RBC trims PT on Intercept as NASH drug development 'likely to wind down', shares fall

Intercept Pharmaceuticals

15/06/2023 15:03

** Shares of Intercept Pharmaceuticals Inc  ICPT.O  fall
2.66% to $11.72
    ** Intercept is "likely to wind down" all development of
treatment options for non-alcoholic steatohepatitis (NASH), says
RBC Capital Market      
    ** NASH is a serious progressive liver disease in people who
drink little to no alcohol but have excessive fat accumulation
that starts causing inflammation and cell damage in the organ
    ** Brokerage expects the U.S. health regulator to decline
approval for its experimental NASH drug, obeticholic acid, after
panel of advisers to the U.S. FDA  had recommended holding off
the accelerated approval of the oral drug
    ** The FDA staff reviewers had earlier flagged increased
risk of diabetes and liver injury from using the oral tablets
    ** RBC cuts its PT on the stock by $3 to $14 which
represents a 16% upside to the stock's last close and $2.50 less
than the median PT of the 16 analysts covering the stock
    ** RBC continues to rate the stock "sector perform"  
    ** Including session moves, stock down ~5% YTD

 (Reporting by Mariam Sunny in Bengaluru)
 ((Mariam.ESunny@thomsonreuters.com;))