Lilly To Take $30M Charge After Relapse Cancer Drug Disappoints in Trial

Eli Lilly (NYSE:LLY) said Friday it will take a current-quarter charge of $30 million after its exploratory relapse cancer drug enzastaurin failed to meet expectations in a late-stage study.

The pharmaceutical giant will stop the development of the molecule, which had been explored in the Phase III clinical Prelude trial as a monotherapy in the prevention of relapse in patients with diffuse large B-cell Lymphoma.

Shares of Indianapolis-based Lilly eased about 1% in early trade to $54.

The drug failed to show a “statically significant increased” when compared with the placebo, unable to drastically improve survival in disease-free patients at high risk of relapse following Rituximab-based chemotherapy, Lilly said.

“We are disappointed in the results that we're announcing today," said Richard Gaynor, vice president of product development and medical affairs for Lilly Oncology.

He said, though, that Lilly’s oncology pipeline remains one of “the most robust across the industry,” containing more than 20 molecules, including to late-stage studies in five different tumor types.

The company continues to anticipate full-year earnings in the range of $3.82 to $3.92 a share on sales of $22.6 billion to $23.4 billion, both bracketing the consensus view of $3.91 a share on $22.8 billion in sales.

Lilly last month posted stronger-than-expected quarterly first-quarter earnings, as positive pipeline performance helped to offset the effects of a lack of exclusivity of its schizophrenia drug Zyprexa.