Morgan Stanley analyst David Risinger said Eli Lilly (LLY) and partner Incyte's (INCY) efficacy data from a Phase 2 study of baricitinib in atopic dermatitis looks inferior to competitors' "on the surface," but he contends that a steroid run-in period and usage during trial makes cross-trial comparison difficult. He thinks better efficacy is likely in Phase 3 if Lilly changes the trial design; however, if it does not, it could "end up being a commercial liability," Risinger tells investors. He keeps an Equal Weight rating and $86 price target on Eli Lilly shares.

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