Lilly's Plavix Alternative Gets FDA Panel Nod

Shares of Eli Lilly(LLY Quote) rose into the close Tuesday after an FDA panel unanimously recommended approval of its anticlotting agent prasugrel.

The nine members of the Food and Drug Administration's cardiology panel said the new blood thinner, which Lilly developed with Japanese drugmaker Daiichi Sankyo, is a significant improvement over its forebears for preventing blood clots in patients with heart problems. The drug, if approved by the FDA, would be an alternative to Plavix, sold by Bristol-Myers Squibb's(BMY Quote) and Sanofi-Aventis (SNY Quote).

Lilly had asked the panel to specifically evaluate prasugrel, which analysts say could bring in $1 billion in annual revenue, in patients requiring stents after arterial plaque removal .

Though the panel said prasugrel has life-saving potential, it said its use in people who've had a stroke should be discouraged.

Lilly, which makes such drugs as Cymbalta, Zyprexa, Prozac, Cialis and Byetta, which it comarkets with Amylin Pharmaceuticals(AMLN Quote), is among the big drugmakers -- GlaxoSmithKline(GSK Quote), Novo Nordisk(NVO Quote) and Pfizer(PFE Quote) and Bristol-Myers, to name a few -- thirsty for new drugs amid the impending onslaught of competition from generic versions.

The company recently swung to a fourth-quarter loss, in large part because of costs related to its acquisition of ImClone Systems.

Lilly shares closed up 3.8% to $38.69 and were tacking on an additional 1.1% in extended trading Tuesday.