Despite a number of upcoming catalysts and positive long-term prospects, Ryan Beck analyst Mark Rupe downgraded the stock to market perform from outperform, maintaining his $52 price target. Shares were down 2.4% to $50.95. "Simply put, we would be more aggressive at lower levels," Rupe wrote in a research report.
In the agreement, OSI will receive an upfront fee of $25 million, up to $360 million in development and sales milestones and other payments, plus royalties on sales of any drugs brought to market. Lilly will gain exclusive rights to a new drug technology in OSI's type 2 diabetes and obesity portfolio. Shares of OSI were down 6 cents, or 0.2%, to $33.85 while Eli Lilly's shares were down 26 cents, or 0.5%, to $52.10.Genentech's (DNA) shares dipped despite positive data. The biotech giant said it saw "encouraging results" from a trial involving its drug pertuzumab, for women with certain difficult-to-treat cancers. The study involved patients with ovarian, fallopian tube or primary peritoneal cancer, whose disease failed to respond to prior treatments. "We are encouraged by the results of this trial, and will continue to analyze the data to help determine next steps for the pertuzumab development program," said Hal Barron, Genentech's chief medical officer. Shares were 14 cents lower at $83.89.