Intercept Pharmaceuticals (ICPT) Buy Rating Reiterated at Summer Street

Summer Street reiterated a Buy rating on Intercept Pharmaceuticals (NASDAQ: ICPT) with a price target of $650. Shares weakened Tuesday on news competitor Phenex Pharmaceuticals’ (Private) FXR was acquired by Gilead.

Commenting on developments, analyst Jim Molloy said, "We see the recent acquisition of Phenex Pharmaceuticals' FXR agonist program for NASH by Gilead as an important “shot across the bow” for companies in the NASH space in general and for ICPT in particular."

"We believe this shows the growing recognition of the size of the NASH opportunity, and we expect that M&A will continue to be a significant factor in the NASH space in 2015. ICPT remains the clear leader in the NASH space, in our opinion, with OCA expected to enter phase III trials in 1H15 with a potential interim analysis by early 2016. Both Phenex and ICPT target the FXR agonist — although with slightly different bile acid analogues. Given the similarity in pathways for targeting the FXR agonist, we believe the GILD acquisition validates ICPT’s FXR target for NASH. The relatively low price GILD paid to Phenex speaks to how early in development — and how far behind ICPT — Phenex’s FXR agonist currently is. We continue to like ICPT, which we see as the lead horse in the NASH race, and we reiterate our BUY rating and $650 price target," he added.

For an analyst ratings summary and ratings history on Intercept Pharmaceuticals click here. For more ratings news on Intercept Pharmaceuticals click here.

Shares of Intercept Pharmaceuticals closed at $160.01 yesterday.

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