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Eli Lilly CRL ‘disappointing,’ but impact ‘likely limited,’ says Morgan Stanley

After Eli Lilly announced it received a Complete Response Letter, or CRL, from the FDA for its biologic license application for Mirikizumab for ulcerative colitis, or UC, Morgan Stanley tells investors that while the news is "disappointing" and the firm has pushed out expectations for the U.S. launch to 2024 from the second half of 2023, the company does not currently anticipate any impact on the supply of other products in the portfolio and the firm expects a limited impact to the stock given that the expected push out has a less than 1% impact on its 2023/2024 revenue estimates. Morgan Stanley has an Overweight rating and $445 price target on Eli Lilly shares.

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