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Biotech Conference Suggests Tempering Expectations For Eli Lilly Drug

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According to a recent note out by Leerink, investor expectations toward one of Eli Lilly and Co (NYSE: LLY)'s drugs may need to be readjusted.

During a biotech conference, panelists provided updates on Lilly's solanezumab, telling investors that the drug, while likely to be approved, may not best expectations.

Solanezumab, an amyloid antibody, may not meet expectations, panelists suggested per the note. The drug is currently undergoing a Phase III trial, and while the molecule has been deemed "very safe," its efficacy does not compare to the robustness found in aducanumab (Biogen Inc (NASDAQ: BIIB)'s comparable). Therefore, the panel of experts advising investors indicated that "the effect size will be small, but the side effect liabilities are also small."

Related Link: Eli Lilly Punished For Inline Report

The experts continued, elaborating that Lilly's molecule dosage was not "pushed as high as Biogen did." Additionally, Lilly's drug binds differently than aducanumab, setting it further apart from the Biogen's comparable.

While the clinical effect of Lilly's drug was "modest at lower doses" according to the experts, the drug is still likely to be approved if statistical significance is achieved as anticipated.

The note concluded explaining that the drug is not likely to be a homerun, but may be a single or a double and will likely be used at higher doses in real-world settings, as compared to that of the trial environment.

At time of writing, Eli Lilly was trading up 2.67 percent on the day at $73.17.

Posted-In: AducanumabAnalyst Color Biotech Long Ideas Short Ideas Movers Trading Ideas General

 

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