Here are 3 top health-care stock ideas for 2017 from Morgan Stanley

Traders work beneath monitors displaying Eli Lilly signage on the floor of the New York Stock Exchange.
Michael Nagle | Bloomberg | Getty Images

Morgan Stanley gave clients its favorite health-care stock picks for next year based on its appraisal of the companies with the best drug pipelines and growth opportunities.

"Several factors are likely to drive industry performance, most important Washington pricing discussions, financial results, pipeline newsflow, tax reform, and transaction activity," analyst David Risinger wrote in a note to clients Dec. 21. "Given recent earnings shortfalls and guidance reductions, we believe many investors want to see and assess 2017 guidance before building larger stock positions. The ability of management teams to regain investor confidence will be key to potentially better stock performance."

Health Care Select Sector SPDR Fund is down 4 percent this year through Wednesday versus the 10 percent return as investors worried over government scrutiny on drug pricing.

Here are three overweight-rated health-care companies Morgan Stanley recommends for 2017 even during the industry uncertainty.