Is Eli Lilly stock – and much of the Pharma industry – in a bubble?

Lilly and Pharma have in the first half of the year outpaced the Dow and S&P which in turn are up significantly this year.  Today’s news (6/7/21) involving regulatory approval of Biogen’s Alzheimer’s treatment boosts the price of Biogen stock.  Curiously, it also boosts the price of LLY which has a competing treatment which would now appear to have fallen behind in the approval process.

A characteristic of bubbles is that all news, good or bad, seems to promote the price of all components

Full Disclosure:  The author of this entry has a small indirect interest in LLY.