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Recent data for cancer treatment manufacturer MorphoSys AG suggests the German biotech's shares could see a significant rally, according to Morgan Stanley. "Despite increasing competition, our updated analysis suggests peak global sales of $1.6bn for pelabresib," analyst James Quigley wrote in a Friday note. "In addition, while some clinical risk remains, the data so far suggests that MANIFEST-2 has a good chance of success, which should drive significant upside in the shares," Quigley said. Shares have sold off nearly 25% since mid-September, compared to the Nasdaq Biotechnology Index down 4% over the same period. MOR XBI YTD mountain MorphoSys vs SPDR S & P Biotech ETF in 2023.
Persons: Morgan Stanley, James Quigley, Quigley, SPDR, — CNBC's Michael Bloom Organizations: MorphoSys, pelabresib, Nasdaq, MF, P Biotech
Morgan Stanley thinks little-known drug developer Evotec could benefit from artificial intelligence advancements in Europe and new collaborations with peer companies. EVO YTD mountain Evotec SE stock has surged 40% from the start of the year. Meanwhile, a security breach in April did little to caution Quigley away from the stock. The analyst highlighted the company's potential to better use AI to aid in drug development in the future, as well as partnerships with big pharma names. "A number of Pharma companies are investing in internal AI/ML efforts," he added.
Persons: Morgan Stanley, Morgan Stanley's, James Quigley, Quigley, Evotec, Eli Lilly, — CNBC's Michael Bloom Organizations: pharma, Merck & Co, Bristol Myers Squibb, Novo Nordisk Locations: Europe, Germany
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