The study, conducted in association with UK-based AstraZeneca (AZN), was discontinued after it failed to meet the endpoints of effectively treating early-stage Alzheimer’s and moderate memory loss associated with the disease.
The pharma world is witnessing a renewed vigor in the development of therapeutics for Alzheimer’s and dementia after recent research provided a better understanding of the DNA damage in the affected patients. The healthcare industry has been spending billions of dollars on development of experimental clinical formulations that can slow down the progress of the disease.
Lilly halted two advanced trials on lanabecestat, its experimental formulation for Alzheimer’s disease
Meanwhile, the good news for Lilly investors is that the company has reaffirmed its outlook for the current fiscal year and the next two years, saying the costs associated with the discontinued clinical trials are not significant enough to impact the financial performance.
The outcome of the study on lanabecestat came as no surprise to most analysts who have generally been pessimistic about the various clinical trials being carried out in the field, considering the back-to-back failures suffered by pharma companies in the past.
Earlier, Merck & Co. (MRK) had to discontinue its multi-level studies on verubecestat after they showed no signs of yielding the desired results. The setbacks underscore the complexity and mysterious nature of the devastating health problem. It is estimated that in the absence of effective therapeutic solutions, the US government will be spending more than $1 trillion on Alzheimer’s care by 2050.
Eli Lilly’s stock, which made some modest gains since the beginning of the year, traded slightly lower in the early hours of Tuesday’s session.