Back to top

Image: Bigstock

Lilly, Merck Expand Tie-Up to Study Lartruvo-Keytruda Combo

Read MoreHide Full Article

Eli Lilly and Company (LLY - Free Report) and Merck & Co., Inc. (MRK - Free Report) expanded their existing immuno-oncology partnership to include a new study that will evaluate Lilly’s Lartruvo in combination with Merck’s Keytruda in patients with previously treated advanced or metastatic soft tissue sarcoma (STS).

Lilly’s one-month share price movement shows that the stock has outperformed the Zacks classified Large Cap Pharma industry. Specifically, the stock gained 11.3%, while the industry increased 2.8%. However, in the past one month, Merck’s share price has underperformed the broader industry. Specifically, the stock lost 0.1%, while the industry increased 2.8%.



While financial details of the collaboration were kept under wraps, it is was revealed that Lilly will be the sponsor of the phase I study with enrollment expected to start in mid 2017.

We remind investors that Lartruvo, in combination with doxorubicin, gained accelerated approval in the U.S. in Oct 2016 for the treatment of adults with STS with a histologic subtype, for which an anthracycline-containing regimen is appropriate and which is not amenable to curative treatment with radiotherapy or surgery.

Moreover, Lartruvo, in combination with doxorubicin, gained conditional marketing authorization from the European Medicines Agency for the treatment of adults with advanced STS not amenable to curative treatment with surgery or radiotherapy and who have not been previously treated with doxorubicin.

We note that Lartruvo is the first FDA-approved front-line treatment to receive regulatory approval for STS in four decades.

According to the American Cancer Society, an estimated 12,000 new cases of STS were diagnosed in 2015, resulting in nearly 5000 deaths in the U.S. alone.

Other products being evaluated by Lilly and Merck include Alimta (plus carboplatin) and Keytruda in first-line non-squamous non-small cell lung cancer (NSCLC), including a phase III study that is currently enrolling patients; the combination of Cyramza (ramucirumab) with Keytruda in NSCLC, gastric cancer and bladder cancer in a phase I study; the combination of (Portrazza) necitumumab with Keytruda in NSCLC in a phase I study; and the combination of abemaciclib with Keytruda in a phase I study.

Based on phase I results, the companies may decide to advance the combination into phase II development for patients who have been diagnosed with either metastatic breast cancer or NSCLC.

Zacks Rank & Key Picks

Both Lilly and Merck currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the health care sector include Kite Pharma, Inc. and Enzo Biochem, Inc. (ENZ - Free Report) . Both the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Kite Pharma’s loss estimates narrowed from $5.60 to $5.48 for 2016 and from $6.86 to $6.85 for 2017 over the last 60 days. The company posted a positive surprise in two of the four trailing quarters with an average beat of 7.89%. Its share price increased 8.6% in the past one month.

Enzo Biochem’s loss estimates narrowed from 17 cents to 16 cents for 2016 over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 22.50%.

Zacks’ Best Private Investment Ideas

In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?

Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Merck & Co., Inc. (MRK) - free report >>

Eli Lilly and Company (LLY) - free report >>

Enzo Biochem, Inc. (ENZ) - free report >>

Published in