acquisition Talks With ALIOF
Zacks Investment Research | Nov 27, 2016 08:49PM ET
The big news last week was the high-profile failure of Lilly’s (NYSE:LLY) investigational Alzheimer’s disease drug, solanezumab. While the news dented Lilly’s shares with the stock touching a 52-week low, other companies involved in developing Alzheimer’s disease treatments were also not spared. The development setback just goes to show how a single company’s R&D setback can impact the entire sector.
Meanwhile, does Johnson & Johnson’s (NYSE:JNJ) interest in acquiring Actelion (OTC:ALIOF) imply the beginning of increased merger and acquisition (M&A) activity in the pharma and biotech sector?
Recap of the Week’s Most Important Stories
Lilly Stumbles in Phase III for Alzheimer’s Drug: Lilly’s shares tumbled following the release of highly-awaited data on its experimental Alzheimer’s disease (AD) treatment, solanezumab, from a late-stage study. The candidate was being investigated to see whether it can slow the progression of memory problems associated with amyloid, a protein that forms plaques in the brains of people with Alzheimer’s. Solanezumab failed to meet the primary endpoint in the study that was conducted in patients with mild dementia due to AD. Lilly said that while results directionally favored solanezumab, the magnitudes of treatment differences were small. With this latest failure, Lilly has decided to drop the development of solanezumab and will be taking a charge of about 9 cents per share in the fourth quarter (Read more: Data Presented at ACR, Bristol-Myers Inks Immuno-Oncology Deal ).
What's Next in the Pharma World?
Watch out for the usual pipeline and regulatory news as well as an update on the J&J-Actelion acquisition talks. Moreover, several companies including J&J will be present at the annual meeting of the American Society of Hematology (ASH) with data.
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