Eli Lilly

(LLY) - Get Report

said Wednesday that U.S. drug regulators have granted final approval for its sepsis drug, Xigris.

What a coincidence. Lilly's good news comes just hours after

Chiron

(CHIR) - Get Report

said its rival sepsis drug

failed to meet its clinical goal in a late-stage test.

The Food and Drug Administration approved Xigris for use in patients with severe sepsis who have a high risk of death. That's a fairly narrow label for the drug, which could cut into sales.

Questions about the drug's safety and efficacy were raised during an FDA advisory panel meeting last month. This will force Lilly to conduct further studies before the FDA agrees to broaden the drug's label -- for use with patients with severe sepsis who have a lower risk of death, for instance.

"While not everyone will benefit from this treatment, we believe the approval of Xigris is an important advance for the treatment of this often deadly disease," said Bernard Schwetz, acting FDA principal deputy commissioner, in a statement.

Sepsis is a serious disease caused by infections in the blood that is fatal 30% to 50% of the time.

Shares of Lilly rose $2.19, or 2.7%, to close at $83.33 in Wednesday trading.