Intercept Pharmaceuticals has recently agreed to be acquired by Alfasigma for $19 per share in cash. Following this news, Canaccord Genuity downgraded Intercept to hold and stated that the deal is the “best possible outcome” for the biotech company. Canaccord believes that this acquisition is advantageous for Intercept, as its drug Oclavia may face fierce competition soon and obeticholic is no longer being pursued as a treatment for NASH.
Canaccord Genuity views the acquisition as a “win-win” situation for both Intercept and its investors. Although the $19 per share price is slightly below Canaccord’s 12-month price target of $20, the firm still considers it a favorable outcome. Consequently, Canaccord downgraded Intercept to a hold rating and revised its price target to match the acquisition price.
Overall, the acquisition by Alfasigma presents an optimistic outlook for Intercept Pharmaceuticals, particularly considering the challenges it may face in the near future in terms of competition and treatment options.