CSL, Telix lead biotech selloff after Eli Lilly tanks on Wall Street
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The news: Australian pharmaceutical companies retreated in morning trade after shares in US pharma giant Eli Lilly dived 14% overnight, due disappointing data on its new oral weight loss pill.
The numbers: CSL (-1.3%) and Telix Pharmaceuticals (-3.6%) were both lower at 11:20am AEST.
Smaller biotechs Clarity Pharmaceuticals (-9.5%) and Mesoblast (-1.5%) also dropped while Neuren Pharmaceuticals added 1.1%.
Healthcare was the worst performing sectoral index, falling 1% as the ASX 200 traded roughly flat.
The context: Eli Lilly saw USD100 billion ($153.5 billion) wiped from its market value overnight after the company released results from an obesity pill study, which showed lower-than-expected weight loss, but higher rates of side effects such as nausea and vomiting.
The study results overshadowed an otherwise steady financial report, which included strong growth from the company's current obesity medicine, and an improved annual profit and sales forecast.
The source: Bloomberg
