Needham & Company analyst Alan Carr weighs in with a few insights on Intercept Pharmaceuticals Inc (NASDAQ:ICPT), after hosting a meeting with Doug Dieterich, MD and Alyson Harty, RN (Mt. Sinai Division of Liver Diseases) yesterday.
The discussion focused on the PBC patient population and the commercial prospects for Intercept’s Ocalivia, which is currently under review by the FDA and EMA. The discussion led the analyst’s to reiterate a Buy rating with a PT of $350.
The analyst sees great opportunity for Ocaliva, noting, “Dieterich and Harty characterized PBC pt [patient] population as knowledgeable and motivated to limit progression of disease. They estimate ~10% of PBC pts under care in Mt. Sinai system are immediately suitable for treatment w/ Ocaliva and are currently reaching out to pts to arrange appointments next month in anticipation of drug approval. This may lead to a stronger launch than guided by the company if other centers are acting similarly. Dieterich believes up to 40% of PBC pts may ultimately be treated w/ Ocaliva.”
In addition, the analyst believes the market will be quite easy to operate on for a several reasons. He states, “Most pts have private health insurance, which Dieterich and Harty believe will help increase access to Ocaliva.” Carr believes the market’s small size is an advantage for Intercept, stating, “Due to small pt population, they do not expect payers to implement major barriers.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Alan Carr has a yearly average return of 8.7% and a 43% success rate. Carr has an 15% average return when recommending ICPT, and is ranked #277 out of 3929 analysts.
In the past three months, nine more analysts gave ICPT a Buy rating, three gave the stock a Sell rating and two remained on the sidelines. The average of all price targets is $218.31, marking an upside of 62.91% from current levels.