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Eli Lilly Downgrade on Pipeline Concerns by Goldman

 (Image source: bloomberg)

Goldman Sachs downgraded the pharmaceutical company Eli Lilly & Co. (NYSE:LLY) from neutral to sell on concerns of pipeline weakness. The price target was slashed from $52 to $48 per share. Eli Lilly keeps suffering from recurring phase three clinical trial failures. This year alone the company had three major phase three trail setbacks. Currently, the stock is down above 1 percent on news of the downgrade. Here is a great chart from Yahoo Finance comparing Eli Lilly’s performance with competitors:

Company

5-year PEG

Forward P/E

Return on Equity

Quarterly Earnings Growth (YOY)

Quarterly Revenue Growth (YOY)

Eli Lilly

(3.30)

17.62

33.23%

30.60%

5.90%

GlaxoSmithKline

3.48

13.00

55.50%

(15.60%)

2.40%

Pfizer

4.63

12.51

14.04%

333.30%

(7.10%)

Merck

5.09

13.36

9.77%

(49.50%)

(10.60%)

Advantage

GSK

Pfizer

GSK

Pfizer

Eli Lilly

Source: Yahoo! Finance as of Oct. 4, 2013