Per Todd Zolecki, Adam Morgan had shoulder surgery this past month and Shane Watson is scheduled for surgery soon. The Phillies expect both to be out until August. This represents a big blow to the farm system as it makes it essentially two lost years for the pair of pitching prospects.
The immediate impact is that it forces the Phillies to keep Ethan Martin stretched out as a starter for depth right now. Given earlier estimates of recovery August sounds very conservative for both, so it looks like the Phillies will be easing both back in slowly. At this point we will have to wait until August to see if either have any of the stuff that made them top prospects a year ago.