Please ensure Javascript is enabled for purposes of website accessibility

Why Eli Lilly Is Soaring Today

By Prosper Junior Bakiny – Jun 16, 2020 at 12:36PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company announced positive data from a clinical trial.

What happened? 

Shares of Eli Lilly (LLY 0.35%) surged on Tuesday morning after the drugmaker reported positive results from a clinical trial for Verzenio (abemaciclib), a cancer treatment. The company's stock is up by 15.2% as of 12:08 p.m. EDT today. 

So what

Verzenio is a CDK4 & 6 inhibitor, a type of drug that targets enzymes called CDK4 and CDK6. This medicine is already approved for the treatment of metastatic breast cancer and advanced breast cancer. Verzenio is currently being investigated as a potential treatment for early breast cancer in patients who are "at a high risk of recurrence." Interim analysis of a phase 3 clinical trial for the drug revealed that Verzenio, in combination with standard adjuvant therapy, achieved the primary endpoint of invasive disease-free survival, "significantly decreasing the risk of breast cancer recurrence or death" when compared to standard endocrine therapy alone.

Man on a ladder drawing an upward pointing graph on a board.

Image source: Getty Images.

Eli Lilly said that despite tremendous advances in the treatment of breast cancer, about 30% of those diagnosed with some forms of early breast cancer are at risk of cancer recurrence. In other words, there is a need in this particular market, and based on the interim analysis of this study, Verzenio might just be the answer. Breast cancer is the most common cancer in the world among women, which means that this could turn out to be an exciting opportunity for Eli Lilly. The pharma giant plans on sharing data from this study with regulatory authorities.

Now what

Eli Lilly has been making quite a lot of noise of late. The company has started three separate clinical trials for investigational COVID-19 treatments since the beginning of the month. Even before today's good news, Eli Lilly's stock was performing extremely well, especially when compared to the broader market. As of this writing, the company's shares are up by 23.98%. 

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Eli Lilly and Company Stock Quote
Eli Lilly and Company
$332.95 (0.35%) $1.17

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/06/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.