Quietly on Jan. 13, Nextcure (NASDAQ: NXTC) filed a terse 8-K with the SEC stating that Eli Lilly (NYSE: LLY) was terminating a research and development pact forged in November 2018. Nextcure's stock righted itself after a brief sell-off the morning after the filing.
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Here's why investors shouldn't worry. While Eli Lilly provided a degree of validation to Nextcure's scientific approach, the programs focused on immuno-oncology were still in early stages with few public details. Some investors may interpret the termination as a sign that the technology does not work. I suggest those investors look closer at changes at Eli Lilly.