Here’s Why Eli Lilly & Co. Stock Gapped Lower

October 27, 2020, By fierce,

Eli Lilly & Co. (LLY) just plummeted to $134 and could be headed to $130 near-term.  All on news it ended a clinical trial of its antibody drug in hospitalized COVID patients after federal researchers said it produced no marked improvement.

“The study of the monoclonal antibody called bamlanivimab was initially paused by the company on Oct. 13 out of “an abundance of caution,” because of a potential safety concern. For this particular study the therapy was being used in combination with remdesivir, an antiviral with emergency use authorization for the virus,” according to NPR.

However, the decision does not put an end to Eli Lilly’s investment in its therapy.  The company said it remains “confident … that bamlanivimab monotherapy may prevent progression of disease for those earlier in the course of COVID-19.”

 

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