Aug 29 Eli Lilly and Co said it would
stop developing an experimental schizophrenia drug after a
recent analysis showed that a late-stage trial on the drug was
likely to fail.
An independent futility analysis concluded that the second
late-stage study on the drug was unlikely to meet the main goal
of the trial, the company said .
The decision to stop development of the drug was not based
on any safety concerns. It is expected to result in a
third-quarter charge to R&D expense between $25 million and $30
million, or about 2 cents per share.
However, the company said its previously issued 2012 outlook
will remain unchanged.
Another mid-stage trial testing the drug -- pomaglumetad
methionil, or mGlu2/3 -- as an adjunctive treatment with
atypical antipsychotics, also failed to meet the main study
Lilly will work with study investigators to ensure an
appropriate transition of study participants to continuing
clinical care outside of the trials.
The company, which raised its 2012 net profit forecast for
the second time in early August, has faced two drug-related
setback since then.
On Aug. 24, Lilly said while its Alzheimer's drug showed
signs of slowing mental decline in patients with a mild form of
the disease, it failed to meet the trial goals.
The company said last Sunday that its Effient heart drug
failed to beat the older product Plavix in a head-to-head
Lilly shares were down 0.5 percent at $44.50 in premarket
trading. They closed at $44.71 on the New York Stock Exchange on