Lilly’s Latest Drug is a Flop

Bad news for one of our Buy List stocks. Eli Lilly‘s (LLY) latest blood thinner drug is a massive flop. Lilly’s problem continues to be its lousy pipeline of new drugs.

“A research philosophy is fraught with risk and opportunity,” Mr. Fernandez said in an interview. “And over the last five years, Lilly has seen more of the risk of drug development than they have the reward.”
In a note to investors, Mr. Fernandez wrote that Lilly must move aggressively on partnerships and acquisitions to increase its revenue because more than 70 percent of its forecasted sales from existing products would lose patent protection globally by 2017. That includes the antipsychotic drug Zyprexa, the antidepressant Cymbalta and the cancer drug Gemzar, all blockbusters with more than $1 billion in sales.

Posted by on February 15th, 2010 at 11:25 am


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