By Lewis Krauskopf NEW YORK (Reuters) – Eli Lilly & Co’s massive setback for its experimental Alzheimer’s disease treatment on Wednesday sent investors scrambling to re-evaluate shares of the U.S. drugmaker and those of companies making competing therapies, including biotech stalwart Biogen Inc. Lilly shares tumbled 10.5 percent, and fell to their lowest point in two years during the session, after the company said its drug failed to slow loss of cognitive ability in patients with mild symptoms. Biogen shares were down 4 percent, but had reduced their initial losses by more than half from premarket trading as investors assessed the damage to the prospects of the company’s drug that works in a similar way to Lilly’s. The results for Lilly’s solanezumab were a highly anticipated event on Wall Street, with some analysts saying the company’s shares could have leapt 20 percent or more had the clinical trial succeeded.
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Alzheimer’s setback prompts rethink of Lilly, Biogen stock outlooks
