Market Overview

Intercept Pharma Notches 2 Upgrades On Ocaliva Prospects

Intercept Pharma Notches 2 Upgrades On Ocaliva Prospects
Related ICPT
Benzinga's Top Upgrades, Downgrades For December 12, 2018
The Daily Biotech Pulse: KemPharm, FDA Nod For Merck, Clovis Q3 Miss, 3 Stocks To Debut
B. Riley FBR likes NASH players Viking Therapeutics and Galmed Pharma in premarket analyst action (Seeking Alpha)

Intercept Pharmaceuticals Inc (NASDAQ: ICPT) reported top- and bottom-line beats last week that prompted two Street analysts to upgrade the stock.

The Rating

Goldman Sachs analyst Salveen Richter upgraded Intercept from Sell to Buy and more than tripled the price target from $46 to $157.

Wedbush analyst Liana Moussatos reiterated an Outperform rating and raised the price target from $203 to $217.

The Goldman Thesis

Goldman anticipates 60-percent upside driven by positive Phase 3 results for Ocaliva for nonalcoholic steatohepatitis due in the first half of 2019, Richter said in the upgrade note. (See the analyst's track record here.) 

Richter expects Ocaliva to achieve at least one of two primary endpoints considering positive read-through from the Phase 2 trial; a diminished standard for clinical efficacy; and the support of key opinion leaders for Ocaliva’s NASH profile.

With a successful trial, “we expect Ocaliva’s clinical profile, differentiated mechanism and first-mover status to provide an 18-month to two-year advantage prior to the second-generation therapeutics entering the NASH market,” the analyst said. 

Richter predicted $3.7 billion in global peak sales following a 2020 launch in the U.S. and Europe.

The Wedbush Thesis

Wedbush was equally inspired by Ocaliva’s prospects.

“Q2 OCALIVA net sales growth (22.8 percent quarter-over-quarter) suggests to us that the overhang on OCALIVA sales is lifting after Q1 revenues temporarily stagnated due to improper dosing of fragile patients,” Moussatos said. (See the analyst's track record here.) 

“Management reiterated guidance of $170 million to $185 million in 2018 OCALIVA net sales, giving us further confidence in sustained growth.”

They expect Intercept’s cash to last through anticipated Ocaliva launches for NASH in 2020 and for primary sclerosing cholangitis in 2021.

Price Action

Intercept shares were rallying 14.34 percent to $111.21 at the time of publication Monday. 

Related Links:

Raymond James Reviews Gilead Pipelines, Takes Bullish Stance On Pharma Stock

Cantor Fitzgerald Makes An Uber-Bullish Call On Galmed Pharmaceuticals

Photo by Nephron/Wikimedia. 

Latest Ratings for ICPT

Dec 2018B. Riley FBRInitiates Coverage OnBuy
Nov 2018OppenheimerUpgradesPerformOutperform
Oct 2018Raymond JamesDowngradesStrong BuyOutperform

View More Analyst Ratings for ICPT
View the Latest Analyst Ratings

Posted-In: Goldman SachsAnalyst Color Biotech Upgrades Price Target Top Stories Analyst Ratings General Best of Benzinga


Related Articles (ICPT)

View Comments and Join the Discussion!

Latest Ratings

View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

This Day In Market History: Paul Volcker Takes Over As Fed Chair

44 Stocks Moving In Monday's Mid-Day Session