A potential breast cancer treatment in development by Eli Lilly failed to meet its main goal in a late-stage study comparing it to a fake drug. Shares of the drugmaker tumbled 3 percent on the news.
The Indianapolis company no longer plans to seek regulatory approval for the drug, ramucirumab, in patients with a form of breast cancer that has spread. However, Lilly will seek approval to use the treatment in combination with chemotherapy in stomach cancer patients after it performed better in a separate study on those patients.
Investors had relatively low expectations for the drug in treating breast cancer, Bernstein financial analyst Dr. Tim Anderson said in a research note. He expects the drug to generate about $600 million in annual revenue by 2020 from its use in treating gastric cancer.