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Lilly's Clean Bill of Health

...Their sales fell 5% and 17%, respectively, in 2005, on concern about adverse side-effects.

Some analysts also fear that Lilly's Cymbalta, introduced in September 2004 to treat diabetic peripheral-neuropathic pain, cannot continue to grow at a strong pace in 2006.

In its first full year on the market in 2005, Cymbalta sales rose over 600%, but have slowed in recent months amidst increasing competition.

The slowdown has raised questions about whether Cymbalta can be the $2 billion-plus blockbuster that Lilly fans believe it will be in two or three years.

In a recent report, Kavita Thomas, an analyst with First Global, a London securities firm, wrote: "The major risk remains stagnant And Cymbalta's growth has clearly moderated during the past few months." And she maintained: "Lilly doesn't possess a very strong pipeline, with just a few molecules in the late- development stage, which we believe is an obstacle for any potential upside for the stock.

We believe Lilly's shares are fairly valued in the near term." Company officials strongly disagree, noting that Lilly has lau...

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