UPDATE: Morgan Stanley Initiates Synageva Biopharma with Buy, $76 PT

Morgan Stanley initiates its coverage on Synageva Biopharma

with a Buy rating and a price target of $76 as it sees potential on an early but appealing orphan drug company. Morgan Stanley notes, "Synageva is focused on developing drugs for ultra-orphan diseases, an attractive area due to the streamlined development paths, more sustained pricing power (thus far), and higher operating margins. We are initiating OW as we believe the early proof of concept data for SBC-102 (see below) and the company's planned approach to commercialization could allow them to follow this successful ultra-orphan path." GEVA closed at $24.40 on Thursday.