UPDATE: Morgan Stanley Initiates Underweight, $12 PT on Theravance

Morgan Stanley initiates coverage on Theravance

with an Underweight rating and a price target of $12 a share, reflecting a more cautious look on Relovair success. Morgan Stanley notes, "We are more cautious vs. consensus on the company's lead drugs (Relovair and LAMA/LABA for COPD/asthma), both GSK partnered, from a regulatory and commercial view. We model $2.8bn of 2017 franchise WW sales vs. consensus' $3.4bn. We see a less attractive risk/reward for THRX vs. our coverage." THRX closed at $19.37 a share on Monday.