Galapagos downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Judah Frommer downgraded Galapagos (GLPG) to Underweight from Equal Weight with a price target of $22, down from $31. The Deprioritization of GLPG5201 in CLL/RT – Chronic lymphocytic leukemia, Richter’s Transformation – leads the firm to lower its probability of success in these indications within its model, the analyst tells investors in a research note. Morgan Stanley adds that value inflection potential catalysts for Galapagos are likely over 12 months away as the firm awaits incremental clinical activity within the ‘5101 program.