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Goldman Sachs analyst Salveen Richter downgraded Intercept Pharmaceuticals (ICPT) to Sell from Neutral with a price target of $10, down from $17, implying a 30% downside.

While Ocaliva is approved in primary biliary cholingitis, recent label updates with contraindications "pressure the commercial opportunity," Richter tells investors in a research note. Further, the analyst is monitoring the regulatory path for Ocaliva in nonalcoholic steatohepatitis, Intercept's "key revenue driver," following a complete response letter.

Richter remains cautious saying the new analysis of an expanded safety database might differ from the original Phase 3 REGENERATE data. It remains unclear whether this will satisfy the FDA's requirements for approval, contends the analyst.