What Eli Lilly Gets With CoLucid Acquisition

Health and Healthcare

Published: January 18, 2017 7:40 am

Last Updated: January 12, 2020 3:47 pm

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.

It’s Your Money, Your Future—Own It (sponsor)

Retirement can be daunting, but it doesn’t need to be.

Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!

Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.