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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowThe price of Eli Lilly and Co.’s stock veered lower this morning after a Goldman Sachs analyst downgraded her rating from
"neutral" to "sell."
The downgrade pushed Lilly shares down as much as 3.5 percent this morning,
before they recovered partially. The shares were trading at $33.86 as of 10 a.m.
Indianapolis-based Lilly faces
the largest "patent cliff" in the industry, noted Goldman analyst Jami Rubin, according to Bloomberg News. Drugs
that account for about 60 percent of Lilly revenue will face competition from cheaper generic versions by 2014.
In
addition to the drop-off in revenue, Lilly officials have said they must spend heavily to get experimental drugs onto the
market.
The combination of falling revenue and rising spending will pinch profits, the Goldman Sachs report noted.
For the year, Lilly’s stock price is off nearly 14 percent. The Standard & Poor’s 500 index has risen 11 percent
so far this year.
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