Texas Sues Eli Lilly (LLY) for Allegedly Bribing Doctors to Prescribe Its Drugs
Elevate Your Investing Strategy:
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Texas Attorney General Ken Paxton announced the lawsuit on Aug. 12, claiming that Eli Lilly has been 'bribing' doctors and other medical providers to prescribe its medications for their patients. The state further claims that Eli Lilly bribed and illegally induced medical providers to prescribe its most profitable drugs, including the weight-loss medicine Zepbound.
'Big Pharma compromised medical decision-making by engaging in an illegal kickback scheme,' said Attorney General Paxton in announcing the lawsuit that seeks unspecified damages from Eli Lilly. The pharma company did not immediately respond publicly to the Texas lawsuit.
Fraud and Abuse
The lawsuit states that the Texas Attorney General aims to hold drug manufacturers accountable for fraud and abuse. Last year, the Texas Attorney General's office sued insulin manufacturers, including Eli Lilly, and pharmacy benefit managers alleging that they colluded to artificially raise the price of insulin.
The lawsuit in Texas comes as LLY stock has been reeling after the company issued clinical trial results for its new weight-loss pill that came in below Wall Street's expectations. Following the trial results being made public, Eli Lilly's share price fell 15% for its biggest decline since the 2008 financial crisis.
Is LLY Stock a Buy?
The stock of Eli Lilly has a consensus Strong Buy rating among 21 Wall Street analysts. That rating is based on 17 Buy and four Hold recommendations issued in the last three months. The average LLY price target of $946.89 implies 51.35% upside from current levels.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Los Angeles Times
16 minutes ago
- Los Angeles Times
Kellogg says it will remove artificial dyes from cereals by the end of 2027
NEW YORK — WK Kellogg Co. plans to remove artificial dyes from its breakfast cereals in the next two and a half years, according to the company and the attorney general of Texas. The maker of Froot Loops and Apple Jacks gave the timeline as U.S. food producers face increasing pressure from the U.S. government and consumers to phase out synthetic colorings from their products. Texas Attorney General Ken Paxton said Wednesday that Kellogg had signed an agreement assuring his office that the Michigan-based company would 'permanently remove toxic dyes' from its cereals by the end of 2027. Paxton launched an investigation earlier this year into whether Kellogg violated state consumer protection laws by continuing to use blue, red, yellow, green, and orange artificial dyes. Around the same time, U.S. health officials said that they would urge foodmakers to voluntarily work toward removing petroleum-based colors. Both Kellogg and General Mills, another major U.S. cereal maker, said they would. General Mills later joined Kraft Heinz, Nestle, Smuckers and some other food manufacturers in announcing target dates for making all their products without artificial dyes. But Paxton's office said Kellogg was the first to sign a 'legally binding' agreement. 'Following months of investigating and negotiating, I'm proud to officially say Kellogg's will stop putting these unhealthy ingredients in its cereals,' the attorney general said in a statement. Details about the terms of the agreement Kellogg signed, which is legally known as an assurance of voluntary compliance, were not immediately clear. The company did not comment on it directly when reached by The Associated Press on Thursday but said it appreciates 'the opportunity to work collaboratively with the Texas AG's office and share their focus on health and wellness.' Kellogg also pointed to its earlier commitment to phase out FD&C dyes, which are synthetic additives that the U.S. Food and Drug Administration approved for use in food, drugs and cosmetics. It said it already planned to stop launching new products with the dyes in January. 'We have announced we are reformulating our cereals served in schools to not include FD&C colors by the 2026-27 school year,' Kellogg said in an emailed statement Thursday. By the end of 2027, 'we will completely remove FD&C colors from the small percentage of our foods that contain them today.' According to Kellogg's website, 85% of the cereal the company sells contains no FD&C colors — and none of its products have included Red No. 3 for years. Federal regulators banned that dye from food in January. Synthetic dyes have long been used to make brightly colored cereals, drinks, candies, baked goods and even products like cough syrup. But health advocates have called for the removal of artificial dyes from foods, citing mixed studies indicating they can cause neurobehavioral problems, including hyperactivity and attention issues, in some children. The FDA has maintained that its currently approved dyes are safe and that 'the totality of scientific evidence shows that most children have no adverse effects when consuming foods containing color additives.' Pressure on the food industry has increased since Robert F. Kennedy Jr., an outspoken critic of such synthetic additives, became President Donald Trump's health secretary. Grantham-Philips writes for the Associated Press.
