Eli Lilly fears for Foundayo ‘unfounded,’ says Wolfe Research

Wolfe Research notes that the FDA received data on April 30 via its FDA Adverse Event Reporting System suggesting that a patient dosed with Eli Lilly’s (LLY) Foundayo reported a case of serious hepatic failure. Given the importance of Foundayo’s safety profile, the firm reached out to Lilly for further color and reports that it was told: “In line with our standard procedures, Lilly Global Patient Safety thoroughly assessed the individual report, which was submitted within days of commercial availability, and determined it was not reasonably related to Foundayo.” With the additional context from the company, the firm feels confident that today’s pre-market trading reaction is “overdone” and would be buyers on weakness, says the analyst, who has an Outperform rating and $1,325 price target on shares.