UPDATE: Morgan Stanley Downgrades XenoPort on Recent Failures

In a report published on Tuesday, Morgan Stanley analyst David Friedman downgraded

from Equal-weight to Underweight and lowered the price target on the company from $3 to $2 on the recent Ph 3 AP failure. In the report, Morgan Stanley stated, "We are downgrading to UW post the recent Ph 3 AP failure. We do not believe Horizant sales will accelerate, and view ‘829 as a) early stage, b) likely a long time from the market, and c) not clearly differentiated in a competitive MS market." XenoPort closed at $5.51 on Monday.