Please ensure Javascript is enabled for purposes of website accessibility

Why Eli Lilly Stock Soared Today

By Keith Speights - Jun 7, 2021 at 3:51PM

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

Biogen's stunning win of FDA approval for aducanumab spurred investors' excitement about Lilly's prospects for its Alzheimer's disease candidate.

What happened

Shares of Eli Lilly (LLY 2.52%) were soaring 10.7% as of 3:37 p.m. EDT on Monday. The big jump came after the Food and Drug Administration (FDA) approved Biogen's (BIIB 1.39%) aducanumab (Aduhelm) in treating Alzheimer's disease.

So what

Why was Biogen's good news such a strong catalyst for Lilly? The big pharma stock rose because investors are hoping that the FDA approval of aducanumab improves the likelihood that Lilly will also win approval for its Alzheimer's disease drug candidate donanemab.

A document with "Alzheimer's Disease" printed at the top, X-ray images, pills, a pen, and syringes.

Image source: Getty Images.

In March, Lilly reported promising results from a phase 2 study evaluating donanemab in treating Alzheimer's. The experimental drug showed a significant slowing of cognitive decline in patients with early Alzheimer's compared to placebo.

Now what

Lilly chief scientific officer Dan Skovronsky stated in April that the drugmaker wouldn't seek an accelerated approval path for donanemab. The company is evaluating the experimental drug in a phase 3 study that will take around a year to fully enroll patients. With Biogen's stunning FDA victory for aducanumab, however, investors will want to watch closely to see if Lilly rethinks its decision and tries for an early approval of donanemab after all. 

Keith Speights has no position in any of the stocks mentioned. The Motley Fool recommends Biogen. 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
$307.75 (2.52%) $7.56
Biogen Inc. Stock Quote
Biogen Inc.
$221.26 (1.39%) $3.04

*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 08/12/2022.

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.