Eli Lilly stock and Biogen stock diverged Thursday after Lilly said a decade-long study of an Alzheimer's treatment definitively failed.
The company tested its drug, solanezumab, in asymptomatic patients whose brains had begun to accumulate amyloid beta, a plaque associated with Alzheimer's disease. Patients received treatment for 4.5 years and then were followed for the remaining 5.5 years. Solanezumab didn't clear amyloid beta nor did it halt the accumulation of the plaque.
Investors in Eli Lilly stock didn't expect success here. Solanezumab has already had high-profile failures in 2012 and 2016. Instead, they're focused on a new wave of Alzheimer's treatments that do a better job of removing the plaque, including drugs from Lilly and Biogen.
"The (study) concludes our clinical development of solanezumab and indicates that targeting soluble amyloid beta through this mechanism is not effective in this population," John Sims said in a written statement. Sims headed up solanezumab development for Lilly.
On the stock market today, Eli Lilly stock rose 1.4% and closed at 316.85. Biogen stock fell 1.5% to 258.99.
Eli Lilly Stock: Newer Alzheimer's Treatments
Lilly used the solanezumab study results to highlight the differences between its older and newer approaches to Alzheimer's treatment.
Solanezumab only removes soluble amyloid beta. Its newer drugs, donanemab and remternetug, target the stickier deposited plaque. Both are in final-phase testing and have shown their ability to clear amyloid beta in treated patients. The donanemab study could have initial results in the next few months. Positive news could help Eli Lilly stock rebound from a recent downtrend.
"While this study (in solanezumab) was negative, the unique data generated have increased our understanding of preclinical Alzheimer's disease and will advance the next generation of Alzheimer's disease prevention studies," Sims said.
Lilly doesn't expect to have initial results from its remternetug study until next year.
Biogen Stock: Full Leqembi Approval?
Biogen already has two approved Alzheimer's treatments. Both gained accelerated approval in the U.S. based on their ability to remove beta amyloid, sending Biogen stock sky-high.
But the Centers for Medicare and Medicaid Services declined to reimburse for the first Alzheimer's treatment, Aduhelm, because Biogen hasn't demonstrated the drug's benefit on cognition.
Now, Biogen is seeking a traditional approval for the second drug, Leqembi. After 18 months of treatment with Leqembi, patients showed a 27% slower decline in cognition than placebo recipients. The Food and Drug Administration will decide on Leqembi in July.
A full approval could help Biogen stock retake its 50-day moving average. Shares have been below that level since last month, according to MarketSmith.com. Eli Lilly stock also is below its 200-day line.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
