Cowen Raises the Price Target on Eli Lilly & Co. (LLY) Following Alimta Patent Win

Cowen reiterates an Outperform rating on Eli Lilly (NYSE: LLY), and raised the price target to $90.00 (from $85.00), following today's Alimta patent win. The U.K. Court of Appeal ruled that the Alimta (pemetrexed disodium) vitamin supplementation patent would be infringed by generics. Analyst Steve Scala now forecast Alimta ACE (Australia, Canada, Europe) sales of $790MM in 2015, $740MM in 2016, and $500MM in 2020.

Scala commented, "Today the U.K. Court of Appeal ruled that the Alimta (pemetrexed disodium) vitamin supplementation patent would be infringed by generics. The Court of Appeal stated that sale of alternative salts would result in indirect infringement by supplying an essential means for putting the patented invention into effect. In Europe, the compound patents for Alimta expire in December 2015. The vitamin regimen patent for Alimta expires in the UK, France, Italy and Spain in June 2021. This decision overturns an English High Court ruling in May 2014 which concluded that the vitamin supplementation patent for Alimta would not be infringed by generics. The Alimta vitamin supplementation patent was previously defeated in a German Court, although this decision is under appeal. The Alimta sales base to which today’s decision applies is about $600MM."

For an analyst ratings summary and ratings history on Eli Lilly click here. For more ratings news on Eli Lilly click here.

Shares of Eli Lilly closed at $82.26 yesterday.

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