On Thursday, Bernstein SocGen Group maintained its Outperform rating and JPY9,600.00 price target on Eisai Co (OTC:ESAIY) Ltd. (4523:JP) (OTC: ESALY) stock. This affirmation comes in the wake of a sell-off of Eisai stock on Tuesday, following a positive advisory committee meeting for a competing Alzheimer's drug from Eli Lilly (NYSE:LLY).
The advisory committee meeting, held by the Food and Drug Administration (FDA) on June 10, concluded with a unanimous agreement on the efficacy of Eli Lilly's Alzheimer's drug donanemab across various subgroups. The committee also found that the benefits of the drug's efficacy outweigh the safety risks. The meeting was convened to discuss key aspects of the drug's efficacy, treatment duration, and safety.
Bernstein SocGen's stance on Eisai remains positive despite the potential competition from Eli Lilly's donanemab. The analyst from Bernstein SocGen indicated that the approval of donanemab is anticipated and that the market should await the FDA's final decision on the drug's labeling and its subsequent market adoption.
The FDA's advisory committee's role was to provide insights on specific questions concerning donanemab's efficacy based on tau levels in patients, the appropriate treatment duration, and the balance between the drug's efficacy and safety.
Eisai's stock experienced a downturn following the advisory committee's favorable opinion towards Eli Lilly's drug, highlighting the competitive landscape in the Alzheimer's treatment market. The final regulatory decision on donanemab by the FDA is pending, which will further clarify the market dynamics for treatments in this sector.
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