Pharmaceutical company Eli Lilly has dropped the development of its diabetes drug Air Insulin, at a cost between $90 million and $120 million.
The drug, which was in development with Alkermes, was in phase III trials as a potential treatment for types one and two diabetes.
The drug was designed to be inhaled rather than injected, and was one of several inhaled insulin products in development.
But rival drugmaker Pfizer dumped its own version, Exubera, five months ago after poor sales and doctors' concerns on its effects on lung function.
Lilly said the decision "is not a result of any observations during Air Insulin trials relating to the safety of the product, but rather was a result of increasing uncertainties in the regulatory environment, and a thorough evaluation of the evolving commercial and clinical potential of the product compared to existing medical therapies".
US-based Lilly said costs associated with winding down the programme will be between $90 million and $120 million, or $0.05 to $0.07 per share.
The company now expects 2008 earnings per share to be in the range of $3.73 to $3.90.
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