Health and Healthcare
What Eli Lilly Gets With CoLucid Acquisition
Published:
Last Updated:
Eli Lilly and Co. (NYSE: LLY) has announced it has reached an agreement to acquire CoLucid Pharmaceuticals Inc. (NASDAQ: CLCD) in an all-cash transaction for $46.50 per share, or about $960 million. This not only will enhance Eli Lilly’s existing portfolio in pain management for migraine, but it also adds a potential near-term launch to its late-stage pipeline.
CoLucid Pharmaceuticals is a biopharmaceutical company developing an oral 5-HT1F agonist (lasmiditan) for the acute treatment of migraine. It has completed the first of two pivotal Phase 3 trials, and a data read-out for the second is expected in the second half of 2017. If this trial is positive, submission of lasmiditan for U.S. regulatory approval could occur in 2018.
Lasmiditan was originally discovered at Lilly and was out-licensed to CoLucid in 2005. CoLucid also is developing IV lasmiditan, which is in Phase 2 clinical trial for the acute treatment of headache pain associated with migraine in adults in emergency room and other urgent care settings.
Eli Lilly is a top pick at both Merrill Lynch and JPMorgan for its big upside potential. Argus just reiterated its Buy rating on the shares yesterday, citing the company’s strong product pipeline. The stock also has been identified as ideal for long-term retirement accounts looking to generate solid total return.
Eli Lilly is a global health care company with numerous core products in a number of primary-care pharmaceutical markets. The company generates revenues from its pharmaceutical product and animal health segments.
The product portfolio includes Zyprexa (for schizophrenia and bipolar disorder), Gemzar (pancreatic cancer), Evista (osteoporosis), Cymbalta (depression), Cialis (erectile dysfunction), Strattera (attention deficit hyperactivity disorder), Erbitux (cancer) and Alimta (chemotherapy). Eli Lilly also has a strong presence in the diabetes market.
Top analysts on Wall Street remain very focused on the company’s outstanding late-stage product pipeline, which they view as very undervalued.
Eli Lilly shareholders receive a 2.7% dividend. The consensus target is $85.19, but shares closed Tuesday at $76.85, in a 52-week range of $64.18 to $83.79.
CoLucid shares jumped more than 32% in premarket trading to $46.30. The 52-week trading range was $4.57 to $40.80.
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
