Eli Lilly And Co (NYSE:LLY) To Start Testing Their Pain Drug Tanezumab
Eli Lilly and Co (NYSE:LLY) will partner with Pfizer Inc. (NYSE:PFE) again to conduct further late-stage studies for ‘tanezumab,’ the pain drug. The announcement came after the U.S. Food and Drug Administration had revised its earlier partial hold on the tests.
The resumption of the tests will imply Pfizer Inc. can now lay claim to further upfront payments. Lilly is expected to pay Pfizer Inc $200 million as part of its earlier agreements, as per media reports on Monday.
Tests on Hold
The Food and Drug Authority of the U.S. had extended a partial hold on testing for tanezumab as well as other ‘anti-nerve growth factor antibodies’ since December 2012.
The withdrawal of the partial hold will now see the resumption of the tests, allowing Eli Lilly and Co to finally conclude its Pfizer Inc. deal for tanezumab.
Analysts consensus ‘Buy’ rating Eli Lilly and Co
Eli Lilly and Co (NYSE:LLY) has received analysts cover. The company’s price target was set by analysts Cowen and Company at $85.00 on Monday, following the release of its research report. Bernstein reiterated its ‘Buy’ rating, while Leerink Swann raised the price target to $77.00 from $75.00 per share. Leerink Swann holds an ‘Outperform’ rating for this stock.
Eli Lilly and Co., which works with pharmaceutical product sales, manufacturing, development and discovery, had concluded the Pfizer deal for tanezumab. Analysts at Cowen believe that the drug has a potential annual sales figure of $100 million by 2020.
Eli Lilly and Co.’s coveted tanezumab drug was halted by the Food and Drug Administration, given the complications occurring in the research phase to the nervous system. The pain treatment by tanezumab involves the blocking of the protein regarded as a nerve growth factor, resulting in nervous system complications.
Eli Lilly and Co (NYSE:LLY) shares, on Monday, posted gains of 1.32% following the announcement of resumption of late-stage studies for tanezumab.
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