UPDATE: H.C. Wainwright Downgrades Intercept Pharmaceuticals (ICPT) to Sell
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H.C. Wainwright analyst Ed Arce downgraded Intercept Pharmaceuticals (NASDAQ: ICPT) from Neutral to Sell, PT $25.00.
The analyst comments "In short, we no longer believe a viable regulatory path for OCA exists in NASH. In addition, we do not expect the REVERSE study readout in cirrhotic NASH patients due by YE21 to be positive. Furthermore, we believe the Street has not fully recognized the competitive threat on the horizon to Ocaliva's PBC franchise from CymaBay's (CBAY; Buy) seladelpar and GENFIT's (GNFT; Neutral) elafibranor, both of which we believe possess a much stronger efficacy and safety clinical profile. Lastly, against that backdrop, we are concerned with Intercept's still high expense structure (we estimate 2020 GAAP operating expense of about $540M) and aggregate outstanding principal amount of $690M in convertible notes, most of which is due in 2023. These reasons, combined with what we view as frustratingly poor disclosures by management, lead us to downgrade the shares of ICPT to Sell, from Neutral previously, with a $25 price target."
Shares of Intercept Pharmaceuticals closed at $29.86 yesterday.
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