Eli Lilly and Co. said Wednesday it is ending studies of an experimental schizophrenia drug based on negative clinical trial results.
Lilly said an analysis showed a late-stage study of pomaglumetad methionil indicated the drug was unlikely to succeed, and it said a mid-stage trial had failed. In July, the company said a previous late-stage trial also failed.
The company will take a third-quarter charge of about 2 cents per share after taxes as a result of its decision.
Lilly hoped the studies would show pomaglumetad methionil was an effective antipsychotic treatment that lacked side effects of current treatments, which can cause weight gain. However, in July, Lilly said the drug did not work better than a placebo in one late-stage trial. The mid-stage trial tested pomaglumetad methionil in combination with other antipsychotic drugs.
Eli Lilly lost patent protection on its antipsychotic Zyprexa last fall. Zyprexa was its all-time best-selling drug, with annual revenue of $5 billion per year.
Shares of Lilly slipped from their session high of $44.98 but maintained a gain of 15 cents, trading at $44.87, in midday trading.