Shares of Eli Lilly & Co. LLY, +3.54% were down 0.9% in premarket trading on Friday after the company said it decided to scrap further development of Olumiant as a possible lupus treatment, based on results from two Phase 3 clinical trials, one of which failed. The drug, which was developed with Incyte Corp. INCY, +3.69%, is also being tested as an atopic dermatitis treatment; however, Lilly said it does not have “alignment” with the Food and Drug Administration on the patient populations for the indication it is seeking. This could result in a complete response letter, the company said. Olumiant first received FDA approval as a rheumatoid arthritis treatment in 2018. This is the second announcement on Friday from a publicly traded drugmaker saying it is not aligned with the FDA on the drug approval process. Lilly’s stock is up 12.6% over the past year, while the S&P 500 SPX, +2.43% has gained 15.3%.
