UPDATE: Morgan Stanley Downgrades Lexicon Pharmaceuticals on Challenged Valuation

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 $2 to $1.50. In the report, Morgan Stanley noted, "...we are updating our assumptions for LX4211. We have sig. lowered LX4211 sales/royalties based on our analysis inside. Despite adding LX1032 to our model and decr. long-term spending, the updates combine for a lower DCF value, yielding our UW rating." Lexicon Pharmaceuticals closed on Monday at $2.37.