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Recent Developments at Eli Lilly

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Developments at Eli Lilly

As discussed earlier, both Eli Lilly’s (LLY) Human Pharmaceuticals and Animal Health segments’ performances were positive in 2016. 

Let’s take a look at some of the more recent developments in these segments.

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Corporate development

Recent corporate developments for Eli Lilly include the following:

  • On March 24, 2017, Eli Lilly announced its plans to invest $850 million into US capital projects to enhance the facilities across its US enterprise.
  • On March 1, 2017, Eli Lilly completed its acquisition of CoLucid Pharmaceuticals (CLCD) for $46.50 per share.
  • On January 3, 2017, Eli Lilly completed its acquisition of Boehringer Ingelheim’s subsidiary Vetmedica’s US Canine, Feline, and Rabies vaccines portfolio, including eight new product lines and a manufacturing and research and development site.

Regulatory developments

The following are some of LLY’s recent regulatory developments:

  • On February 13, 2017, the European Commission approved the use of Olumiant (baricitinib) tablets, once-daily tablets for the treatment of active rheumatoid arthritis in adults. This makes Olumiant the first JAK (janus kinase) inhibitor to be approved in the European Union for the treatment of rheumatoid arthritis.
  • On February 8, 2017, LLY announced that the FDA had approved a label update of Trulicity (dulaglutide) to include the use of Trulicity in combination with basal insulin for improving blood sugar in patients with type 2 diabetes.
  • On January 13, 2017, LLY and Incyte (INCY) announced that the FDA had extended the review period of the new drug application for baricitinib for use in the treatment of patients with moderate to severe rheumatoid arthritis. The action date in now expected to be in 2Q17.

Clinical developments

The following are some recent clinical developments for Eli Lilly:

  • On March 20, 2017, LLY announced that MONARCH2, a Phase III clinical trial evaluating abemaciclib in combination with fulvestrant for the treatment of HR+ and HER2- advanced breast cancer, had met its primary endpoints.
  • On March 4, 2017, LLY announced the results of its IXORA-S study, which showed that its drug Taltz (ixekizumab) had achieved superior efficacy at 24 weeks compared to Johnson & Johnson’s (JNJ) Stelara (ustekinumab) for the treatment of patients with moderate to severe plaque psoriasis.

Investors can consider ETFs such as the PowerShares Dynamic Pharmaceuticals ETF (PJP), which holds ~5.8% of its total assets in Eli Lilly, ~5.1% in Pfizer (PFE), ~5.1% in Merck & Co. (MRK), and ~4.9% in Gilead Sciences (GILD)

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