Galmed, Intercept, Viking, Madrigal initiated at B. Riley FBR

B. Riley FBR rolls out coverage on NASH players with three Buy ratings. B. Riley FBR analyst Mayank Mamtani last night initiated coverage of four companies working on developing drugs to treat nonalcoholic steatohepatitis. The analyst started Galmed Pharmaceuticals (GLMD) with a Buy rating and $28 price target, Intercept Pharmaceuticals (ICPT) with a Buy rating and $155 price target, Viking Therapeutics (VKTX) with a Buy rating and $16 price target, and Madrigal Pharmaceuticals (MDGL) with a Neutral rating and $124 price target. NASH disease burden is “poised to create the next liver transplant crisis” and is drawing significant investments from the biotech industry, Mamtani writes in a research note. He points out that Intercept’s obeticholic acid is the only NASH drug to have the FDA’s breakthrough therapy designation for strong anti-fibrotic efficacy and be previously approved by the FDA, for an orphan liver indication. His proprietary safety analysis suggests the Street should gain comfort in drug’s cardiovascular profile going into pivotal readout in Q2 of 2019. Mamtani believes Viking’s lead drug, VK2809, has an “excellent” safety and tolerability profile that assuages concerns of any off-target effects. Further, his comparator analysis suggests efficacy in high-dose of Galmed’s Aramchol drug “represents a compelling clinical profile on both regulatory acceptable endpoints.”

https://thefly.com/landingPageNews.php?id=2836029