Citi calls FDA communication 'new negative' for Intercept shares
Citi analyst Joel Beatty views the FDA's safety communication today on Ocaliva as a "new negative" for shares of Intercept Pharmaceuticals. The communication included additional details beyond what Intercept included last week in its letter to doctors, Beatty tells investors in an intraday research note. A "notable positive," however, is that the FDA did not accompany the communication with a label change or black box warning, the analyst adds. He sees today's development as increasing investor concern over whether Ocaliva will get a black box warning. The analyst continues to think such a warning is a not a given, but does believe the safety communications will hurt the drug's competitiveness in nonalcoholic steatohepatitis. Beatty has a Buy rating on Intercept with a $150 price target. The stock in afternoon trading is down 18%, or $17.98, to $80.14.