Analysts Comment On Intercept Pharmaceuticals Amid Share Decline Following FLINT Data Delay
Shares of Intercept Pharmaceuticals (NASDAQ: ICPT) have dropped over four percent on the FLINT data delay.
On Wednesday, Chief Strategy Officer of Intercept, Rachel McMinn, said that the FLINT data is "unlikely" to come in July. Amid volatile stock action on the news, analysts commented on the company's trials and future opportunity.
Nomura Neutral on Intercept
Nomura analyst M. Ian Somaiya initiated coverage on Intercept Pharmaceuticals with a Neutral rating and $294.00 price target.
Somaiya is optimistic on obeticholic acid (OCA) but advises investors to wait out FLINT top-line data.
The analyst noted that OCA could be a "compelling" option for patients with liver disease. Nomura emphasized positive Phase III data in primary biliary cirrhosis (PBC) would support peak sales of $1 billion.
Somaiya wrote, "However, we believe the primary driver of ICPT's valuation is OCA's second indication, nonalcoholic steatohepatitis (NASH), for which we model peak sales of $10bn. Despite our bullish stance on OCA's potential in NASH, we are taking a risk-adverse stance heading into the upcoming FLINT top-line data readout. We believe the combination of heightened expectations for OCA to show fibrosis reversal, and our belief that available data are unlikely to answer all investor questions related to efficacy and safety, will likely create significant volatility in the shares, which we recommend more conservative investors avoid."
Summer Street Maintains Positive Thesis
Summer Street commented that it will not change its thesis on Intercept following the company's report that the FLINT data will likely be released in August. The analyst believes Intercept will seek "breakthrough therapy" designation for NASH, which may be the cause for the one month delay.
Summer Street reiterated a Buy and $650.00 price target.
Shares of Intercept fell five percent on Wednesday following McMinn's comments. The stock spiked to $260.07 after-hours before falling and hovering around $254.00. In Thursday's pre-market trading, share were up at $255.00 before a slight spike up another dollar and continual fall into the day's trading session.
At the time of publication, Intercept traded at $242.63, down 4.3 percent.
Latest Ratings for ICPT
|Jul 2016||Cantor Fitzgerald||Initiates Coverage on||Sell|
|May 2016||Cowen & Co.||Maintains||Outperform|
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