HomeMarket NewsCanaccord cuts Intercept to hold, calls Alfasigma deal "best possible outcome"

Canaccord cuts Intercept to hold, calls Alfasigma deal "best possible outcome"

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Canaccord Downgrades Intercept Pharmaceuticals to Hold, Approves Alfasigma Acquisition as β€œBest Possible Outcome”

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Maksim Labkouski

Canaccord Genuity has downgraded Intercept Pharmaceuticals (NASDAQ:ICPT) to a hold rating following the announcement of the company’s acquisition by Alfasigma for $19 per share in cash.

In a note, Canaccord stated that this deal represents the β€œbest possible outcome” for Intercept. The acquisition comes as the company shifts away from pursuing obeticholic as a treatment for nonalcoholic steatohepatitis (NASH) and anticipates fierce competition for its drug Oclavia in the near future.

Describing the acquisition as a β€œwin-win” for both Intercept and investors, Canaccord acknowledged that the $19 per share price is just slightly below its 12-month price target of $20. As a result, Canaccord has adjusted its rating to hold, with a revised price target of $19.

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