In a research report published Friday, Wedbush analyst Liana Moussatos reiterated an Outperform rating on Intercept Pharmaceuticals (NASDAQ:ICPT) with a price target of $493, as the company announced that the FDA had awarded its clinical stage drug obeticholic acid breakthrough therapy designation as a treatment for nonalcoholic steatohepatitis, or NASH.

Moussatos wrote, “We believe the current negative investor sentiment concerning a potentially arduous and long NASH clinical program may turn around with breakthrough therapy designation and when investors realize that OCA could be on the market for PBC in both the US and EU in 2016. Recall that Breakthrough Therapy Designation for OCA in NASH can reduce regulatory requirements and shorten review times.”

The analyst continued, “We have moved our OCA/NASH launch from July 2018 to March 2018 as the review period is six months instead of ten months. We believe the FDA recognizes the uniqueness and value of the FLINT results without getting lost in the minutiae which led to ICPT’s recent devaluation.”

Intercept Pharmaceuticals, Inc., a development stage biopharmaceutical company, focuses on the development and commercialization of novel therapeutics to treat chronic liver and intestinal diseases utilizing its proprietary bile acid chemistry.