Analyst Liana Moussatos of Wedbush rates stocks in the biotechnology sector and is one of the top 100 analysts rated on TipRanks. Today, Moussatos provided commentary and analysis on biotechnology company XOMA Corp (NASDAQ:XOMA) and liver disease company Intercept Pharmaceuticals Inc (NASDAQ:ICPT). The analyst reflects on XOMA’s third-quarter results and Intercept’s Analyst and Investor event.
Moussatos reiterated an Outperform rating on shares of Xoma, with a $6.00 price target, after the company reported its third-quarter results and outlined its ambitious clinical development strategy for its pipeline earlier this month.
Moussatos wrote, “Xoma has completed its shift to an endocrinology focused biotech company. Xoma sold its manufacturing facilities, equipment and associated real estate to Agenus for $5MM in upfront cash and $1.0MM in common stock. The deal is expected to close before year-end. Concurrently, Xoma divested its biodefense program including its anti-botulinum toxin antibody to Nanotherapeutics. We have removed the remaining $5MM in collaboration revenue from our model which decreased 2016 revenue and EPS estimates. With the sale of these legacy programs, Xoma is primed to move its endocrinology program including, XOMA 358 (in Ph2) for hyperinsulinemic/hypoglycemia, XOMA 129 (preclinical) for severe acute hypoglycemia, XOMA 159 (preclinical) for rare inherited receptoropathies, and XOMA 213 (Ph2 ready) for hyperprolactinemia forward.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Liana Moussatos has a yearly average return of 20% and a 44.1% success rate. Moussatos has a -8.7% average return when recommending XOMA, and is ranked #71 out of 3855 analysts.
Intercept Pharmaceuticals Inc
Additionally, Moussatos reiterated an Outperform rating on shares of Intercept Pharma, with a fair value estimate of $493, after the company held an Analyst and Investor event on Monday, November 16. According to TipRanks.com, Moussatos has a -8.7% average return when recommending XOMA
Moussatos observed, “In our view, Intercept continues to demonstrate its plan to become an industry leader in the field of liver diseases. We believe that the recent weakness in the stock offers a buying opportunity in front of several potential material catalysts in the YE:15/H1:16 time frame: the advisory committee meeting and potential approval and launch of OCA in PBC, initiation of the Phase 2 NASH/Lipid study and Phase 1 testing of INT-767, and initiation of studies in patients with NASH and cirrhosis and pediatric NASH.”
Furthermore, “Despite being dwarfed by investor enthusiasm for NASH, we believe OCA for the treatment of primary biliary cholangitis (PBC) is an underappreciated gem that has the potential of achieving over $2BN in peak sales. We were generally impressed by the turnout and doctor enthusiasm surrounding the potential use and approval of OCA in PBC. We remind investors, PBC is the most common adult autoimmune liver disease.”
Out of the 17 analysts polled by TipRanks, 13 rate Intercept stock a Buy, 2 rate the stock a Hold and 2 recommend Sell. With a return potential of 135%, the stock’s consensus target price stands at $391.06.