Drug manufacturing company Eli Lilly (LLY) - Get Eli Lilly and Company (LLY) Report was downgraded to "hold" from "buy" at Argus on Thursday. The firm said the rating change follows regulatory setbacks and as it sees the stock as fairly valued in light of the company's current challenges.

The stock is trading near its 52-week high and is "well above peer-average multiples," Argus said in a note. "We believe that this premium valuation is unwarranted given the loss of patent protection on key drugs over the next several years, and the recent late-stage pipeline setbacks for baricitinib (for rheumatoid arthritis) and solanezumab (for Alzheimer's)."

Shares of Eli Lilly were up by 0.48% to $81.35 on late Thursday afternoon trading.

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