Eli Lilly and Company (NYSE:LLY): Closing price $53.74
Lilly will cease the development of its experimental rheumatoid arthritis drug tabalumab, almost two months after data from a late-stage trial indicated that the drug was unlikely to prove effective. The trial was one of the three late-stage trials planned for the drug, testing tabalumab in patients suffering from moderate-to-severe rheumatoid arthritis who had an inadequate response to initial treatment. The firm then conducted another analysis before stopping all ongoing mid- and late-stage trials of the drug. This decision should result in a first-quarter charge of around $50 million, but the company’s financial forecast for this year remained unchanged.