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.