LLY - Eli Lilly Just Had a Setback. Is Its Stock Still a Buy?
2024-03-16 09:15:00 ET
When a company's big plans go awry, it's always worth reconsidering the merits of an investment. On March 8, regulators at the Food and Drug Administration (FDA) gave Eli Lilly (NYSE: LLY) an unwelcome surprise. Rather than granting approval to commercialize the company's Alzheimer's disease drug donanemab as expected, the FDA opted to delay its decision.
Instead, the FDA planned to call an advisory committee composed of third-party experts who would discuss and deliver a non-binding vote on whether to approve the drug. As there hasn't yet been a date set for when the advisory committee will meet, it's now quite clear that the timetable for launching donanemab will not follow management's preferred schedule.
Could the stock still be a buy even though there are obviously some reservations among regulators about the drug's merit?
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Eli Lilly Just Had a Setback. Is Its Stock Still a Buy?