Alzheimer’s drug failure could mean layoffs at Eli Lilly

This Tuesday, July 17, 2012, photo shows the Eli Lilly corporate headquarters in Indianapolis. Eli Lilly and Co.'s second-quarter net income tumbled 23 percent on an expected drop in sales for its antipsychotic Zyprexa, but the performance topped Wall Street expectations, and the drugmaker raised its 2012 earnings forecast. The Indianapolis company said Wednesday, July 25, 2012, that sales for Zyprexa, its all-time top-selling drug, sank 73 percent to $379.5 million in the quarter. (AP Photo/Michael Conroy)

INDIANAPOLIS (WISH)  —  Eli Lilly is reevaluating its staffing decisions, after a promising Alzheimer’s treatment failed in a late-stage clinical trial, according to the company.

Eli Lilly said last week that solanezumab failed to slow mental decline in people with mild Alzheimer’s. The study looked at nearly 2,000 people over the course of 18 months. Lilly shares fell sharply on the news.

“…sola results will cause us to reevaluate staffing decisions made in anticipation of positive results in EXPEDITION3. Affected employees will learn more as decisions are made,” said Nicole Herbert, a spokesperson for Eli Lilly.

Herbert did not provide further details about how many employees could be impacted or when potential layoffs could take place. Eli Lilly is scheduled to provide updated 2016 guidance and announce 2017 guidance on Dec. 15.

The company’s incoming CEO, David Ricks, has stressed the company’s dedication to fighting Alzheimer’s.