Wednesday, August 29, 2012

Seeking Alpha: Are Investors Giving Lilly Too Much Credit?

Good or bad, it hasn't been boring to be a Lilly (LLY) shareholder lately. Sell-side analysts continue to bat this name around, as quite a bit of the stock's value is tied to a pipeline that isn't expected to really start delivering for at least five years -- and many skeptics believe Lilly's demonstrated problems with R&D and pipeline development ought to merit a discount. But then there's the good news to consider as well -- a sooner-than-expected payoff tied to Bristol-Myers' (BMY) acquisition of Amylin and clinical data on an Alzheimer's drug that gives the bulls at least some hope.

The question I have, then, is whether this is a Big Pharma stock that really deserves to be trading near its 52-week high.

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Are Investors Giving Lilly Too Much Credit?

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