IBJNews

Lilly stock shrugs off analyst downgrade

Back to TopCommentsE-mailPrintBookmark and Share

Shares of Eli Lilly and Co. slipped only slightly Friday in premarket trading after an analyst lowered his rating on the shares, calling them "our least preferred US stock."

The Indianapolis-based drugmaker has become too reliant on its remaining pipeline of drugs under development for growth as it deals with patent expirations to big sellers and some drug-development setbacks, Jefferies analyst Jeffrey Holford said in a Friday morning research report.

"We are also skeptical of many of the remaining pipeline assets," he wrote.

Holford lowered his rating on the stock to "underperform" from "hold" and dropped his price target on the shares to $40 from $49.

He also said he expects increasing competition and slower sales volume from the U.S. diabetes market, which is a big source of revenue for Lilly, and he noted that drug companies in general face challenges from unfavorable foreign exchange rates and pricing pressure in Europe.

Lilly shares fell 45 cents, to $48.70 each, in premarket trading about 30 minutes ahead of the market opening. The stock has traded between $44.88 and $58.40 over the past year. It hovered around the same mark in early trading after the market opened.

An Eli Lilly spokesman declined to comment on the report.

Lilly will lose the patent protecting its top-selling drug, the antidepressant Cymbalta, from cheaper generic competition at the end of this year. It's already dealing with a revenue hit from the 2011 U.S. patent expiration for the anti-psychotic Zyprexa, the company's all-time best-selling drug.

The company said late last month that it no longer plans to seek regulatory approval for the drug ramucirumab to treat patients with a form of breast cancer that has spread. However, Lilly is studying the drug in other uses and will seek approval to use the treatment in combination with chemotherapy in stomach cancer patients.

The drugmaker said last week that it has 13 potential drugs in late-stage clinical development, or the final phase before a company seeks regulatory approval. Next year, it could launch a couple diabetes treatments and ramucirumab.

But Lilly also told investors and analysts that foreign exchange rates and slower growth in some markets will make it challenging for the company to meet its 2014 revenue goal.

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Yes sir keep cashing those 300K a year checks direct to IMS, while millions disappear from the teams like Rahal's. Guess there wasn't enough ka- ching going around to keep Sarah Fisher in business without their "merger". LOL._____.Meanwhile back in Realville the series with the "best racing in the world" drew what appeared to be about 5000 live spectators ( and probably 1500 of those Target "freebies", and was beaten in the ratings by a series that reportedly consists of "parades" and aired while most people are still sleeping. That will generate those big ka-chings for sure. :-). But, hey, as long as the Speedway gets the cash who gives a damn about the teams?

  2. Welcome to PETERSON LOAN AGENCY Company (A Personalized Service for All Your Financial Needs) We, Liberal Investment Company Providers offers loan at a very low interest rate of 2%, we offer Personal loans, Debt Consolidation Loan, Venture Capital, Business Loan, Educational Loan, Home Loan, and Loan for any reason and urgent needs!. with a maximum duration of 30 years. Have you been turned down by your bank? Do you have bad credit? Do you have unpaid bills? Are you in debt? Do you need to set up a business? Worry no more as we are here to offer you a low interest loan. Our loan ranges from $5,000-USD (Five Thousand US dollars) to $50, 000,000.00.(Fifty Million US dollars). We also lend in USA DOLLARS EURO and POUNDS ! Fill in this form and forward it to our email: PETERSONLOANAGENCY@GMAIL.COM 1. Your Full names:_______ 2. Contact address:_______ 3. Country Of Residence:______ 4. Loan Amount Required:________ 5. Duration:_____ 6. Gender:_____ 7. Occupation:________ 8. Monthly Income:_______ 9. Date Of Birth:________ 10.Telephone Number:________ 11. Purpose of loan:_________ Yours In Service, MR PERRY, PETERSONLOANAGENCY@GMAIL.COM

  3. If I could actually get the prices...I would do this on my own. We need laws that force provides to publish the costs they will charge. Everyone else gives you the price in advance...except hospitals.

  4. I was under the impression that fencing is not allowed on a front yard and that on a corner, both sides are considered "front" yards, therefore can't be fenced without a variance. Also impedes the visibility for drivers at the intersection. Am I understanding this correctly? Might be why a fence was not included in the plans and a request for a variance will have to be made?.

  5. I was a big fan of Cowards and Carrots, which I got a chance to see at the show. It's currently on Kickstarter, but the designer also put out What's He Building in There last year, which got a fair amount of buzz.

ADVERTISEMENT