UPDATE: Morgan Stanley Reiterates Underweight Rating, Removes PT on Eli Lilly & Co. on Lackluster Survival Benefit

In a report published Monday, Morgan Stanley analyst David Risinger reiterated an Underweight rating on Eli Lilly & Co. LLY, but removed the $48.00 price target. In the report, Morgan Stanley noted, “Ramu's survival benefit in 2nd-line lung cancer was below expectations and almost not statistically significant. The hazard ratio (HR) was 0.857 (OS 10.5 months vs. 9.1 months); however, the Street was looking for HR < 0.80. In other words, the Street expected ramu to improve survival by more than 20%, but ramu only improved survival by 14.3%. Additionally, the 95% confidence interval (CI) was 0.75–0.98, meaning the benefit was almost not statistically significant. For comparison, Avastin improved survival in 1st-line non-squamous lung cancer by 20% (HR 0.80, 95% CI 0.68–0.94, median OS 12.3 months vs. 10.3 months).” Eli Lilly & Co. closed on Friday at $59.86.