Intercept Pharmaceutical Shares Up Amid Deutsche Bank Initiation

In a note released Monday morning, Deutsche Bank analyst Alethia Young initiated coverage on Intercept Pharmaceuticals ICPT with a Buy rating and a $395 price target.

Young noted that Intercept is in the process of developing its lead asset OCA for the treatment of PBC and NASH.

Looking a head, Young wrote, "We think a stat sig trend on NASH clearance is essential for accelerated FDA approval and to remain competitive."

Young added, " We think shares currently reflect ~35% chance of success for NASH. We see some downside protection in the fact that if NASH fails in Ph2b, the co will likely price PBC higher."

Young is forecasting a price range of $336-$404 per share on good data and $110-$146 per share on bad data.

Shares of Intercept are up 3.4 percent at $229.77.