BofA Sees Many Catalysts On Eli Lilly's Horizon

In a report published Tuesday, BofA Merrill Lynch analysts maintained a Neutral rating on Eli Lilly and Co LLY, with a price objective of $74, saying that there were several catalysts "on the horizon" for the company.

Eli Lilly reported its 1Q15 EPS at $0.87, beating the BofA and consensus estimates, driven by lower-than-expected R&D spend and higher-than expected other income. The EPS estimate for 2015 has been raised from $3.18 to $3.21.

Referring to the near-term catalysts, the analysts said, "A key takeaway from the call was the plethora of data readouts and potential approvals which LLY expects to occur over the next 12 months."

In the report BofA Merrill Lynch enumerated these catalysts as:

1. Phase III data presentations for ixekizumab (anti-IL-17 a/b) and baricitinib (JAK inhibitor) at appropriate medical meetings (mid-year)
2. Presentation of solanezumab EXPEDITION EXT data at a medical meeting (mid-year) – potentially the Alzheimer’s Association International Conference (AAIC – Washington D.C., Jul 18-23),
3. Launch of Basaglar (Lantus biosimilar) in the EU (3Q)
4. Jardiance CV outcomes top-line readout (3Q),
5. Evacetrapib (CETP inhibitor) CV outcomes trial interim analysis (futility only – 3Q)
6. Phase II data on LLY’s CGRP antibody (potentially 3Q)