Eli Lilly and Co (NYSE:LLY)’s stock has retreated by 14% in the pre-market after the company said a Phase 3 study evaluating the company’s investigational drug solanezumab for the potential treatment of mild dementia caused by Alzheimer’s failed to meet the primary endpoint of showing a statistically significant slowing in cognitive decline compared to patients treated with placebo as measured by the ADAS-Cog14 (Alzheimer’s Disease Assessment Scale-Cognitive subscale). Due to the failure, Eli Lilly will not file regulatory submissions for solanezumab for the treatment of mild dementia due to Alzheimer’s disease. The company will take a fourth-quarter charge of around $0.09 per share after tax due to the study outcome. Nevertheless, the management still expects the company’s revenue to grow by at least 5% per year betewen 2015 to 2020. Of the 742 funds in our database, 55 were long Eli Lilly and Co (NYSE:LLY) at the end of September, up from 49 at the end of June.
Due to the Eli Lilly news, Biogen Inc (NASDAQ:BIIB) and Axovant Sciences Ltd (NYSE:AXON) are down 10% and 17%, respectively, in pre-market trading. Like Eli Lilly, Axovant Sciences Ltd (NYSE:AXON) is developingg a potential drug for dementia due to Alzheimer’s disease, a 5-HT6 antagonist, intepiridine. Meanwhile, a big part of Biogen’s pipeline’s success depends on aducanumab, another investigational treatment for early Alzheimer’s disease which was granted the Fast Track designation by the U.S. Food and Drug Administration a few months ago. Following Eli Lilly’s update, some traders are more cautious on intepiridine and aducanumab’s prospects. In terms of smart money sentiment, 81 funds tracked by us held shares of Biogen Inc (NASDAQ:BIIB) and 20 investors were long Axovant at the end of the third quarter.