Lilly's cancer therapy Lartruvo fails study, shares drop

(Reuters) - Eli Lilly and Co said its cancer treatment Lartruvo failed to meet the main goal in a late-stage trial and it expects to take a charge in the first quarter of 2019, sending its shares down more than 2 percent in early trade.

The treatment was being tested in patients with advanced or metastatic soft tissue sarcoma.

The company said it expects to take a first-quarter charge, related to Lartruvo, in the range of $70 million to $90 million pre-tax, or about 10 cents per share after tax.

Lilly also said it expects the trial failure to have an impact of about 17 cents per share on its full-year 2019 earnings forecast.

Lilly said the study did not confirm the clinical benefit of Lartruvo, used in combination with the standard-of-care chemotherapy doxorubicin, when compared to doxorubicin alone.

Lartruvo was granted accelerated approval on mid-stage trial data by the U.S. Food and Drug Administration in 2016, with continued approval remaining contingent on the results of a late-stage trial.

The company said it is working with regulators to determine the appropriate next steps for Lartruvo.

(Reporting by Saumya Sibi Joseph in Bengaluru; Editing by Shailesh Kuber)