Citi Comments On LLY 10-K

After reviewing Eli Lilly's LLY 10-K, Citi is providing some comments on the stock.

“LLY's net debt position was -$200M leaving 2010 vs. -$2.2B/-$4.5B in ‘09/'08,” Citi writes. “LLY has $6.7B in cash/equivalents. We expect bus. dev. to be the priority for cash rather than debt pay down/share repo.”

Regarding the addition of a fifth core therapeutic area, Citi writes, “Central nervous system, endocrine (incl. diabetes, obesity & musculoskeletal disorders), oncology, & cardiovascular diseases are joined by autoimmune diseases.

“LLY has its BAFF antibody in Ph-III for Lupus/RA (Ph-II RA data at EULAR) & a JAK1/2 inhibitor (partnered with INCY in RA) & its IL-17 antibody in Ph-II (RA/psoriasis 1H11 readout). LLY has a limited sales presence in immunology. If any of these compounds are successful, LLY can easily assemble a new sales force (or partner) to compete with PFE/AMGN, JNJ/MRK, ABT, UCB, BMY, Roche & GSK/HGSI.”

Eli Lilly currently trades at $34.66.