Intercept investor uncertainty looks overblown, says Jefferies
Jefferies analyst Michael Yee says investor uncertainty around the safety of Intercept Pharmaceuticals' Ocaliva looks overdone "in the big picture." As the drug is unlikely to be pulled from market, the primary biliary cholangitis opportunity alone is probably worth $60 or more, Yee tells investors in a research note after meeting with management. Intercept closed yesterday up 3c to $59.15. The analyst believes investors are not paying for the "much larger" $1B-$2B nonalcoholic steatohepatitis opportunity, which is in Phase 3 and will read out in the first half of 2019. The NASH opportunity is "essentially free upside over a 1-2 year time horizon," Yee contends. He keeps a Buy rating on Intercept with a $135 price target.