Intercept Pharma: Citi downgrades, sees lower likelihood of liver drug's success

Genfit SA

12/05/2020 13:50

** Drug developer's stock  ICPT.O  down 1.6% premarket after
Citi Research downgrades it to "neutral" from "buy," citing
lower likelihood of success of co's liver disease drug
    ** ICPT's drug, obeticholic acid, for the treatment of
nonalcoholic steatohepatitis (NASH), a liver disease caused by
the buildup of fat, is being reviewed by the U.S. FDA 
    ** Rival Genfit SA  GNFT.PA  said on Monday its drug
elafibranor failed a late-stage trial in patients with NASH;
U.S. listed shares  GNFT.O  plunge ~66% premarket
    ** Citi says GNFT's failure may sound good for ICPT, but in
reality approval of rival drug would have helped drive the
diagnosis of NASH patients, which in turn would have set up the
market for ICPT's potential approval
    ** ICPT's launch is incrementally more challenging now, also
compounded by COVID-19 pandemic slowing the rate of NASH
diagnoses - brokerage
    ** Expert meeting on drug's benefits and risks in June would
likely be positive, but stock is likely to see little upside as
some investors may not stick with it due to the challenging
environment - Citi
    ** Citi also lowers stock's PT by $15 to $110; analysts'
average rating on stock is "buy," while their median PT is
$145.50 - Refinitiv data 
    ** Stock is down 27%, as of last close 
    

 (Reporting by Saumya Sibi Joseph in Bengaluru)
 ((saumya.joseph@thomsonreuters.com))