Lilly stops development of diabetes treatment

(Reuters) - Eli Lilly & Co said on Friday it scrapped development of an experimental diabetes treatment that had raised concerns of liver problems. Lilly had delayed applying for marketing the treatment —basal insulin peglispro — earlier in the year, after studies reported an increase in liver fat in patients. A severe buildup of fats in the liver can cause inflammation and scarring of the organ, and progress to liver failure. However, the company has said peglispro was not associated with the increase in liver enzymes. The drugmaker said on Friday that the decision was based on discussions with regulators and external experts. Lilly had developed peglispro as a long-acting treatment for type 1 diabetes and the more common type 2 diabetes. Nearly 12 in 1000 Americans are diagnosed with diabetes every year, according to the Centers for Disease Control and Prevention. Eli Lilly's shares closed at $83.06 on Thursday. (Reporting by Vidya L Nathan in Bengaluru; Editing by Don Sebastian and Sriraj Kalluvila)