Eli Lilly's stock rallies after appeals court upholds favorable patent ruling

Eli Lilly & Co.'s stock rallied 2.4% in midday trade Thursday, after the drugmaker confirmed a favorable court ruling related to its cancer treatment Alimta. The company said a federal appeals court upheld a district court ruling, that Teva Pharmaceutical Industries Ltd.'s proposed generic products would infringe on Lilly's vitamin regimen patent. Leerink Partners analyst Seamus Fernandez said the ruling "removes an overhang" and supports Lilly's positive 2017 financial outlook. Teva's stock fell 0.5% Thursday, which puts it on track to close at a 10-year low. Lilly's stock has lost 4.1% over the past 12 months, while Teva shares have plunged 47%, the SPDR Health Care Select Sector ETF has gained 3.8% and the S&P 500 has climbed 17%.

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