Healthcare Giant Eli Lilly Under FDA Lens Again For Manufacturing Lapses
Portfolio Pulse from Vandana Singh
Eli Lilly And Co (NYSE:LLY) is under FDA scrutiny due to manufacturing issues at its Branchburg, New Jersey plant. The FDA found eight deficiencies during a July inspection, which could affect the production of drugs like Emgality, Trulicity, Erbitux, and Cyramza. Eli Lilly has addressed some issues on-site and is working on ongoing improvements. The Branchburg facility is also under a DOJ investigation for past manufacturing and data falsification issues. In a separate legal matter, a $176.5 million verdict against Eli Lilly for patent infringement in favor of Teva Pharmaceutical (NYSE:TEVA) was overturned.
January 19, 2024 | 6:21 pm
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NEGATIVE IMPACT
Teva Pharmaceutical's legal win against Eli Lilly for patent infringement on its migraine drug Ajovy was overturned, potentially impacting TEVA's competitive advantage.
The overturning of the patent infringement verdict removes a financial liability for Eli Lilly and could weaken Teva's market position for Ajovy. This could have a negative impact on Teva's stock in the short term as it loses a potential revenue stream from the lawsuit.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
NEUTRAL IMPACT
Eli Lilly faces FDA scrutiny for manufacturing lapses at its NJ plant, which could impact the production of several major drugs. The company is also under DOJ investigation for past issues. However, a recent legal victory over Teva may offset concerns.
The FDA's findings and DOJ investigation suggest potential risks to Eli Lilly's production capabilities and reputation, which could negatively impact investor sentiment. However, the reversal of the $176.5 million verdict is a positive development. The net impact on the stock price is uncertain, hence a neutral score.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100