We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Lilly to Acquire Private Biotech for Boosting Pain Portfolio
Read MoreHide Full Article
Eli Lilly and Company (LLY - Free Report) announced that it has entered into an agreement to acquire Cambridge, MA-based privately held biotech Disarm Therapeutics for an upfront payment of $135 million. The company is looking to expand its pain and neurological diseases portfolio by adding Disarm's promising preclinical SARM1 programs, which are being developed for axonal degeneration.
Lilly plans to advance the SARM1 inhibitors in the pipeline and develop the same into potential medicines for peripheral neuropathy and neurological diseases, such as amyotrophic lateral sclerosis (ALS) and multiple sclerosis (MS).
Per the press release, axonal degeneration is a pathology revolving around a broad range of neurological diseases, known to cause severe sensory, motor and cognitive symptoms. Disarm's novel way of treating axonal degeneration carries immense prospects in addressing a hugely unmet area of neurological diseases.
Per the agreement, along with an upfront payment, Disarm’s equityholders may also be eligible to receive up to $1.225 billion as future milestone fees, if Lilly is able to successfully develop and commercialize potential new medicines.
Shares of Lilly have rallied 11.7% so far this year against the industry’s decrease of 0.8%.
We note that Lilly has been working on building its pipeline and has a wide range of compounds in different stages of development. The company is actively pursuing in-licensing deals and acquisitions to drive near-to-medium term growth. Lilly’s key areas of focus are diabetes, oncology, immunology and neurodegeneration.
A notable pipeline candidate in Lily’s portfolio for the pain indication is tanezumab. It is being developed in a late-stage study for osteoarthritis pain and is currently under review in the United States and Europe for the given indication. It is also being evaluated in a phase III study for treating cancer pain.
Lilly is jointly developing tanezumab in collaboration with Pfizer (PFE - Free Report) .
Vertex’s earnings estimates have been revised 1.5% upward for 2020 and 2.3% for 2021 over the past 60 days.
IntraCellular’s loss per share estimates have narrowed 4.5% for 2020 and 13.3% for 2021 over the past 60 days.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Image: Bigstock
Lilly to Acquire Private Biotech for Boosting Pain Portfolio
Eli Lilly and Company (LLY - Free Report) announced that it has entered into an agreement to acquire Cambridge, MA-based privately held biotech Disarm Therapeutics for an upfront payment of $135 million. The company is looking to expand its pain and neurological diseases portfolio by adding Disarm's promising preclinical SARM1 programs, which are being developed for axonal degeneration.
Lilly plans to advance the SARM1 inhibitors in the pipeline and develop the same into potential medicines for peripheral neuropathy and neurological diseases, such as amyotrophic lateral sclerosis (ALS) and multiple sclerosis (MS).
Per the press release, axonal degeneration is a pathology revolving around a broad range of neurological diseases, known to cause severe sensory, motor and cognitive symptoms. Disarm's novel way of treating axonal degeneration carries immense prospects in addressing a hugely unmet area of neurological diseases.
Per the agreement, along with an upfront payment, Disarm’s equityholders may also be eligible to receive up to $1.225 billion as future milestone fees, if Lilly is able to successfully develop and commercialize potential new medicines.
Shares of Lilly have rallied 11.7% so far this year against the industry’s decrease of 0.8%.
We note that Lilly has been working on building its pipeline and has a wide range of compounds in different stages of development. The company is actively pursuing in-licensing deals and acquisitions to drive near-to-medium term growth. Lilly’s key areas of focus are diabetes, oncology, immunology and neurodegeneration.
A notable pipeline candidate in Lily’s portfolio for the pain indication is tanezumab. It is being developed in a late-stage study for osteoarthritis pain and is currently under review in the United States and Europe for the given indication. It is also being evaluated in a phase III study for treating cancer pain.
Lilly is jointly developing tanezumab in collaboration with Pfizer (PFE - Free Report) .
Zacks Rank & Stocks to Consider
Lilly currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the biotech/drug sector include Vertex Pharmaceuticals Incorporated (VRTX - Free Report) and IntraCellular Therapies Inc. (ITCI - Free Report) , both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Vertex’s earnings estimates have been revised 1.5% upward for 2020 and 2.3% for 2021 over the past 60 days.
IntraCellular’s loss per share estimates have narrowed 4.5% for 2020 and 13.3% for 2021 over the past 60 days.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Download Marijuana Moneymakers FREE >>