Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Eli Lilly -- Ignore unavailable to you. Want to Upgrade?

To: lazarre who wrote (117)	4/6/1998 4:48:00 PM
From: Seni Sangrujee	Read Replies (1) \| Respond to of 642

RESEARCH ALERT-Eli Lilly upgrade detailed NEW YORK, April 6 (Reuters) - Furman Selz analyst James Flynn, in raising his rating on Eli Lilly and Co.'s shares to buy from hold, said the company's drug Evista may benefit from Zeneca Group Plc's (quote from Yahoo! UK & Ireland: ZEN.L) drug tamoxifen. Recent trial studies by the National Cancer Institute with tamoxifen showed a 45 percent reduction in breast cancer among women at higher risk, according to an article in the Philadelphia Inquirer. -- ''While Evista is presently approved for osteoporosis prevention and tamoxifen for the treatment of breast cancer, both products are thought to have roughly equivalent action on breasts and bone,'' Flynn wrote in a research report released on Monday. ''The primary difference between the products appears to be that tamoxifen, unlike Evista, can cause endometrial hyperplasia, a precursor to endometrial cancer.'' -- Lilly shares were up 2-5/16 to 60-7/8 in late trading Monday.

To: lazarre who wrote (117)	4/6/1998 4:53:00 PM
From: Anthony Wong	Read Replies (1) \| Respond to of 642

Lazarre, I noticed that LLY started to recover at 11 plus AM (which was before the upgrade, issued at 1:46 PM, and the Evista scripts, newswire out at 12:09 PM). Last time I looked, ZEN was up more than $10 on the news, and nobody knows how far this new indication of tamoxifer is going to translate into scripts. Now, all we need is some news to push LLY back up to a reasonable valuation (compared to the rest of the drug group). If you look at I.Q. chart on LLY (look at the stochastics), there was a buy signal on Friday: 207.95.154.130 Today's reversal, IMHO, is due to 1) stock being very oversold 2) shorts covering because of the news (tamoxifer/Evista and upgrade) 3) some value investors buying? <Do you have any idea how long it will take for this indication to translate into scripts?> The scripts news release mentioned "later this year". Perhaps we'll have more information later on. Regards. Anthony