Yahoo
5 hours ago
- Yahoo
Poll finds Cornyn, Paxton in dead heat in Texas' Senate GOP primary
A new poll of Texas' Senate GOP primary shows Sen. John Cornyn leading Attorney General Ken Paxton by 1 percentage point, breaking a spell of public polling that had found the incumbent trailing by wide margins. In a sample of nearly 500 registered Texans planning to vote in the Republican primary, Cornyn garnered 30% of the vote to Paxton's 29% — well within the poll's 4.4% margin of error. Much of the Republican electorate is up for grabs, with 37% saying they were undecided. If neither candidate wins 50% plus one vote in the March primary, the top two candidates would advance to a May runoff. The poll was conducted by Emerson College between Monday and Tuesday — the first public survey of the bitter primary since Cornyn allies began deploying millions in advertising. Paxton and his allies, meanwhile, have largely kept their powder dry, waiting to go up on air until closer to the primary. Groups affiliated with Senate Republicans have committed enormous resources to Cornyn, arguing that a Paxton candidacy would jeopardize the party's hold on the seat and cost more money to defend. In a slideshow obtained by Punchbowl News, Senate Leadership Fund, the super PAC linked to Senate GOP leadership, projected that Republicans would need to spend over $200 million on Paxton in a general election. But in a broader pool of 1,000 Texas voters, the Emerson poll found both Republicans beating Democrat Colin Allred — the highest-profile declared Democratic candidate — beyond the margin of error. Cornyn garnered 45% to Allred's 38% in a hypothetical matchup, while Paxton led 46% to 41%. [John Cornyn enters critical window to change trajectory of Texas Senate primary against Ken Paxton] The latest findings differ significantly from previous surveys of the primary. The SLF presentation found that Paxton led Cornyn by an average of 17% across 13 polls between January and June. Emerson, like many pollsters, underestimated Republicans in 2024, finding in October that Republican presidential nominee Donald Trump led his Democratic counterpart, Kamala Harris, by 7 percentage points in Texas and that Allred was within 1 point of Sen. Ted Cruz. Ultimately, Trump won by about 13 percentage points and Cruz won by more than 8 points. Both Cornyn and Paxton are pursuing an endorsement from Trump, who has yet to weigh in on the contest and has endorsed both men in prior races. The Emerson poll suggests that the Trump endorsement could be the deciding factor for voters unsure of who they plan to support. 'Seven months ahead of the Republican Primary, the contest between the four-term incumbent and the Attorney General is a toss-up,' Emerson executive director Spencer Kimball said in a statement, noting the large share of voters who had yet to make up their minds. 'Among these undecided voters, President Trump's job approval stands at 73%, suggesting his endorsement could be pivotal in such a close race.' Beyond the Senate race, the poll found Trump's approval rating remains much higher in Texas than nationally, with 49% approving of the job he's done as president and 42% disapproving. Gov. Greg Abbott is less popular but still above water, with a net approval rating of 3 percentage points. Texans continued to rank the economy and immigration as their top issues, but their order has flipped since before the 2024 election, with the economy now taking the top spot at 30%. Amid Trump's crackdown at the border, illegal crossings — which had already begun to drop under President Joe Biden after spiking earlier in his term — have plummeted to the lowest level in decades. Looking ahead to 2028, Texas Republicans' preferred presidential candidate is Vice President JD Vance, the Emerson poll found. Vance stands far ahead of the field at 45%; Cruz, who ran for president in 2016, is second at 9%. On the Democratic side, no prospective candidate had a clear lead. Former U.S. Transportation Secretary Pete Buttigieg led the field with 22% support, followed by California Gov. Gavin Newsom at 20% and 2024 nominee Harris at 17%. Finally, the survey found that voters are paying close attention to state Republicans' effort to redraw Texas' congressional map to yield more GOP seats. Nearly 80% of voters said they are following redistricting very or somewhat closely. And they had mixed feelings about it: 36% support the redraw, 38% oppose it and 26% are unsure. But independents are against it by a margin of 19 percentage points. Texas House Democrats decamped to blue states en masse to freeze the Legislature's redistricting process, and Republicans have issued arrest warrants to attempt to compel them to return. Again, Texas voters were split — 41% agreed that the fleeing Democrats should be arrested, while 37% did not. More all-star speakers confirmed for The Texas Tribune Festival, Nov. 13–15! This year's lineup just got even more exciting with the addition of State Rep. Caroline Fairly, R-Amarillo; former United States Attorney General Eric Holder; Abby Phillip, anchor of 'CNN NewsNight'; Aaron Reitz, 2026 Republican candidate for Texas Attorney General; and State Rep. James Talarico, D-Austin. Get your tickets today! TribFest 2025 is presented by JPMorganChase.
Business Insider
6 hours ago
- Business Insider
Roku Stock (NASDAQ:ROKU) Dips as Howdy Installation Proves a Mite Aggressive
Remember just a couple of weeks ago when we first heard about the new Howdy streaming app from streaming video stock Roku (ROKU)? While some thought it was a fine idea, and others were not so certain, there are some signs that Howdy may be a bit more intrusive than anyone expected. And investors are not exactly pleased about this, sending shares down fractionally in the closing minutes of Thursday's trading. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Basically, not long after Howdy officially launched, Roku put out the command to install it on not only Roku devices, but also on every Roku smart TV. Anything with the Roku branding on it got Howdy whether its owner wanted it or not. Of course, for some, this was just a handy shortcut to get an app they were likely going to get anyway to see what was on it. But for others, they never wanted Howdy around in the first place. Reports note, however, that removing Howdy is surprisingly easy, and about as simple. Just start at the home screen, find Howdy—usually, newer apps install near the bottom of the list—and then just use the star button on your remote to open up options. Select 'remove channel' from there, and just like that, Howdy moseys off into the sunset. Should you change your mind later, reinstalling Howdy will work like installing any other app. A Seat at the Sports Table We all know that sports are playing an ever-increasing role in the strategies of streaming platforms. And, as it turns out, Roku will have a seat at the table in talking about the future of sports. It will be joining representatives of several other platforms including FuboTV (FUBO) and Amazon's (AMZN) Prime Video at the upcoming TheGrill 2025 event. Roku will be part of a session titled 'Sports & Streaming: Driving Value Across the Ecosystem.' The session will cover topics like rights purchases, building content hubs, and technical innovation in the sector. The end result should be a lot of new information coming out that demonstrates where the future of sports streaming will be headed. And Roku's presence therein demonstrates that it has credibility enough to join in the proceedings. Is Roku Stock a Good Buy? Turning to Wall Street, analysts have a Moderate Buy consensus rating on ROKU stock based on 15 Buys, six Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 48.62% rally in its share price over the past year, the average ROKU price target of $104.05 per share implies 18.91% upside potential.
