Eli Lilly shares hurt by breast cancer treatment drug's failure

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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.

Shares of Eli Lilly tumbled 3 percent.  FILE/ASSOCIATED PRESS
FILE/ASSOCIATED PRESS
Shares of Eli Lilly tumbled 3 percent.

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.

THE STOCK

Eli Lilly & Co. (LLY)

Thursday’s close:

$51.04 ▼ $1.57, or 2.98%

52-week range $49-$58

Annual dividend $1.96

Dividend yield 3.8%

Price-earnings ratio * 12

Total return YTD 6%

3-year ** 18%

5-year ** 7%

10-year ** 3%

Market $57.5 value billion

Note: Total returns through Thursday; * Trailing 12 months; ** Annualized

Source: FactSet, Associated Press

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