IBJNews

Lilly shares rise on possibility for Alzheimer’s drug

Back to TopCommentsE-mailPrintBookmark and Share

Eli Lilly and Co. stock rose to a one-month high Tuesday after an analyst said the possible success of the company’s experimental Alzheimer’s drug could double the share price.

Lilly, based in Indianapolis, gained 3.9 percent, to close at $38.86 on Tuesday. They continued to rise Wednesday morning, climbing another 2 percent, to $39.63 each.

Expectations have been “extraordinarily low” for the success of Alzheimer’s drugs, so a Lilly success with solanezumab could boost the shares 50 percent to 100 percent, Tim Anderson, an analyst with Sanford C. Bernstein, said in a report.

“Eli Lilly and several of its competitors are willing to spend hundreds of millions of dollars on what is essentially a massive lottery ticket,” Anderson said. “If their drugs are successful in delaying the progression of Alzheimer’s disease, they could end up making Lipitor look like a mid-sized product,” he said in a note to clients sent Monday. Sales of solanezumab could reach $9 billion by 2020, he said.

Solanezumab is an antibody designed to clear protein fragments called beta amyloid that clutter the brains of patients with Alzheimer’s disease. Pfizer Inc., Johnson & Johnson and Elan are testing bapineuzumab, a similar drug.

Anderson cautioned that the drug’s chances of success are only 10 percent to 20 percent. Because of the large potential payoff, drugmakers have been willing to gamble on the medicines.

A leading theory of the disease is that amyloid causes the disease by harming brain cells. Debate over whether the theory is correct has increased as other drugs that target the protein have failed or shown murky results in trials. In August 2010, Lilly stopped development of a pill, semagacestat, that blocked amyloid by another mechanism, after trials found it didn’t slow disease progression.

As many as 5 million Americans have Alzheimer’s disease, according to the U.S. Centers for Disease Control and Prevention in Atlanta. Alzheimer’s is a degenerative neurological condition with no approved treatment to slow brain cell death.


 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. What became of this project? Anyone know?

  2. Scott, could you post an enlarged photo of the exterior of the building? This will be a great addition to Walnut Street. This area will only continue to develop with additions like this. Also, please give us more updates on the "Cultural Trail light" expansion. Also a great move for the city, as long as there is maintenance money set aside.

  3. Great story IBJ! Citizens don't have a real sense of the financial magnitude of supporting Indy's sports and tourism sector. The CIB was a brilliant idea for creating a highly integrated public-private partnership to support this sector from the economic activity it generates. Unfortunately, most folks think the benefits of that economic activity accrue directly to the City budget, and it doesn't. So though the CIB is facing lean times (covering its costs while maintaining minimally acceptable reserves), the City is operating with deficit - less tax revenue than expenses each year - with a very fragile reserve balance. That's why it's so challenging for the City to fund basic needs or new intitatives (e.g. pre-k education; new jail), and some credit rating agencies have downgraded Indy from it's past stellar AAA status. More reporting on City finances would be welcomed.

  4. Sure, I'll admit that it bugs me to see that the IBJ.COM censors it's blog posts almost as much as the D of I does when someone points out the falsehoods and fabrications. _____But I think it bothers me almost as much that Captain/Defender/Disciple get his yanked too. You see, those of us with a sense of integrity, humanity, compassion, and a need for fact based opinion WANT to see all of his screeds posted. It makes our point so much better than we can do it ourselves.

  5. We're conflating two very different topics. Voter fraud is a myth and excessive gun violence is all too real. I just hope rational gunowners decide to stop being shouted down by the, well, let's call them "less rational" ones.

ADVERTISEMENT