In the wake of Russia’s invasion of Ukraine, several drugmakers, including medical equipment providers and healthcare companies, have announced plans to curtail their businesses in the country. However, they are finding it morally wrong to cut off all medical supplies. Also, they are exempt from the U.S. and European sanctions levied on Russia.
Recently, Eli Lilly & Co. (LLY) disclosed plans to suspend investments, promotional activities and any new clinical trials in Russia, along with the export of non-essential medicines.
The company will only be providing medicines for critical diseases like cancer and diabetes. Furthermore, it plans to donate any profit earned from these medicines to organizations dedicated to humanitarian relief.
Similarly, Abbvie, Inc. (ABBV) said that it has paused new clinical studies in the region, including screening and enrollment of clinical trial participants for its ongoing studies in Ukraine and Russia.
“As a global biopharmaceutical company, we have a responsibility to patients who depend on our medicines. We are committed to ensuring our patients in Ukraine, Russia, and throughout the region continue to have access to our essential and life-saving medicines,” the company said in a release.
Earlier, major drugmakers, including Johnson & Johnson (JNJ), Pfizer (PFE) and Merck (MRK), had announced similar plans of halting investments and pausing clinical trials in Russia and Ukraine.
Analyst’s Take
Last month, Truist Financial analyst Robyn Karnauskas reiterated a Buy rating on Eli Lilly with a price target of $292, implying 6.5% upside potential from current levels.
Consensus among analysts is a Moderate Buy based on 11 Buys and four Holds. The average Eli Lilly price target stands at $292.93 and implies upside potential of 6.8% to current levels.
Hedge Fund Trading Activity
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Eli Lilly is currently Very Negative, as the cumulative change in holdings across all 15 hedge funds that were active in the last quarter was a decrease of 2.5 million shares.
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