Eli Lilly and Co (NYSE:LLY) shares were plummeting as the company unveiled the latest on its Alzheimer’s drug.
The medication was designed to slow down loss of cognitive ability on patients of afflicted with the disease who are still on the early stages of it. The results were unveiled in the company’s Expedition 3 study.
Solanezumab was the first drug approved by health officials to slow down the progression of the disease. By 2050, the Alzheimer’s Association predicts that as many as 28 million of Americans will be affected by it.
The company said that it would take a $150 million charge in its fourth quarter due to the fact that the medication failed to reveal the results that were expected. On Dec. 15, Lilly will release new financial guidance for 2016, as well as forecasts for 2017.
The company has also been working on several other medications, including drugs for diabetes and other conditions that will help it to recover.
Solanezumab was also designed to help patients who suffer from mild dementia, but the failed results have pushed the company to not seek approval of the medication. It is also being used to treat Alzheimer’s patients with brain plaques.
If the medication is approved, the company could make up to $10 billion in annual sales. The drug binds the bloodstream to a beta amyloid, a protein that is believed to cause toxic brain plaques.
LLY shares fell 10.5% Wednesday.
