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Food and Drug Administration on Friday approved a drug to treat lung and thyroid cancers driven by a specific genetic mutation that Eli Lilly and Co acquired with its 2019 purchase of Loxo Oncology. Lilly acquired a promising drug called selpercatinib with its Loxo purchase that it intends to submit for regulatory approval later this year, after the drug that treats cancers driven by a rare, specific genetic mutation produced positive lung cancer data. It did not disclose specific treatments affected by the decision. Lilly said it was expecting a regulatory decision on its rheumatoid arthritis drug baricitinib, whose marketing application was initially rejected by the U.S. Indianapolis-based Lilly is also hiring David Hyman to be chief medical officer of the new unit. U.S. drugmaker Lilly said it will send medicines for urgent medical conditions such as cancer and diabetes. Competitive threats will be important to watch over the course of the year given the importance of Trulicity and the broader diabetes business to Lilly, Credit Suisse analyst Vamil Divan said in a client note. Morningstar analyst Damien Conover. Bernstein analyst Dr. Tim Anderson said in a research note that Lilly's forecast for 2016 actually calls for "quite healthy" earnings and revenue growth compared to its peers, when the impact of foreign exchange rates is excluded.

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