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Intercept Pharmaceuticals (ICPT) Continues to Soar

By  +Follow January 10, 2014 6:50AM
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Shares in biopharmaceutical company Intercept Pharmaceuticals (ICPT) spiked over 70 percent Friday before pulling pack to gains of around 60 percent, one day after shares soared more than 280 percent. Thursday brought news that the company’s lead drug candidate obeticholic acid (OCA) had proven so effective in treating patients with nonalcoholic steatohepatitis (better known as fatty liver disease) that Intercept’s FLINT trial was halted early because it had already met its primary efficacy endpoint.

Friday’s new spike appears to have been driven by a raft of new analysts upgrades, many of which involved increasing price targets by more than $200 a share. This new surge in buying saw volume well over ten times the previous daily average and exceeding 25 percent of the stock’s total float.

All told, Intercept is up over 550 percent in the last two days alone, boosting the 45-person company’s market cap by about $7.5 billion in 48 hours.

Analysts Show the Love

Among those analysts who made dramatic increase in their price targets for Intercept were Citigroup, which went from $60 to $400, Oppenheimer, which went from $94 to $360, and Needham, who went from $55 to $320.

Merrill Lynch, though, took the cake, boosting their target from $81 to $872.

Driving this newfound optimism for Intercept’s future is the size of the market involved. Fatty liver disease is an increasingly common problem that currently lacks a strong treatment, so the first firms to present a commercially available drug stand to profit considerably.

Citigroup’s Jonathan Eckard and Yaron Werber explained their massive upgrade:

“It is estimated ~10-15 percent of the US population has some level of early stages of NASH (inflammation and fibrosis of the liver) and ~6 million (in the US alone) of these have a more advanced form of NASH preceding liver cirrhosis. NASH is becoming recognized as a leading cause of liver transplants in the western world. There are no approved drugs for treatment, and OCA is the first agent to show a benefit here and is now positioned to establish itself as the standard of care. Also liver fibrosis has long been a target for large pharma/biotech and the scarcity of other drugs makes [Intercept Pharmaceuticals] an attractive acquisition target…

“We are buyers of [Intercept Pharmaceuticals], and see value left on the table despite yesterday’s ~300 percent gain on positive NASH…data for lead agent obeticholic acid (OCA). In our view [Intercept Pharmaceuticals'] ~$5.4 billion market cap doesn’t reflect the multi-billion dollar NASH opportunity. A “back of the envelope” valuation applying a common biotech of 4x sales multiple projects <$1.5 billion in OCA sales. We believe this meaningfully underestimates the drug’s potential that we expect could top >$5 billion/yr.”

GALT, CNAT Lifted With Rising Tide

The huge two-day run for Intercept has also boosted the fortunes for other companies working on similar treatments for liver disease.

