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

To: D.J.Smyth who wrote (199)	5/1/1998 4:22:00 PM
From: Anthony Wong	Read Replies (2) \| Respond to of 642

Don't cry for Evista, it's a long-term win - Lilly Friday May 1, 1:02 pm Eastern Time CHICAGO, May 1 (Reuters) - Eli Lilly & Co. (LLY - news) said Friday that Evista, its new osteoporosis drug, will be a winner, despite waning faith on Wall Street that the drug will live up to its initially high expectations. ''We remain confident in the potential for Evista and believe it will be a very successful product over the long term,'' Lilly spokesman Jim Kappel said. Lilly's stock slid 2-3/4 to 66-13/16 at midday Friday on the New York Stock Exchange after being downgraded by Merrill Lynch analyst Richard Vietor, primarily on Evista disappointment. ''Any time Merrill Lynch or one of the giant firms downgrades, the stock will move. We also have a lot of profit-taking in the drug group today,'' Neil Sweig, drug industry analyst at Southeast Research Partners, said. In a research report, Merrill's Vietor said that 31 physicians were interviewed about their attitudes toward Evista in a survey commissioned by the firm. Based on the results of the survey and other considerations, Vietor said he cut his intermediate and long-term ratings on Lilly to accumulate from buy. Physicians still view estrogen as the ''gold standard'' in fighting osteoporosis, he said. In addition, data coming out May 28 on Evista's breast cancer risk-reduction value will help the stock, but perhaps not as much as some hope, he said. ''Lilly's earnings growth will likely remain dependent primarily on Zyprexa and Prozac,'' he said, referring to the company's blockbuster drugs for schizophrenia and depression. Lilly's stock price has been frequently affected in recent months by prescription data for Evista, known generically as raloxifene and launched late last year amid high expectations. As the data have rolled in, analysts have steadily lowered sales estimates for the drug. ''The downgrades that have been occurring for the last three months or so have focused on disappointment over Evista,'' said Sweig, who projects $200 million in worldwide Evista sales this year.