The logo of Lilly is seen on a wall of the Lilly France company unit, part of the Eli Lilly and Co drugmaker group, in Fegersheim near Strasbourg, France, February 1, 2018. REUTERS/Vincent Kessler
(Reuters) – Eli Lilly and Co said its cancer treatment Lartruvo failed to meet the main goal in a late-stage trial and it expects to take a charge in the first quarter of 2019, sending its shares down more than 2 percent in early trade.
The treatment was being tested in patients with advanced or metastatic soft tissue sarcoma.
The company said it expects to take a first-quarter charge, related to Lartruvo, in the range of $ 70 million to $ 90 million pre-tax, or about 10 cents per share after tax.
Lilly also said it expects the trial failure to have an impact of about 17 cents per share on its full-year 2019 earnings forecast.
Lilly said the study did not confirm the clinical benefit of Lartruvo, used in combination with the standard-of-care chemotherapy doxorubicin, when compared to doxorubicin alone.
Lartruvo was granted accelerated approval on mid-stage trial data by the U.S. Food and Drug Administration in 2016, with continued approval remaining contingent on the results of a late-stage trial.
The company said it is working with regulators to determine the appropriate next steps for Lartruvo.
Reporting by Saumya Sibi Joseph in Bengaluru; Editing by Shailesh Kuber