Jefferies says Intercept selloff overblown, news is 'largely old'

Jefferies analyst Michael Yee believes the details in today's FDA communication on Ocaliva are largely in line with what was highlighted last week in Intercept Pharmaceuticals' safety patient letter to doctors. "Big picture, this is largely old news and already known," Yee tells investors in an intraday research note. The stock in afternoon trading is down is down $14.18, or nearly 15%, to $83.94. The risk/benefit of Ocaliva still "clearly favors" its use in primary biliary cholangitis patients that have a lack of alternative treatment options, the analyst contends. He views today's stock pullback as overdone and recommends buying Intercept at current share levels. Yee argues the stock currently ascribes no value to the "much larger and valuable" Phase III nonalcoholic steatohepatitis program. The analyst has a Buy rating on the shares with a $275 price target.