Eli Lilly slips after UK declines to cover Alzheimer’s drug
Eli Lilly fell about 3% on Friday after the United Kingdom’s national health provider said it wouldn’t cover the company’s new Alzheimer’s treatment.
The benefits of the injection are too small to justify the cost, the UK’s National Institute for Health and Care Excellence said on Thursday. The drug, Kisunla, is the first to have shown it can slow the progression of Alzheimer’s, but is expensive and comes with safety risks.
The market for the blockbuster drug may be smaller than initially expected. While Medicaid in the US does cover monthly injections, the European Union in May declined to approve the drug over risks of brain swelling.
Analysts polled by FactSet expect the drug to generate $153.3 million in revenue for Lilly this year. That’s down from the $173.8 million consensus in March.
The market for the blockbuster drug may be smaller than initially expected. While Medicaid in the US does cover monthly injections, the European Union in May declined to approve the drug over risks of brain swelling.
Analysts polled by FactSet expect the drug to generate $153.3 million in revenue for Lilly this year. That’s down from the $173.8 million consensus in March.
