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Fly News Breaks for May 23, 2019
RHHBY, ICPT
May 23, 2019 | 13:21 EDT
RBC Capital analyst Brian Abrahams said in a new note to investors that he sees "a number of interesting parallels" between Intercept (ICPT) and InterMune, which he notes was acquired by Roche (RHHBY) for $8.3B in 2014. While he admits that "it is not a perfect apples-to-apples comparison," he highlights that both companies' lead drugs had tolerability questions and finite exclusivity periods and that competitive risks have been "overly hyped" for Intercept's obeticholic acid and InterMune's Esbriet. The analyst, who contends that the similarities "further highlight the significant valuation disconnect" for Intercept, keeps an Outperform rating and $143 price target on the shares.