The U.S. Food and Drug Administration (FDA) has granted “Breakthrough Therapy” designation to Eli Lilly’s (LLY) new lung cancer drug.
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Specifically, the FDA gave the designation to Eli Lilly’s Olomorasib medication when taken in combination with cancer drug Keytruda for the treatment of certain lung cancers. The Breakthrough Therapy designation expedites development and review of new drugs that show substantial improvement over existing therapies and treatments.
“The Breakthrough Therapy designation recognizes the potential for Olomorasib to be a meaningful treatment advance,” said David Hyman, Eli Lilly’s chief medical officer, in a news release. The FDA’s decision was based on data from a phase one/two clinical trial. Eli Lilly plans to present updated data related to the lung cancer drug at the World Conference on Lung Cancer in Spain from Sept. 6-9.
Cancer Treatments
While Eli Lilly is mostly known for its weight-loss and diabetes drugs, the company is also a major player when it comes to cancer treatments. Many analysts cite the company’s role and potential growth in cancer treatments and therapies when evaluating LLY stock.
The new lung cancer drug is currently being studied in multiple clinical trials, both on its own and in combination with other treatment methods that include immunotherapy and chemotherapy. The FDA’s “Breakthrough Therapy” designation should help speed along those trials.
Is LLY Stock a Buy?
The stock of Eli Lilly has a consensus Strong Buy rating among 21 Wall Street analysts. That rating is based on 16 Buy and five Hold recommendations issued in the last three months. The average LLY price target of $904.76 implies 24.41% upside from current levels.
