Morningstar Rating

Stock Research and Analysis

by Damien Conover, CFA

Bulls Say

Alzheimer's drug solanezumab could become a significant blockbuster drug if a follow-up Phase III trial supports previous clinical work.
Buoyed by several recent acquisitions, Lilly's animal health business should post strong growth during the next decade.
Lilly is increasing its focus on developing drugs for several unmet medical indications in neurology and oncology. The strategy should improve the success rate at the Food and Drug Administration, which has become exceedingly risk-sensitive to new drugs in well-treated areas such as cardiology. Read more 

Bears Say

A large portion of Lilly's valuation is tied to the Alzheimer's drug solanezumab, which carries a high degree of risk as the majority of drugs developed for this disease have failed.
Several of Lilly's recently launched drugs in the diabetes market are several years behind competitive launches and lack much differentiation.
The patent loss on antidepression drug Cymbalta is having an amplified impact on the company's bottom line because of the drug's high margins. Read more 


We view Lilly's stewardship as relatively standard. While we believe that Lilly's use of $6.5 billion to acquire ImClone in 2008 is not likely to generate good returns, the partnership with Boehringer Ingelheim greatly improved the strategic outlook   Read more 


Eli Lilly is a pharmaceutical company with a focus on neuroscience, endocrinology, oncology, and immunology. Lilly's key products include Alimta for cancer; Forteo for osteoporosis;   Read more 

What's Behind All These Health-Care Deals? 
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