Eli Lilly (LLY) Might Be M&A Target if Things Don't Shape Up
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Price: $1,244.40 -2.81%
Rating Summary:
30 Buy, 5 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
30 Buy, 5 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Pharmas are about to get a rude awakening as many edge closer and closer to the patent cliff, resulting in the loss of exclusivity for many of their name-brand drugs.
According to research from Bernstein, pharmas are expected to lose about 50 percent of sales though 2020 due to the expiration of patents on drugs.
One company in particular, Eli Lilly (NYSE: LLY), may be facing more challenges over the next decade. Revenue at the company is expected to fall from $21.7 billion in 2010 to $9.7 billion by 2020 should the company fail to get any new drugs approved (a worst-case scenario). Otherwise, Bernstein sees revs dropping to $14 billion by 2020.
The firm boldly suggests Eli Lilly either make an acquisition, or prepared to be acquired itself.
Rival AstraZeneca (NYSE: AZN) will see sales slip from $32.5 billion to $23.5 billion in a best-case scenario.
Further, Novartis (NYSE: NVS) is set to become the largest drug maker in any scenario, according to Bernstein, with 2020 revs of $70.8 billion expected.
According to research from Bernstein, pharmas are expected to lose about 50 percent of sales though 2020 due to the expiration of patents on drugs.
One company in particular, Eli Lilly (NYSE: LLY), may be facing more challenges over the next decade. Revenue at the company is expected to fall from $21.7 billion in 2010 to $9.7 billion by 2020 should the company fail to get any new drugs approved (a worst-case scenario). Otherwise, Bernstein sees revs dropping to $14 billion by 2020.
The firm boldly suggests Eli Lilly either make an acquisition, or prepared to be acquired itself.
Rival AstraZeneca (NYSE: AZN) will see sales slip from $32.5 billion to $23.5 billion in a best-case scenario.
Further, Novartis (NYSE: NVS) is set to become the largest drug maker in any scenario, according to Bernstein, with 2020 revs of $70.8 billion expected.
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