Drugmaker Eli Lilly (NYSE:LLY) drew cheers from shareholders last year after releasing disappointing phase 3 trial data for its experimental Alzheimer's disease drug solanezumab.

Wait -- disappointing?

You're probably wondering if you read that correctly, but it's true. Despite failing to meet its primary endpoints, the drug showed some promise and Lilly is proceeding with another phase 3 trial this year to examine the treatment's efficacy in patients with mild Alzheimer's disease. One of Lilly's competitors in this space, pharma giant Merck (NYSE:MRK), is working on a phase 2/3 trial for its own experimental drug MK-8931. In this video, our health care analyst discusses this therapeutic area and why this could be the most important drug in Merck's pipeline today.

Max Macaluso, Ph.D. has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.