It’s over: Eli Lil­ly shares tank af­ter its huge gam­ble on Alzheimer’s drug solanezum­ab ends in fail­ure

Eli Lil­ly CEO John Lech­leit­er

Eli Lil­ly’s mon­u­men­tal ef­fort to prove once and for all that solanezum­ab could work in de­lay­ing Alzheimer’s has end­ed in to­tal fail­ure. The phar­ma gi­ant an­nounced this morn­ing that the drug failed its third Phase III ef­fort at Lil­ly, send­ing its stock in­to a tail­spin.

Back in 2012, in­ves­ti­ga­tors for Lil­ly con­vinced the top ex­ecs at the com­pa­ny that they had seen re­al, tan­gi­ble ben­e­fits for ear­ly-stage pa­tients tak­ing the drug, de­signed to elim­i­nate de­posits of amy­loid be­ta in the brain. The da­ta, they felt, war­rant­ed an­oth­er clin­i­cal odyssey in Phase III, even though that study had failed. And CEO John Lech­leit­er was a stout ad­vo­cate through­out, will­ing to in­vest heav­i­ly in the study. But in the end, the drug of­fered noth­ing but false hope to mil­lions of pa­tients, fail­ing to bend the curve on cog­ni­tive de­clines or the abil­i­ty of pa­tients to func­tion bet­ter.

Lil­ly will take a mod­est $150 mil­lion charge in the fourth quar­ter — just a frac­tion of what it has spent on this drug.

Its shares plunged 14% on the news. And the dam­age ex­tend­ed to oth­er com­pa­nies pur­su­ing the amy­loid be­ta the­o­ry. Bio­gen, which has pro­mot­ed the prospect of ad­u­canum­ab, watched its stock plunge 10% in pre-mar­ket trad­ing. And Ax­o­vant, a com­pa­ny that nabbed a failed Alzheimer’s drug from GSK and put it back in­to the clin­ic, saw its shares drop 18%, even though their drug goes af­ter a com­plete­ly dif­fer­ent tar­get.

The fail­ure here casts a par­tic­u­lar pall over the amy­loid be­ta the­o­ry. The tox­ic pro­tein clus­ters in pa­tients’ brains are con­sid­ered the most like­ly sus­pect for trig­ger­ing the dis­ease, which af­flicts mil­lions. Mer­ck, Bio­gen, Lil­ly and oth­ers all have oth­er pro­grams in the pipeline that look at var­i­ous ways to re­duce the lev­el of amy­loid be­ta in the brain. And those pro­grams will con­tin­ue, along with the de­bate over what tar­gets should be used in fu­ture stud­ies.

Not­ed Leerink’s Sea­mus Fer­nan­dez:

This re­sult will no doubt cast a shad­ow over LLY’s Alzheimer’s Dis­ease (AD) pipeline port­fo­lio, which is heav­i­ly based on the be­ta amy­loid hy­poth­e­sis. Oth­er com­peti­tors’ pro­grams based on this hy­poth­e­sis will prob­a­bly con­tin­ue, but this will like­ly have neg­a­tive read-through on these re­sults in the short term.

The fail­ure at Eli Lil­ly al­so un­der­scores the dis­as­trous record that Alzheimer’s drugs over­all have had in the clin­ic for more than a decade, with a near-uni­ver­sal fail­ure rate. Eli Lil­ly has had one of the longest run­ning R&D ef­forts in Alzheimer’s, with some jaw-drop­ping set­backs along the way. It al­so tried to go af­ter Alzheimer’s with sema­gace­s­tat, on­ly to find that the drug ap­par­ent­ly in­creased the risk of the dis­ease. In­ves­ti­ga­tors and ex­ecs, though, have been steadi­ly lured on by the prospect of mega-block­buster sales, of­ten cru­el­ly tout­ing the po­ten­tial of a ther­a­py, on­ly to ad­mit fail­ure in the end.

“The re­sults of the solanezum­ab EX­PE­DI­TION3 tri­al were not what we had hoped for and we are dis­ap­point­ed for the mil­lions of peo­ple wait­ing for a po­ten­tial dis­ease-mod­i­fy­ing treat­ment for Alzheimer’s dis­ease,” said Lech­leit­er. “We will eval­u­ate the im­pact of these re­sults on the de­vel­op­ment plans for solanezum­ab and our oth­er Alzheimer’s pipeline as­sets.”

2023 Spot­light on the Fu­ture of Drug De­vel­op­ment for Small and Mid-Sized Biotechs

In the context of today’s global economic environment, there is an increasing need to work smarter, faster and leaner across all facets of the life sciences industry.  This is particularly true for small and mid-sized biotech companies, many of which are facing declining valuations and competing for increasingly limited funding to propel their science forward.  It is important to recognize that within this framework, many of these smaller companies already find themselves resource-challenged to design and manage clinical studies themselves because they don’t have large teams or in-house experts in navigating the various aspects of the drug development journey. This can be particularly challenging for the most complex and difficult to treat diseases where no previous pathway exists and patients are urgently awaiting breakthroughs.

