Eli Lilly & Co. said it will stop development of evacetrapib, an experimental cholesterol drug, because it wasn't effective enough in clinical trials.
The company will take a charge of as much as $90 million, or 5 cents a share after taxes, in the fourth quarter for research and development costs, according to a statement Monday. The drugmaker will include the expense in an updated forecast when it reports third-quarter results on Oct. 22.
Lilly shares closed Monday down almost 7.8 percent to $79.44.
Lilly has been seeking to rebound from what it has called a low point in sales in 2014, after losing exclusive rights to blockbuster medicines including Cymbalta and Zyprexa. Evacetrapib was projected to reach $632.7 million in sales in 2020, according to the average of seven analysts' estimates compiled by Bloomberg.
Evacetrapib was supposed to raise levels of good cholesterol, or HDL, and reduce cardiac events such as strokes and heart attacks. Lilly had been testing the drug in more than 12,000 patients, according to Monday's statement. The company was measuring whether the drug lengthened the time before patients under treatment had a cardiac event.
Business on 10/13/2015