Intercept selloff 'strong buying opportunity,' says Piper Sandler

Piper Sandler analyst Yasmeen Rahimi views today's post-earnings selloff in shares of Intercept Pharmaceuticals as a "strong buying opportunity." Management offer more color on the newly identified safety signal "hanging over" Ocaliva, guiding to a narrowed label being announced imminently which restricts access to primary biliary cholangitis patients with decompensated cirrhosis and compensated cirrhosis with portal hypertension, Rahimi tells investors in a research note. Importantly, management reiterated that these subsets of cirrhotic patients do not make up a significant portion of Ocaliva's target population and would not impact sales going forward, adds the analyst. Further, Rahimi views Intercept retracting its guidance for an Ocaliva resubmission in nonalcoholic steatohepatitis for the U.S. and E.U. as a "smart move." Rahimi keeps an Overweight rating on Intercept with an $82 price target. The stock in afternoon trading is down 10% to $17.11.