Maksim Labkouski
Intercept Pharmaceuticals (NASDAQ:ICPT) has been downgraded to hold by Canaccord Genuity in the wake of news that the biotech group has agreed to be acquired by Alfasigma for $19 per share in cash.
Canaccord said in a note that it believes the deal is the “best possible outcome” for Intercept, as obeticholic is no longer being pursued as a treatment for NASH and its drug Oclavia potentially facing “stiff competition in the not-too-distant future.”
Calling the deal a “win-win” for the company and investors, Canaccord said the $19 per share price was just slightly below its 12-month price target of $20. As a result, it was reducing its rating to hold, with a price target of $19.