Needham Reiterates Buy on Intercept Pharmaceuticals Inc Following 3Q15 Update
Needham’s healthcare analyst Alan Carr reiterated a Buy rating on shares of the liver disease company Intercept Pharmaceuticals Inc (NASDAQ:ICPT), with a price target of $500, after the company provided a third-quarter corporate update yesterday morning. Carr is one of Intercept’s biggest bulls, and he is also one of the top analysts rated who cover the stock.
Carr wrote, “Non-GAAP 2015 OpEx guidance was lowered from previous guidance of $240M. Spend was lower than expected in 3Q15. Commercial infrastructure for U.S. PBC launch is in place (45 sales reps). Additionally, 10 regional/ country managers have been hired across 17 European countries. Disease awareness efforts are also underway WW. Details around launch are expected at Analyst/ Investor event on 12/1/15.”
“Key upcoming milestones include the Obeticholic Acid (OCA) FDA review decision in Primary Biliary Cirrhosis (PBC; PDUFA 2/29/16). We assume approval and launch immediately thereafter. An AdCom mtg is likely according to mgmt. Intercept initiated the Phase 3 REGENERATE trial in NASH in Sept 2015. Although limited data available from the Japan Phase 2 NASH trial are consistent w/an active drug, we expect debate around OCA impact on fibrosis to continue until interim results from REGENERATE are available (2018E),” the analyst continued.
Bottom line: “We reiterate BUY, with expectations for upside in 2016 around OCA launch in PBC and potentially clinical trial data in other indications.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Alan Carr has a total average return of 29.2% and a 66.0% success rate. Carr has a 47.6% average return when recommending ICPT, and is ranked #6 out of 3832 analysts.
Out of the 17 analysts polled by TipRanks, 13 rate Intercept Pharmaceuticals stock a Buy, 2 rate the stock a Hold and 2 recommend a Sell. With a return potential of 93%, the stock’s consensus target price stands at $395.82.