Eli Lilly & Co. (LLY): Cancer Breakthrough Could Mean Big Gains for This Pharma Giant

Page 1 of 2

The battle against cancer is both valiant and frustrating. Medical researchers are constantly developing new drugs and treatment methods to fight the dreaded disease, and while most improvements come gradually, the really big progressive leaps in treatment are few and far between.

Pharmaceutical giant Eli Lilly & Co. (NYSE:LLY) announced today what it suspects could be one of those big leaps forward in the battle against one of the most prolific and pernicious varieties of the disease — lung cancer.

In a press release, Eli Lilly & Co. (NYSE:LLY) announced impressive clinical trial results for SQUIRE, the company’s recently completed Phase III clinical study. The study found that “patients with stage IV metastatic squamous non-small cell lung cancer experienced increased overall survival when administered necitumumab in combination with gemcitabine and cisplatin as a first-line treatment, as compared to chemotherapy alone.”

A positive result in a Phase III study, which is one of the critical hurdles before a drug is approved, is a big reason for optimism in patients afflicted with this variety of lung cancer. It’s also a big positive for Lilly, as the mass adoption of an effective new therapy means millions in revenue for many years down the line.

Certainly, traders viewed the news as a big positive, as Eli Lilly & Co. (NYSE:LLY) shares spiked 4.4% in pre-market trade before giving back some of those initial gains.

This news comes at the right time for Lilly, as the company is facing the patent expiration of several of its most profitable drugs, including its best-selling drug, antidepressant Cymbalta. Patent expiration on Cymbalta happens later this year, and that will undoubtedly result in much less revenue from the product in 2014.

As for necitumumab, the therapy still faces regulatory challenges, although nothing more than the usual approval process. The company plans to submit necitumumab to regulators for approval before the end of 2014, and while that may seem like a long time from now, in drug approval terms it’s just around the corner.

Interestingly, the thing that got Wall Street excited about the Lilly announcement on Tuesday was its unexpectedness. ISI Group analyst Mark Schoenebaum, who covers the stock, reflected on the analyst community’s surprise over the news.

In an email note to clients, Schoenebaum wrote, “This is a clear upside surprise, as consensus (and my) expectations for this drug were basically zero.” He added, “Recall that Bristol-Myers Squibb actually RETURNED this drug to Eli Lilly & Co. (NYSE:LLY) in a tacit declaration of no confidence a few years ago.”

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!