The news that Eli Lilly's experimental anti-clotting drug Prasrugel was linked with a higher risk of fatal bleeding has converted a large group of analysts into disbelievers in the company's stock price. Specifically, Barron's is quoting a slate of analysts skeptical that the drug can be approved as is and worried by the absence of any other potential blockbuster in the Lilly pipeline. Lilly has maintained a much more optimistic attitude, noting that its recent crop of data indicates that the drug demonstrated efficacy in reducing heart attacks and strokes with fewer major incidents than Plavix. The analysts are betting that the FDA will want more studies--and that will take considerably more time than planned.
- read the report from Barron's