Morgan Stanley's View of Baxter International is Not Changed by Rigosertib's Phase III Failure

In a report published Thursday, Morgan Stanley analyst David R. Lewis reiterated an Equal-Weight rating on

. In the report, Morgan Stanley noted, “Rigosertib's Phase III failure in high risk MDS is a slight incremental negative. Our model included a long-term contribution of $0.10 (1.3%) in EPS from this opportunity, which assumed a 35% probability of success. The collaboration between Baxter and Onconova began in 3Q12, when Baxter invested $50 million in equity and made an additional up-front payment of $50 million for rights to Rigosertib in both high risk and low-risk MDS (a total market opportunity of $1 billion) and pancreatic cancer. We assumed high-risk was the best opportunity for approval, and we assign no value for the rest of the program.” Baxter International closed on Wednesday at $69.12.