UPDATE: JP Morgan Downgrades United Therapeutics to Underweight

JP Morgan reduced its rating on United Therapeutics

from Neutral to Underweight and lowered its price target from $50 to $40. JP Morgan commented, "We're moving to Underweight from Neutral on UTHR shares and lowering our Dec 2013 target to $40 from $50 on the back of yesterday's complete response letter (CRL) by FDA on oral Remodulin. While we recognize that oral Remodulin wasn't assumed in a lot of Street models (including ours), it was somewhat reflected in valuation and is it essentially the company's only upside driver over a 2+ year period. Given the rationale for the CRL, it doesn't seem to us that oral is approvable in the US or EU, at least not in the next 3-4 years." United Therapeutics closed at $53.28 on Tuesday.