Intercept downgraded to Sell from Neutral at Goldman Sachs - InvestingChannel

Intercept downgraded to Sell from Neutral at Goldman Sachs

Goldman Sachs analyst Salveen Richter downgraded Intercept Pharmaceuticals to Sell from Neutral with a price target of $10, down from $17, implying 30% downside. While Ocaliva is approved in primary billiary cholingitis, recent label updates with contraindications “pressure the commercial opportunity,” Richter tells investors in a research note. Further, the analyst is monitoring the regulatory path for Ocaliva in nonalcoholic steatohepatitis, Intercept’s “key revenue driver,” following complete response letter. Richter remains cautious saying the new analysis of an expanded safety database might differ from the original Phase 3 REGENERATE data. It remains unclear whether this will satisfy the FDA’s requirements for approval, contends the analyst.