Eli Lilly (NYSE:LLY) continued to say no within the morning hours Friday even as a number of analysts defended the corporate after the FDA refused accelerated approval for its Alzheimer’s remedy donanemab.

Cantor Fitzgerald’s Louise Chen leads the pack, reaffirming the Overweight score and $432 per share goal on Lilly (LLY). “We assume an accelerated approval was broadly anticipated by the Street so the information immediately comes as a draw back shock,” the analyst wrote.

Chen stays optimistic on LLY’s (LLY) Alzheimer’s prospects as a result of ongoing confirmatory Phase 3 TRAILBLAZER-ALZ 2 trial, which is about for a topline readout in Q2 2023.

SVB Securities analyst David Risinger agreed, noting that the delay in FDA approval is “immaterial” and can permit the company to undergo the late-stage examine outcomes earlier than a ultimate determination.

“We’d be patrons on any weak point,” BMO’s Evan David Seigerman wrote, highlighting that the FDA determination solely delayed however didn’t deny the donanemab improvement. “Headline impression to the stock just isn’t nice, particularly after a softer 2023 information,” the analyst added, referring to the underwhelming 2023 outlook Lilly (LLY) shared in December.

However, Seigerman factors to the stock’s long-term potential given the market alternative for the corporate’s experimental weight reduction remedy Mounjaro and confirmatory Alzheimer’s information.

SVB and BMO have Outperform rankings and $410 per share targets on LLY.

Meanwhile, Jefferies analyst Michael Yee notes that the regulatory setback means a delay for the donanemab launch, and Lilly (LLY) can submit the remedy for conventional approval by mid-2023.

“This is a modest optimistic for Biogen” (BIIB), Yee wrote, pointing to the rival Alzheimer’s drug developer who, with companion Eisai (OTCPK:ESALY) (OTCPK:ESALF), gained the FDA signoff for its anti-amyloid remedy lecanemab early this month beneath accelerated approval.

Baird analyst Brian Skorney famous: “…we expect, at minimal, it offers Eisai some additional time in the marketplace… to construct a lead over donanemab.”

Seeking Alpha contributor Lane Simonian predicted in October that LLY stock would drop to the mid-200s if FDA declines donanemab.