The FDA rejected the accelerated approval of Eli Lilly’s experimental Alzheimer’s drug
The U.S. Food and Drug Administration (FDA) rejected the accelerated approval of Eli Lilly and Co’s (NYSE:LLY) experimental Alzheimer’s drug due to a lack of enough trial data from patients treated for at least a year. Jefferies called this setback a “modest positive” for rival Biogen (BIIB).
At last glance, Eli Lilly stock was down 1.2% at $347.01, earlier as low as $344.58. The stocks 100-day moving average kept losses in check, however. Year-over-year, LLY is outperforming with a 42.7% year-over-year lead.
The majority of analysts are bullish on LLY, with 14 of the 16 in coverage carrying a “buy” or better rating. Plus, the 12-month consensus price target of $389.52 is a 12.3% premium to current levels.
Options bears are targeting LLY after today’s news. So far, 3,121 puts have been exchanged, which is double what’s seen at this point. The weekly 3/3 320-strike put is the most popular, where new positions are being sold to open.
Image and article originally from www.schaeffersresearch.com. Read the original article here.