|New Threads Only:|
|New Threads & Replies:|
Forum List » Value Ideas and Strategies|
Share and discuss value investing ideas and investing strategies.
Any More Upside in Eli Lilly?
Posted by: matsandalex (IP Logged)
Date: October 10, 2012 09:31AM
Shares of Eli Lilly (LLY) recently hit a four-high after some positive test results about its new Alzheimer's drug,
Barrons reported, "About 30% of patients with early-stage of Alzheimer’s showed benefits to memory and after taking solanezumab in a recent study, researchers announced at a conference on Monday. The drug hasn’t been approved by the FDA, and the company has not yet discussed the steps it will take to attempt to win approval."
The next question is whether the drug will be approved by the FDA which would mean that LLY would have the first pharma blockbuster drug in many years.
Shares have climbed 45% this year, making LLY the hottest big-cap pharma stock in the world right now.
The company is no longer a bargain from a PE perspective. The company increased its EPS guidance for the fiscal year 2012 from a range of $3.15 to $3.30, to $3.30 to $3.40. Shares now trade at the upper PE range of comparable pharma companies.
However, LLY features a strong balance sheet and healthy dividend of 4.4%. The company has a debt-to-equity of 38%.
The company is largely tied to the Alzheimer's drug development. To give one an idea of the market size, there are over 5 million people affected by the disease in the U.S alone. In addition, Alzheimer's is ranked sixth leading cause of death in the U.S.
Stocks Discussed: LLY,
Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.