By Peter Loftus

Researchers will provide clues this week about whether Eli Lilly & Co.'s risky bet on an experimental drug for Alzheimer's disease ultimately pays off-for patients and for Lilly's bottom line.

Scientists are scheduled to present results from a clinical trial of the drug, solanezumab, at the Alzheimer's Association International Conference in Washington. The outcomes will help signal whether Lilly's drug can overcome earlier, negative studies and become the first marketed treatment to slow the worsening of the underlying disease. Current treatments for Alzheimer's can alleviate symptoms but don't slow underlying disease progression.

The dementia-causing brain disorder afflicts an estimated five million Americans, but has been a tough disease for the drug industry to crack because scientists don't fully understand what causes it. Companies have scrapped many experimental drugs that initially looked promising but failed to significantly slow deterioration of memory and other cognitive and daily-living skills of Alzheimer's patients in clinical trials.

Despite the setbacks, the industry continues to hunt for better treatments because of the limitations of current options. And a huge market opportunity awaits drugs that can slow or halt disease progression. Jefferies & Co. analyst Jeffrey Holford estimates the Lilly drug could generate peak annual sales of more than $3 billion world-wide if it is approved for marketing by regulators.

Anticipation of the Lilly Alzheimer's data is a big reason why Lilly shares have risen 26% year-to-date and recently hit a decade high. Positive results would bolster the outlook for the Indianapolis company's sales and earnings as it tries to move past patent expirations for older blockbusters.

A leading theory in Alzheimer's research is that the buildup of a sticky protein known as beta amyloid in the brain contributes to the disease. Lilly's solanezumab is designed to bind to amyloid and clear it from the brain. It is an antibody that is infused intravenously.

But Lilly's effort is risky because solanezumab-like most other amyloid-targeting drugs-had mostly negative results in earlier studies. In two large clinical trials reported in 2012, the drug failed to significantly slow the decline of cognition and functional abilities among the overall population of patients with mild to moderate Alzheimer's, compared with a placebo.

Lilly scientists, however, saw a ray of hope because the drug appeared to slow cognitive decline in a subgroup: patients with a mild form of the disease. Seizing on that signal, Lilly decided to continue developing the drug in mild Alzheimer's patients despite the high costs.

Lilly hasn't disclosed total costs of developing the drug, but Eric Siemers, a lead Lilly Alzheimer's researcher, said large studies like the ones Lilly has conducted typically cost "well over $100 million."

The company started a new clinical study in 2013, targeting enrollment of about 2,100 patients with mild Alzheimer's and due to be completed by the end of 2016. This ongoing study compares solanezumab with a placebo, and its outcome will determine whether Lilly submits the drug for marketing approval in the U.S. and elsewhere.

The results due out this week aren't from that new study, but from an extension of the two studies that were reported in 2012. Lilly continued to provide the drug to some patients who received it in the original studies, and allowed patients who originally received a placebo in those studies to switch over to solanezumab.

On Wednesday, researchers will present data on mild Alzheimer's patients from those extension studies. They will compare outcomes of patients who have been taking solanezumab since the start of the original studies, with those who switched over after taking placebo. On average, the placebo patients started taking solanezumab about 18 months after the earlier patients.

In theory, if solanezumab is slowing the loss of brain cells as Lilly hopes, the patients who started therapy later shouldn't be able to "catch up" to the patients who started earlier, in cognition or function. If there is no catch-up, that would be a sign the Lilly drug is changing the underlying pathology of the disease.

But if there is no significant difference in patient outcomes between these groups, it may be a sign that the drug isn't having the hoped-for effect on the underlying disease, and instead merely easing symptoms.

Other drug companies have also focused their amyloid-targeting drugs on early-stage Alzheimer's patients, and will be closely watching the Lilly results.

Write to Peter Loftus at peter.loftus@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Eli Lilly (NYSE:LLY)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Eli Lilly Charts.
Eli Lilly (NYSE:LLY)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Eli Lilly Charts.