AstraZeneca plc (ADR) (AZN), Eli Lilly & Co. (LLY): The Diabetes Pipeline With a Clog

Drug dependence

Eli Lilly & Co. (NYSE:LLY) is coming up on a wounding patent expiration of its $5 billion antidepressant Cymbalta and has cancelled a fair number of late-stage pipeline products.  But empagliflozin is only one of the company’s diabetes bets. There’s also an insulin and a GLP-1 agonist meant to compete with Sanofi’s Lantus and Novo Nordisk’s Victoza, respectively. It would help the company to at least get two of these drugs to market.

Bristol Myers Squibb Co. (NYSE:BMY) and AstraZeneca plc (ADR) (NYSE:AZN) took a giant step into the diabetes market with last year’s acquisition of Amylin, which brought in the GLP-1 agonists Byetta and Bydureon. But the companies have both also suffered major patent losses in the past couple of years. And AstraZeneca plc (ADR) (NYSE:AZN)’s had problems getting its pipeline to pay off.

Johnson and Johnson (NYSE:JNJ) wins at becoming the first SGLT2 to market but also because this is the company least reliant on a victory here. The recent second quarter report beat estimates. The company is at the forefront of the game-changing, all-oral hepatitis C drugs coming down the pipes. And, as Brian Orelli noted, the company’s always a buy if you’re patient enough.

Foolish final thoughts

SGLT2 drugs have lost the glossy shine of hype but that doesn’t mean they’re valueless. Invokana’s approval proves it’s possible to get to market if a drug has a decent safety profile and if the company is willing to jump through some FDA hoops.

Eli Lilly & Co. (NYSE:LLY) and AstraZeneca plc (ADR) (NYSE:AZN) are most in the need of an SGLT2 win, but empagliflozin seems to have fewer issues than Forxiga. As for Lilly’s chances of approval — it’s safest to wait and see which way the FDA wind blows.

The article The Diabetes Pipeline With a Clog originally appeared on Fool.com and is written by Brandy Betz.

Brandy Betz has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson. Brandy is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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