Intercept Pharmaceuticals, a biotech group listed on NASDAQ, has been downgraded to a hold rating by Canaccord Genuity after it agreed to be acquired by Alfasigma for $19 per share in cash. Canaccord believes this deal is the best possible outcome for Intercept, as its drug obeticholic is no longer being pursued as a treatment for NASH and its drug Oclavia may face significant competition in the near future. Canaccord sees the acquisition as a win-win situation for both Intercept and its investors, stating that the agreed price of $19 per share is just slightly below its own 12-month price target of $20. As a result, Canaccord has adjusted its rating to hold and set a price target of $19.
The downgrade comes as Intercept Pharmaceuticals made the decision to be acquired by Alfasigma for $19 per share in cash. This move was made amidst the changing landscape for Intercept’s drugs, with its obeticholic no longer being pursued as a treatment for NASH and the potential competition that its drug Oclavia may face in the near future. Canaccord Genuity, in a note, stated that this acquisition represents a win-win situation for both Intercept and its investors. Although the $19 per share price is slightly below Canaccord’s 12-month target, the firm still sees this deal as favorable and has adjusted its rating to hold with a new price target of $19.
With the news of Intercept Pharmaceuticals being acquired by Alfasigma, Canaccord Genuity downgraded the biotech group to a hold rating. Canaccord believes that this acquisition is the best possible outcome for Intercept, given the challenges the company faces with obeticholic no longer being pursued as a treatment for NASH and the potential tough competition that its drug Oclavia may confront in the near future. Although the $19 per share price agreed upon in the acquisition is slightly below Canaccord’s 12-month price target of $20, the firm still considers it a win-win situation for both Intercept and its investors. Consequently, Canaccord has adjusted its rating to hold and set a new price target of $19.