UPDATE: Credit Suisse Downgrades Elan Corporation to Neutral

Credit Suisse cuts its rating on Elan Corporation ELN from Overweight to Neutral as it believes shares are fairly valued ahead of Bapi P3. Credit Suisse says, "High risk/High reward but ultimately fairly valued ahead of Bapi P3: Following a detailed review of the Alzheimer's market (see our global report published today; Alzheimer's Disease Deep Dive: Greater Conviction in Bapi, Lesser Solace for Sola) we downgrade Elan to Neutral. Mid-2012 release of the first P3 data for Elan's Alzheimer's drug bapineuzumab (“Bapi”) will be a major event for the strategic direction of the company and the stock price. We calculate 25% downside should the data read out negatively. However, the upside to the stock price on positive bapineuzumab data is very significant." ELN closed at $13.44 a share yesterday.