Eli Lily Gets Downgrade On Predicted Failure of Alzheimer's Drug

Published on Mon, 07/30/2012 - 16:22
By FNNO Staff in analysis, business finance, eli lily, fnno, lly, market, news, stock, trading
lly, eli lily, fnno, business finance, trading, stock, market, analysis, news

Drugmaker Eli Lily (NYSE:LLY) receiving a downgrade from Jefferies this morning. The analyst firm's said it downgraded the company because it expects Eli Lily's Alzheimer's treatment to tail in late-stage testing. Jefferies added that the drug only has a 25% chance of being effective in a niche population.

Eli Lily's rating is now underperform at Jefferies, down from a hold. The firm also dropped its price target to $35 from $37.

Results from late-stage testing of the drug solanezumab is expected to be released some time this quarter. The big reason why analysts are worried is a similar drug tested by Pfizer and Johnson & Johnson yielded very poor results.

Currently, Eli Lily stock is down almost 1% to $43.98.

By FNNO Staff
fnnonline@gmail.com

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