UPDATE: Bank of America Initiates Intercept Pharmaceuticals at Buy on Regulatory Outlook

Bank of America initiated coverage on Intercept Pharmaceuticals

with a Buy rating and a $29 price objective. Bank of America noted, "We are initiating coverage of Intercept pharmaceuticals (ICPT) with a Buy rating and DCF derived $29 PO. ICPT is a development stage pharmaceutical company focused on bile acid derived therapeutics. The company's lead product is OCA, a bile acid derivative, for the treatment of a rare autoimmune liver disease, primary billiary cirrhosis (PBC). We expect OCA will report positive Phase 3 trial results (2014). Our PO incorporates a heavier than normal risk adjustment for US approval pending additional clarity on the regulatory pathway in 2013; success in additional indications (e.g. portal hypertension) represent upside to our PO." Intercept Pharmaceuticals closed at $20.00 on Friday.