Eli Lily (LLY) President and COO John C. Lechleiter reveals why shares of his company jumped 3% Monday after remaining nearly flat for years.
Mr. Lechleiter joins the guys for this conversation and says his company is seeing stronger than expected sales for its psychiatric drugs and is enjoying strong growth across the portfolio. And his company is experiencing double digit growth in Europe.
Dylan Ratigan asks if Wall Street’s bearish sentiment toward the drug sector is misguided.
Mr. Lechleiter says the science has never been more exciting. LLY has launched 9 new products since the beginning of the decade and invests 20% of sales in R&D.
Dylan adds that LLY’s chart was somewhat flat over the past few years.
Mr. Lechleiter replies that his stock was undervalued.
Dylan asks Tim Strazzini if the market has reached an inflection point in drug development.
Tim says ailments that afflict aging white men have driven pharma profits over the past few years. (Think Viagra and cholesterol drugs)
Going forward it will have to be innovation, he says. Tim adds Lily makes his short list of stocks he would buy. He also likes Johnson & Johnson (JNJ) and GlaxoSmithKline (GSK).
On APR 16, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders Strazzini Owns (POT), (TIN), (YHOO), (WY) Bolling Owns (NMX), Gold, Silver, (SZE), (VE) Najarian Owns (WM), (ETFC), (XLF), (EWBC)