1 Big Pharma Stock in More Danger than Investors Realize

Eli Lilly (NYSE: LLY) just lost a patent fight for its lung cancer drug Alimta to generic drug maker Actavis (NYSE: ACT). This UK court decision would cut the blockbuster drug's patent short by 6 years to 2015, not only in the United Kingdom, but also France, Spain, and Italy. 

At $2.7 billion in 2013 sales the importance of Alimta is already looms large, but when taking into account patent expiration for key franchises Cymbalta and Humalog, it becomes critical that Eli Lilly fight off generic threats in its appeal. 

In this episode of The Motley Fool's health-care show Market Checkup, analysts David Williamson and Michael Douglass discuss the court decision in detail, why Alimta is so important to Eli Lilly, and why investors need to watch the courts closely.

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  • Report this Comment On June 02, 2014, at 4:51 AM, gt7255 wrote:

    LLY's cash flow is more than adequate to sustain their 3.3% dividend yield. They just made the list of the top ten pharma companies in the world. Most drug companies are in transition as patents expire. The entire spectrum of drug action and efficacy is in the middle of a quantum shift. LLY's Cyramza, one of this new class of drugs that zero in on cancerous cells, is already having a strong effect on gastric cancer and showing promising results in the prognosis of recurrent lung cancer patients. Also, The licensing of the OTC Cialis franchise will be a strong new revenue stream with no cost to LLY. To be brief, if your investment horizon is not measured in months this year might be a buy opportunity for LLY.

  • Report this Comment On June 04, 2014, at 11:55 AM, ttbccrn wrote:


    Alimta has a patent extension in the US to 2025

    Nothing on the Eli Lilly investors web site regarding losing Humalog patent

    Please confirm and clarify

    Thank You

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David Williamson

The Motley Fool's Healthcare Analyst, I specialize in Pharma, Biotech, and how the ACA (Obamacare) is changing the business of healthcare in America. Follow me on Twitter for breaking stock news, policy thoughts, and misc musings...

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