Eli Lilly Shares Tumble Amidst Legal Turmoil with Novartis Over Cancer Drug Patents

Eli Lilly faced legal challenges and market performance issues in recent weeks, affecting its stock and raising eyebrows among investors. On November 14, Lilly's shares dropped 3.15%, marking a continuous three-day decline, with a cumulative loss of 5.55% over the period.

In a notable development, Swiss pharmaceutical giant Novartis has initiated a patent lawsuit against Eli Lilly and its partners, accusing them of infringing patents related to the prostate cancer drug Pluvicto. This legal action is part of Novartis's broader strategy to protect its radiopharmaceutical empire, targeting several competitors including Lilly, its recent acquisition Point Biopharma, and collaborations with Lantheus in various jurisdictions.

This lawsuit underscores the competitive tensions in the radiopharmaceutical market, as Novartis seeks to expand its coverage of Pluvicto and another drug, Lutathera. The stakes are high as Pluvicto reached $1.04 billion in sales in the first nine months of 2024, crossing the blockbuster threshold.

Eli Lilly, having acquired Point Biopharma for $1.4 billion, now finds itself in direct competition with Novartis. The disputed asset, PNT2002, is pivotal to Lilly's strategic alliance with Lantheus, potentially valued at $2 billion, and targeting PSMA-positive prostate cancer. As these legal battles unfold, the radiopharmaceutical sector remains in the spotlight, with significant implications for all involved players.