Abivax's (ABVX) drug obefazimod for the potential treatment of ulcerative colitis patients has shown promising clinical results, with experts seeing the potential for "broad uptake" of the drug in the long term, Morgan Stanley said in a note to investors on Friday.

Sentiment on lingering regulatory and labeling concerns has also improved as clinical data has come in, the note said.

Experts and opinion leaders were "unanimously positive" on obefazimod's efficacy, suggesting "broad opportunity" for obefazimod, the note said.

The drug's benefits outweigh potential risks of overly strict labeling or long-term adverse effects, the note said.

"Clear from our conversations is the near-unanimous support for obefazimod's efficacy profile, particularly on endoscopic measures," the note said.

Morgan Stanley rated Abivax overweight and raised its price target to between $159 and $202, from the previous $97 to $157.