Intercept price target lowered to $150 from $240 at Citi
Citi analyst Joel Beatty lowered his price target for Intercept Pharmaceuticals to $150 saying a "more robust" competitive landscape in both primary biliary cholangitis and nonalcoholic steatohepatitis could limit peak sales of Ocaliva. While the drug appears to be effective and safe in NASH, its overall profile may "not be strong enough to drive a rapid increase" in the NASH diagnosis rate upon approval, limiting the drug's first mover advantage, Beatty tells investors in a research after the company sent a letter to health care providers warning that serious liver injuries, including death, have been reported in primary biliary cholangitis patients dosed with Ocaliva at higher than recommended levels. Safety concerns are likely to remain an overhang on the shares at least until results from the Phase 3 Regenerate trial in the first half of 2019, which is beyond the 12 month time horizon of the new target price, Beatty writes. He keeps a Buy rating on Intercept. The stock yesterday closed down 13.5%, or $15.36, to $98.12.