Intercept made ‘smart move’ in withdrawing application, says Piper Sandler

Intercept Pharmaceuticals’ decision to withdraw its Marketing Authorization Application for obeticholic acid in nonalcoholic steatohepatitis “set off alarm bells amongst investors” but is “actually a smart move” to take advantage of the 500 additional biopsies and REVERSE data expected through early 2022, Piper Sandler analyst Yasmeen Rahimi tells investors in a research note. The analyst also believes the Street is “incorrectly jumping to conclusions and have no faith” in obeticholic acid’s approval. Ahead of the REVERSE data expected by the end of 2021, she remains bullish on Intercept and reiterates an Overweight rating on the name with an $82 price target. The MAA withdrawal was due to conflicting deadlines and does not reflect the efficacy of the drug in NASH, contends Rahimi. Intercept in premarket trading is down 4% to $16.38.