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Lilly Reports Mixed Results from Late-Stage Cyramza Study

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Eli Lilly and Company (LLY - Free Report) announced top-line data from the phase III study – RAINFALL – evaluating Cyramza (ramucirumab) as first-line treatment for patients with advanced gastric cancer. The study met its primary endpoint of progression free survival ("PFS") but failed to improve overall survival ("OS"). The results will be presented at a future medical meeting.

The company has also announced that it will not seek regulatory approval in the first-line setting based on the data from this study.

Cyramza is presently approved as a single agent or in combination with chemotherapy drug, paclitaxel, for treating advanced or metastatic gastric (stomach) or gastroesophageal junction (“GEJ”) adenocarcinoma in patients whose disease has progressed after prior therapies. The drug is also approved for treating metastatic non-small cell lung cancer and for metastatic colorectal cancer (with tradename Folfiri).

Shares of Lilly have gained 6.9% in the past six months, outperforming the industry’s rise of 4.5% in that period.

The RAINFALL study evaluated Cyramza in combination with cisplatin and capecitabine or 5-fluorouracil as first-line treatment for HER2-negative metastatic gastric or GEJ adenocarcinoma versus a placebo

The company was hopeful that the positive PFS would lead to an OS benefit. Treating advanced gastric cancer is a challenge, which is further underscored by the fact that no major advances over chemotherapies have been achieved for treating metastatic gastric cancer.

Moreover, initial data from another phase III study on Cyramza presented at ESMO 2017 Congress showed that the drug met PFS endpoint in patients with advanced urothelial carcinoma.

Per the press release, gastric cancer is the fifth most common form of cancer in the world. The disease is expected to affect 28,000 new patients and cause 11,000 deaths in the United Sates in 2017 alone.

Zacks Rank & Stocks to Consider

Lilly carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the pharma sector include Johnson & Johnson (JNJ - Free Report) , ACADIA Pharmaceuticals Inc. (ACAD - Free Report) and Corcept Therapeutics Inc. (CORT - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

J&J’s earnings estimates increased from $7.19 to $7.28 for 2017 and from $7.75 to $7.85 over the last 60 days. The company delivered a positive earnings surprise in all the trailing four quarters with an average beat of 3.12%. The company’s shares have returned 22% so far this year.

ACADIA’s loss estimates narrowed from $2.44 to $2.41 for 2017 and from $1.67 to $1.59 over the last 30 days. The company came up with a positive earnings surprise in three of the trailing four quarters with an average beat of 9.95%. The company’s shares have returned 5.7% so far this year.

Corcept’s earnings per share estimates have increased from 78 cents to 88 cents for 2018 over the last 60 days. The company delivered a positive earnings surprise in two of the trailing four quarters with an average beat of 14.32%. The company’s stock is up 131.3% so far this year.

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