Galectin Therapeutics (GALT) has seen shares nearly double in value over the last two days, and Conatus Pharmaceuticals (CNAT) has shot up over 130 percent over the same time period.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for icpt
Stock Signaling
29 Aug 14 09:31:03
Visual Stock Comparison Tool: http://t.co/Vtx6dLy0Nw : $SPLK $SLCA $AEO $AEGR $YGE $ARO $ECOM $ICPT $ARWR $ITMN $FOLD $TSLA $QIHU $X $JRJC
Amy Reeves
29 Aug 14 09:02:43
Something to debate over the weekend: which biotech will be bought next? http://t.co/Lsrpceh0Ln $ACHN $ICPT $PBYI $RCPT $ITMN $GILD
Lucretia
29 Aug 14 09:00:38
$ICPT Intercept Pharmaceuticals, Inc. Finally Releases FLINT Trial Data http://t.co/pvr9hpNhTK
stockassassin
29 Aug 14 07:46:16
nice bio day for my port $MDVN $AMGN $REGN $ICPT $NPSP $ARWR $ECYT $BLUE $KITE $BMRN
Stock Market News
29 Aug 14 07:25:34
$ICPT: [video] Stock Pops & Drops: ICPT, TSL, NUAN, RAX http://t.co/iCTP5ryA2A http://t.co/x5kb19yXZS
CumbucoTrader
29 Aug 14 06:38:43
currently long $TSLA $ARWR, short $AEO, watching $ICPT
TalkMarkets
29 Aug 14 06:38:01
Morning Call $BIG $CWST $MBT $SSYS $STRI $ICPT $BKW $OVTI $AVGO $FRED http://t.co/2VKkNa6rNf
Stock Signaling
29 Aug 14 06:31:21
Upgraded Stocks Active in Pre-Market: $TSLA $GOLD $ACHN $ITMN $ICPT $ARUN $QUNR $TFM $AINV $ANAC $FB $GRPN $CSIQ $AMAT $SQNM #spy #trading
Robin Murray MD CFII
29 Aug 14 05:43:41
EXCELLENT #profit this month on our #Biotech picks $BIB #ULTRA #ETF $ITMN $ICPT $AGN $CELG continue to trim&trail. http://t.co/tJtk0LBsqN
Irma Doucet
29 Aug 14 05:31:13
$ICPT Intercept Pharmaceuticals, Inc. Finally Releases FLINT Trial Data http://t.co/riCq2qRPW4
Don Fishback
29 Aug 14 04:50:04
1 Month Decrease in ATM IV (Point change) $ICPT, $WTW, $GRPN, $ZU, $UBNT http://t.co/YrumYcK17U
OptionApps
29 Aug 14 04:50:04
1 Month Decrease in ATM IV (Point change) $ICPT, $WTW, $GRPN, $ZU, $UBNT http://t.co/sISuJVlOpu
Financial Headlines
28 Aug 14 23:25:31
$ICPT: Intercept to Present at Upcoming Investor Conferences http://t.co/QwB4cyd8Tz http://t.co/Wcq0Glrf8Z
Lrry Keho
28 Aug 14 23:08:43
" We Are in a Period of Enlightenment http://t.co/UoF80DfdRk via @The_Real_Fly $GILD $ACHN $ICPT $HCLP $PLUG""
Stock Signaling
28 Aug 14 22:31:13
Healthcare Sector: Upgrades: $LCI $OCLS $THC $ITMN $ELGX $ICPT $ENZ $IPXL $ACHN $HNSN $ZFGN $UTHR $POZN $ILMN $ENZN http://t.co/Vtx6dLy0Nw
howardlindzon
28 Aug 14 17:11:50
RT @StockTwits: GREAT read--> We Are in a Period of Enlightenment http://t.co/ZiAzUsnFvk via @The_Real_Fly $GILD $ACHN $ICPT $HCLP $PLUG
Stock Signaling
28 Aug 14 15:31:31
Upgraded Stocks Active After Hours: $DSW $LCI $JPM $PGR $AFSI $BMO $ARUN $ICPT $ACHN $MBI $SPLK $ARE $SFM $TFM $QUNR http://t.co/Vtx6dLy0Nw
Scott Thomas
28 Aug 14 15:28:30
Now I see news $ICPT HF cuts position . Orbimed .
FilingsAnalysis
28 Aug 14 15:25:04
$ICPT, 13D filed by Orbimed Advisors LLC http://t.co/1dOmjQENa3
Tim
28 Aug 14 15:23:10
RT @stockstobuy: BioFuel Energy $BIOF is the Top Stock in 2014, Up 620% - http://t.co/2J9lDWjrzq #Stocks $VRS $ISR $PEIX $UBIC $ICPT $RDNT …
Stocks to Buy
28 Aug 14 15:19:42
BioFuel Energy $BIOF is the Top Stock in 2014, Up 620% - http://t.co/2J9lDWjrzq #Stocks $VRS $ISR $PEIX $UBIC $ICPT $RDNT $PLUG $ACHN
Forex Spain
28 Aug 14 15:08:23
RT @StockTwits: GREAT read--> We Are in a Period of Enlightenment http://t.co/ZiAzUsnFvk via @The_Real_Fly $GILD $ACHN $ICPT $HCLP $PLUG
EscueladeTrading
28 Aug 14 15:04:42
RT @StockTwits: GREAT read--> We Are in a Period of Enlightenment http://t.co/ZiAzUsnFvk via @The_Real_Fly $GILD $ACHN $ICPT $HCLP $PLUG