Dipal Doshi, Entrada Therapeutics CEO

Ver­tex just found the next big ‘trans­for­ma­tive’ thing for the pipeline — at a biotech just down the street

Back in the summer of 2019, when I was covering Vertex’s executive chairman Jeff Leiden’s plans for the pipeline, I picked up on a distinct focus on myotonic dystrophy Type I, or DM1 — one of what Leiden called “two diseases (with DMD) we’re interested in and we continue to look for those assets.”

Today, Leiden’s successor at the helm of Vertex, CEO Reshma Kewalramani, is plunking down $250 million in cash to go the extra mile on DM1. The lion’s share of that is for the upfront, with a small reserve for equity in a deal that lines Vertex up with a neighbor in Seaport that has been rather quietly going at both of Vertex’s early disease targets with preclinical assets.

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Rami Elghandour, Arcellx CEO

Up­dat­ed: Gilead, Ar­cel­lx team up on an­ti-BC­MA CAR-T as biotech touts a 100% re­sponse rate at #ASH22

Gilead and Kite are plunking down big cash to get into the anti-BCMA CAR-T game.

The pair will shell out $225 million in cash upfront and $100 million in equity to Arcellx, Kite announced Friday morning, to develop the biotech’s lead CAR-T program together. Kite will handle commercialization and co-development with Arcellx, and profits in the US will be split 50-50.

Concurrent with the deal, Arcellx revealed its latest cut of data for the program known as CART-ddBCMA, ahead of a full presentation at this weekend’s ASH conference — a 100% response rate among patients getting the therapy. Investors jumped at the dual announcements, sending Arcellx shares $ACLX up more than 25% in Friday’s morning session.

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Christian Itin, Autolus CEO (UKBIO19)

Au­to­lus tips its hand, bags $220M as CAR-T show­down with Gilead looms

The first batch of pivotal data on Autolus Therapeutics’ CAR-T is in, and execs are ready to plot a path to market.

With an overall remission rate of 70% at the interim analysis featuring 50 patients, the results set the stage for a BLA filing by the end of 2023, said CEO Christian Itin.

Perhaps more importantly — given that Autolus’ drug, obe-cel, is going after an indication that Gilead’s Tecartus is already approved for — the biotech highlighted “encouraging safety data” in the trial, with a low percentage of patients experiencing severe immune responses.

WIB22: Am­ber Salz­man had few op­tions when her son was di­ag­nosed with a rare ge­net­ic dis­ease. So she cre­at­ed a bet­ter one

This profile is part of Endpoints News’ 2022 special report about Women in Biopharma R&D. You can read the full report here.

Amber Salzman’s life changed on a cold, damp day in Paris over tiny plastic cups of lukewarm tea.

She was meeting with Patrick Aubourg, a French neurologist studying adrenoleukodystrophy, or ALD, a rare genetic condition that causes rapid neurological decline in young boys. It’s a sinister disease that often leads to disability or death within just a few years. Salzman’s nephew was diagnosed at just 6 or 7 years old, and died at the age of 12.

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Ahead of ad­comm, FDA rais­es un­cer­tain­ties on ben­e­fit-risk pro­file of Cy­to­ki­net­ic­s' po­ten­tial heart drug

The FDA’s Cardiovascular and Renal Drugs Advisory Committee will meet next Tuesday to discuss whether Cytokinetics’ potential heart drug can safely reduce the risk of cardiovascular death and heart failure in patients with symptomatic chronic heart failure with reduced ejection fraction.

The drug, known as omecamtiv mecarbil and in development for more than 15 years, has seen mixed results, with a first Phase III readout from November 2020 hitting the primary endpoint of reducing the odds of hospitalization or other urgent care for heart failure by 8%. But it also missed a key secondary endpoint analysts had pegged as key to breaking into the market.

Ab­b­Vie slapped with age dis­crim­i­na­tion law­suit, fol­low­ing oth­er phar­mas

Add AbbVie to the list of pharma companies currently facing age discrimination allegations.

Pennsylvania resident Thomas Hesch filed suit against AbbVie on Wednesday, accusing the company of passing him over for promotions in favor of younger candidates.

Despite 30 years of pharma experience, “Hesch has consistently seen younger, less qualified employees promoted over him,” the complaint states.

WIB22: Lead­ing NK cell re­searcher re­flects on roots in Iran, the UK and Texas

This profile is part of Endpoints News’ 2022 special report about Women in Biopharma R&D. You can read the full report here.

In a small but widely-cited 11-person study published in NEJM in 2020, seven patients saw signs of their cancer completely go away after getting a new therapy made from natural killer cells. The study was one of the earliest to provide clinical proof that the experimental treatment method had promise.

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Philip Astley-Sparke, Replimune CEO

Replimune looks to rope in $225M on the back of melanoma da­ta

The Massachusetts-based, oncolytic virus biotech Replimune is feeling bullish now that it has lifted the cover on data for its lead product.

Replimune said Thursday it looks to nab about $225 million from a public offering after giving a snapshot of some initial data from its IGNYTE clinical study earlier this week. The trial is investigating RP1 in combination with Opdivo, for patients with melanoma and who did not have a response when being treated with a PD-1.