BUZZ-Valeant Pharmaceuticals: Morgan Stanley cuts rating
** Canadian drug maker's U.S.-listed shares down 7 pct at $166.91 after Morgan Stanley downgrades stock to "equal-weight" from "overweight"
** "We are less optimistic about future M&A prospects given Valeant's lower, re-set P/E and its ability to potentially swap/issue equity," Morgan Stanley analysts say
** Analysts also raise concerns regarding U.S. drug pricing scrutiny which may continue, slash PT from $284 to $200, 2nd lowest on Wall Street
** Valeant has fallen 10 pct since Sept. 28 when U.S. Democrats urged the company be subpoenaed to force it to provide documents related to "massive" price hikes for two heart drugs
** The voices against Valeant come after Democratic presidential hopeful Hillary Clinton on Sept. 21 criticized high drug prices; drug stocks have fallen sharply since
** Now 18 out of 22 brokerages covering the stock rate it "buy" or higher, 3 "hold" and 1 "sell"
** Their current median PT on stock is $287.50 vs. $290, two months ago
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