Lilly Falls After Rheumatoid Arthritis Drug Rejected by FDA
- Biggest intraday drop since Nov. 23; partner Incyte also falls
- Drug could be delayed until 2019 or later, analysts say
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Shares of Eli Lilly & Co. and Incyte Corp. dropped after their experimental rheumatoid arthritis pill was rejected by U.S. regulators, prompting concerns that the potential blockbuster product will be delayed for years.
More information is needed on baricitinib’s safety and effectiveness before it is widely used by Americans, the U.S. Food and Drug Administration said Friday, when the markets were closed. Lilly, based in Indianapolis, fell 4.4 percent to $82.07 at 10:40 a.m. on Monday, while Incyte slumped 12 percent to $124.64.