Citi Initiates Coverage on Eli Lilly (LLY) with a Neutral

July 18, 2008 8:12 AM EDT

Citi initiates coverage on Eli Lilly (NYSE: LLY) with a Neutral. Price target $52.

Citi analyst says,"FDA action on Effient (9/26) is the most important event for the stock. Effient Sensitivity Implies Upside — Our Effient scenario analysis suggests an attractive risk/reward for LLY’s shares. Our worst-case Effient scenario appears already priced into LLY's shares. Our non-risk adjusted scenario ($1.75B) yields $58/share and the optimistic scenario ($3.50B) yields $62/share...Over the next five-years, several key growth drivers (Zyprexa, Evista, Gemzar, Cymbalta) face generic competition. In addition, Lilly faces a number of P-IV patent challenges (Evista, Gemzar, Strattera, Cymbalta anticipated in August). The outcome of these challenges & level of late-stage pipeline success are critical for sustaining long-term growth."

Eli Lilly and Company discovers, develops, manufactures and sells products in one business segment, pharmaceutical products.


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Weak Stock Pick
freemeinc on Jul 18, 2008 12:49 PM

Conclusion: LLY lost a Star in the Fair Value section, earned two Stars in the Dividend Analytical Data section and earned one Stars in the Dividend Income vs. MMA section for a net total of 2 Star. This quantitatively rates LLY as a 2 Star-Weak stock. http://www.istockanalyst.com/article/viewarticle+articleid_2391675&title=Stock_Analysis_Eli.html Victim Speaks Out; Eli Lilly Hangman’s Noose http://rawstory.com/news/2008/CBS_Over_70_noose_incidences_confirmed_0214.html http://www.diversityinc.com/public/3855.cfm Nooses Punishable by Prison The Noose incidents in America’s corporations (Eli Lilly) and institutions in the recent past has served as an eye opener for a lot of us because we have come so far; but yet have so far to go. In addition, more African Americans have moved into the middle class, so the need for a civil rights movement seems less urgent. But talk to any Noose victim, and we will tell you that racist discrimination and hate crimes are not just things of the past they are practiced today (at Eli Lilly) and we have to continue the civil rights fight and petition all of our courts to send a strong message that these behaviors will not be tolerated. Welch et al v Eli Lilly Race Discrimination While as a victim I feel the sentence should be harsher, especially when displayed in a workplace at a major pharmaceutical company. I celebrate the recent state courts decision to make the hate crime punishable. Our work is not done until at least this level of punishment is adopted by all states especially Indiana where it happened to me. Nine months after the nation began witnessing an uptick in the number of reported noose sightings following the furor over the Jena 6 incident in Louisiana, lawmakers there, as well as in Connecticut and New York, have made hanging a noose a crime punishable by imprisonment. And more states are likely to follow. Since September of last year, the number of reported noose incidents nationally jumped to nearly 80, according to the DiversityInc Noose Watch, the first and only tracker of national reported noose sightings. These noose incidents are a part of a "larger phenomenon," according to Potok. According to the SPLC, the number of hate groups rose to 888 in 2007, up 5 percent from 2006 and 48 percent since 2000. To date, three states have passed laws to punish those who use nooses as a means to intimidate. Connecticut and New York passed laws in May, with prison sentences ranging from a year in Connecticut to four years in New York. Earlier this month, Louisiana, the state where thousands of protestors marched in support of the Jena 6, became the third state to pass such a law.


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