LLY Issues Disappointing Long Term Guidance

Analyst Richard Purkiss of Atlantic Equities maintain his “underweight” rating on Eli Lilly (NYSE: LLY). The target price for LLY is set to $31.

Eli Lilly has issued its 2010 guidance inline with expectations. However, its guidance for 2012-2014 was disappointing. Many of the company’s patents are expected to expire during this period.
Eli Lilly has reviewed key pipeline projects in Diabetes, Alzheimer’s, Rheumatoid Arthritis, CNS and Oncology. As LLY is confident about sustaining the current dividend levels through 2014, it would maintain its current investment levels through the period, the analyst believes. The company expects to launch two new drugs every year from 2013.