The broker reckons Intercept shares can climb to the dizzy heights of US$224 within the next year or so, well above the US$105 level where they currently sit.
The bullish outlook from Wedbush comes after Intercept received marketing approval from the European Commission for its primary biliary cholangitis (PBC) treatment Ocaliva today.
Similar to the Food and Drug Administration’s (FDA’s) accelerated approval for the treatment in the US, full authorisation from the EC will be based on the successful completion of the ongoing phase IV confirmatory study.
Although it was expected, today’s news is another big milestone in the company’s future, said Wedbush, given the drug’s worldwide earning potential.
“We project ex-US sales of Ocaliva to contribute modestly to revenue in 2017 as ICPT establishes reimbursement agreements on a country-by-country basis,” the broker said in a note today.
“We estimate worldwide gross peak sales for Ocaliva in PBC could reach about US$1.4BN in 2022.”
As with most European launches, it is expected that Germany and France will be the first markets for Ocaliva.
Shares in Intercept were down 3% to US$106.