Eli Lilly & Co (NYSE:LLY) shares elevated on necitumumab development
A large number of investors had given up on necitumumab, Eli Lilly & Co (NYSE:LLY)’s experimental cancer drug after it very recently faced a volley of setbacks. However, the dark clouds seem to have parted and the in a late-stage study there is some evidence that it extends patient survival. This has revived hopes for this medication and on Tuesday, LLY shares climbed 2.61% on the news.
The pharma company is in dire need of lucrative new products as the ones that are already in the market have the sword of generic and cheaper medication hanging above them. LLY said that it will be seeking the U.S FDA’s approval before 2014-end, for necitumumab.
Analysts had also given up on the drug and many leading market watchers said that their expectations of necitumumab were almost nil. Now that the trial has been successful, analysts are sitting up and taking notice. They are of the opinion that this drug has the potential to generate annual sales that would stand above the $1B mark. This is under the assumption that the data that is still undisclosed is satisfactory and that the FDA gives necitumumab the nod.
Slated to be the winner
LLY said that the complete data from their study will eventually be presented at a medical-meeting this year. The company said that when necitumumab is combined with standard chemotherapy agents, cisplatin and gemcitabine, it raised the overall survival rate in comparison to patients who were undergoing only chemotherapy. The drug had some side-effects like blood clots. As a matter of fact, this was the problem that has stalled the previous late-stage trail of its injectible medication.
The company said that if it receives FDA clearance, necitumumab, will be the very first biotech-treatment for this condition. The new-generation drugs that target very specific gene-mutations and are grown inside living cells can literally cost tens of thousands of dollars annually.