Eli Lilly stock soars following data suggesting its Alzheimer's drug can slow illness
Shares of Eli Lilly and Company surge after drug trial data suggests the pharmaceutical company's Alzheimer's treatment drug can potentially slow the illness.
Video Transcript
- Well, my pick, Eli Lilly, of course-- that's why I'm here. The company's stock really soared on news of its Alzheimer's drug today. Strong results from a phase III trial that could add Eli Lilly in competition in a new market that's currently dominated just by Biogen and Eisai. So
Lilly's drug Don-- I knew I was going to mess up on it-- donanemab showed a 35% reduction in cognitive decline among patients, and that is more than Biogen's and Eisai's Leqembi. But there are some concerns over Eli Lilly's drug and the side effects like brain swelling in about 30% of patients. We also saw three patient deaths, two specifically tied to the drug. So that could weigh on regulatory approval.
But the interesting part about it is that would be the third drug, if you include Biogen's two, to this class of drugs. And it kind of proves the theory of targeting plaque buildup in the brain as a way to treat Alzheimer's. That's something that has been criticized. There's been controversy over it. So this really starts adding building blocks to this theory.
- Even though there are some questions, some concerns, I should say, about the side effects, I think the progress that has been made on the treatment of Alzheimer's is, obviously, something that many people are applauding. We know that this disease affects around 6 million Americans. About 2 million Americans over the age of 65 are in the early stages of Alzheimer's. So the fact that we are seeing some progress here, obviously, good news here for millions of Americans.
And then, also, the investor side of the story. A number of analysts today saying that some have been staying on the sidelines of this drug. This improvement, these results here, might be enough to get more investors involved-- more investors, I guess, more positive on Eli Lilly.
- But Eli Lilly has been having a strong year when it comes to R&D, especially the D side of things-- development, the development of drugs. I mean, between this one and then, of course, in the weight loss area, Mounjaro, right?
- Yep, absolutely.
- That is expected to be a blockbuster drug, if you will, because it's already in play in one respect, but now moving it to the weight loss side of the picture. I mean, Eli Lilly really seeking significant approvals this year, and we are seeing the effect to the stock today with regard to the Alzheimer's progress. But again, the weight loss drug has been-- or potential weight loss drug. I know it's not a weight loss drug.
- Yeah.
- Yes!
- The type 2 diabetes drug. [INAUDIBLE]
- Exactly, it's technically a type 2 diabetes drug. But we know it's already in the works for weight loss.
