UPDATE: Morgan Stanley Initiates Elan Corporation at Equal-Weight on Valuation, Asset Headwinds

Morgan Stanley initiated its coverage on Elan Corporation

with a rating of Equal-weight on low success probability for its Alzheimer's asset. Morgan Stanley commented, "Initiating at Equal-weight given 1) a low probability of success for imminent topline Phase III data for bapineuzumab in Alzheimer's disease and 2) a valuation that reflects a reasonable Tysabri growth and margin expansion outlook in multiple sclerosis." Elan Corporation closed at $14.35 on Friday.