UPDATE: Morgan Stanley Reiterates Underweight Rating, Removes PT on Theravance Following Anoro Launch

In a report published Thursday, Morgan Stanley analyst David Friedman reiterated an Underweight rating on Theravance THRX, but removed the $12.00 price target. In the report, Morgan Stanley noted, “Anoro (Umec/VI) recently launched in the US. In light of the slow Breo launch, Street optimism is migrating to Anoro. Differences in starting royalty rate (15% for Breo sales <$3bn vs. 6.5% for Anoro) is one dominant reason we see it as unlikely that Anoro will ever accommodate for the likely Breo shortfall. Below, we discuss our rationale as to why we expect Anoro will launch and ramp below consensus.” Theravance closed on Wednesday at $28.86.