Eli Lilly and Company
(
LLY
) and partner Boehringer Ingelheim recently presented positive data
on their type II diabetes drug, Tradjenta (linagliptin). The
companies presented phase III data which showed that a significant
reduction in hemoglobin A1c (HbA1c) levels were achieved in black
or African American patients receiving Tradjenta (5mg, once-daily)
compared to patients on placebo.
Patients in the Tradjenta arm achieved a reduction of 0.88% in
HbA1c level compared to a reduction of 0.24% in the placebo arm at
24 weeks.
These data support the efficacy and safety of Tradjenta in the
African American adult type II diabetes population and provides
them with an additional treatment option.
Tradjenta is approved as an adjunct to diet and exercise for the
improvement of glycemic control in adults with type II diabetes.
Eli Lilly and Boehringer Ingelheim presented these results at the
American Association of Clinical Endocrinologists (AACE) 21st
annual Scientific and Clinical Congress.
Eli Lilly and Boehringer's strategic alliance, signed in January
2011, is focused on bringing new diabetes treatments to market.
Neutral on Eli Lilly
We currently have a Neutral recommendation on Eli Lilly, which
carries a Zacks #3 Rank (short-term 'Hold' rating). The company is
facing a challenging period with Zyprexa having losing patent
protection in late 2011. With generic players like
Teva
(
TEVA
) and
Dr. Reddy's
(
RDY
) launching their generic version of the product, we expect rapid
erosion in Zyprexa sales.
We expect the top and bottom lines to remain under pressure as
the contraction in Zyprexa sales more than offsets growth in
Cymbalta, diabetes and new product sales. The generic threat will
continue to pose challenges for Eli Lilly with Cymbalta slated to
lose patent protection in 2013 and Evista in 2014. On the flip
side, the Animal Health business and emerging markets should
provide some downside support. We are also pleased to see Eli Lilly
pursuing small acquisitions and in-licensing deals to boost its
pipeline.
LILLY ELI & CO (LLY): Free Stock Analysis
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