Alberto Fernández
28 Aug 14 15:04:36
RT @StockTwits: GREAT read--> We Are in a Period of Enlightenment http://t.co/ZiAzUsnFvk via @The_Real_Fly $GILD $ACHN $ICPT $HCLP $PLUG
YouAreTrader
28 Aug 14 15:03:43
RT @StockTwits: GREAT read--> We Are in a Period of Enlightenment http://t.co/ZiAzUsnFvk via @The_Real_Fly $GILD $ACHN $ICPT $HCLP $PLUG
Market Profile
28 Aug 14 15:01:58
RT @StockTwits: GREAT read--> We Are in a Period of Enlightenment http://t.co/ZiAzUsnFvk via @The_Real_Fly $GILD $ACHN $ICPT $HCLP $PLUG
Catalyst Trader
28 Aug 14 14:57:25
RT @whalewisdom: New SC 13D/A from ORBIMED ADVISORS LLC concerning $ICPT. See details at http://t.co/yxxJGlKF7h
Business Headlines
28 Aug 14 14:25:30
$ICPT: Roses in the Market... http://t.co/bybpVWSVUs http://t.co/H75iJkuNyX
StockNews
28 Aug 14 13:55:23
$ICPT - Amended Statement of Beneficial Ownership (sc 13d/a) http://t.co/H12pjTHAc8
whalewisdom
28 Aug 14 13:55:10
New SC 13D/A from ORBIMED ADVISORS LLC concerning $ICPT. See details at http://t.co/yxxJGlKF7h
InsiderTradingWire
28 Aug 14 13:55:08
13D Alert for INTERCEPT PHARMACEUTICALS INC - $ICPT - #13D #insidertrading - http://t.co/S2gMDnOXXX
StockTwits
28 Aug 14 13:40:09
GREAT read--> We Are in a Period of Enlightenment http://t.co/ZiAzUsnFvk via @The_Real_Fly $GILD $ACHN $ICPT $HCLP $PLUG
Antonio Costa
28 Aug 14 12:56:57
$ICPT new intraday low ... watch $PBYI and $MDVN
Sleek Money
28 Aug 14 11:26:15
Intercept Pharmaceuticals Director Unloads $33,161,559 in Stock $ICPT http://t.co/9DxqxyvjYW
WKRB News
28 Aug 14 11:23:41
Insider Selling: Intercept Pharmaceuticals Director Unloads 50,000 Shares of Stock $ICPT http://t.co/p0P3PpBXjp
Business Headlines
28 Aug 14 10:25:32
$ICPT: 3 Biotechs Surging Following InterMune Takeover http://t.co/Zjhz94CI3X http://t.co/1IUhgHfQpq
Wall Street Monitor
28 Aug 14 09:25:44
$ICPT: Biotech Bounce Gets More Fuel From InterMune Deal http://t.co/0RRVM9jpwZ http://t.co/HaxAGKkHvX
Alan Sparks
28 Aug 14 09:00:30
all the insider sells on $ICPT hardly bodes well for a buy out any time soon
US_proptrader
28 Aug 14 08:56:29
$ICPT going for $300
MOHAMMAD ALZAHRANI
28 Aug 14 08:53:35
@bo3bo32 $ICPT 100%
JMK
28 Aug 14 07:01:15
$ICPT glad i sold sep 5 260 call when we were over 302 the other day. Up next: sep 20 255.That one doesn't get sold before sep conferences
Stock Signaling
28 Aug 14 06:31:28
Upgraded Stocks Active in Pre-Market: $GOLD $ACHN $ITMN $ICPT $ARUN $QUNR $TFM $AINV $ANAC $FB $GRPN $CSIQ $AMAT $SQNM $CREE #spy #mkt #dow
Business News
28 Aug 14 06:25:31
$ICPT: Intercept Pharmaceuticals: Curb Your Enthusiasm? http://t.co/CfwpXbYD5Z http://t.co/DPVR5yr0vr
S Manian
28 Aug 14 06:09:45
@Dream_23_Team @arshavin_k not this kinda game changer data $pbyi $icpt
Luis Gutierrez
28 Aug 14 06:00:23
What if $GILD with its valuable stock as currency goes and buy $ICPT Intercept Pharma. Would be Liver Powerhouse
Seeking Alpha
28 Aug 14 06:00:05
Gilead: Let's Make A Deal http://t.co/1btE9qXuzo $ALNY $ICPT $INCY $REGN $GILD
Seeking Alpha
28 Aug 14 05:45:34
Gilead: Let's Make A Deal http://t.co/prpX9aKEdr $ALNY $ICPT $INCY $REGN $GILD
Don Fishback
28 Aug 14 04:49:56
1 Month Decrease in ATM IV (Point change) $ARWR, $ICPT, $MNKD, $AEGR, $GRPN http://t.co/7ONd2Az1py
OptionApps
28 Aug 14 04:49:55
1 Month Decrease in ATM IV (Point change) $ARWR, $ICPT, $MNKD, $AEGR, $GRPN http://t.co/7TbsKU0I07
NathanAaron
28 Aug 14 04:48:12
$icpt insiders unloading shares....
				
				
By  +Follow January 10, 2014 6:50AM
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