Lilly stays confident in possible COVID drug after setback

The drugmaker said its net income fell 4% to $1.21 billion, partly due to $125 in research and development costs for developing potential COVID-19 treatments. Global revenue climbed 5% to $5.74 billion, and adjusted earnings totalled $1.54 per share.

Eli Lilly continues to back a potential COVID-19 treatment despite research showing that it may not work on hospitalised patients. The drugmaker on Tuesday said it remains confident that its drug may stop COVID from developing in other patients. Researchers are still studying the drug in mild to moderately ill patients, to try to prevent hospitalisation and severe illness.

US government officials on Monday said they put an early end to a study testing the antibody drug in hospitalised patients because it doesn't seem to be helping them. Antibodies are proteins the body makes when an infection occurs; they attach to a virus and help it be eliminated.

Lilly shares tumbled in early-morning trading on Tuesday after the company also laid out disappointing third-quarter results. The drugmaker said its net income fell 4% to $1.21 billion, partly due to $125 in research and development costs for developing potential COVID-19 treatments.

Global revenue climbed 5% to $5.74 billion, and adjusted earnings totalled $1.54 per share. Analysts expected, on average, earnings of $1.71 per share on $5.87 billion in revenue, according to FactSet.

Shares of Indianapolis-based Eli Lilly and Co fell 4% to $136.01 before markets opened..