Eli Lilly And Co (NYSE: LLY)
Eli Lilly isn’t having the best of days in the market today. The stock started out on a low note from after-hours trading and has been inching its way further into the red. However, minutes ago, inches became feet as the stock spiked further down. We believe we’ve found the cause! Today, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching for with regard to LLY ahead.
LLY Is Taking A Dive
As mentioned above, Eli Lilly hasn’t had the best of days in the market. Since the opening bell, the stock has been firmly in the red, with little chance of making it to the green. However, minutes ago, the stock spiked further downward. Currently (10:54), LLY is trading at $76.99 per share after a loss of $1.35 per share (1.72%) thus far today.
Why We’re Seeing The Drop
As soon as we noticed that LLY was headed downward, the CNA Finance team got to work digging through news and social feeds to see what was happening. It didn’t take long to find the story. The reason Eli Lilly is taking a dive has to do with news out of Humana.
Today, Humana released an update for its 2017 Formulary. Unfortunately for LLY, the company has dropped coverage of Humalog. Humalog is a very important treatment for the company, so it’s no surprise that we’re seeing a dive on this news.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be digging further into this news to see how LLY is likely to be impacted. Keep in mind that Eli Lilly is a massive company and has plenty of other treatments on the market. However, it’s definitely not a good thing that Humana has dropped coverage for the treatment. We’ll keep you posted on the data as we dig it up!
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