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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
Venator
18 Sep 14 12:22:51
$ICPT Hey look at the trolls coming out of the woodwork! hi guys
avidresearch
18 Sep 14 12:03:37
$ICPT almost filled the gap from the FLINT Topline results
Large Void Bot
18 Sep 14 12:00:26
Popular: $AOL, $BTU, $CODE, $RIG, $ICPT, $TRP, $WLL, $COST, $TLM
Venator
18 Sep 14 10:30:20
$ICPT whoops forgot to add graph. http://t.co/59mdkJ06f9
Venator
18 Sep 14 10:27:40
$ICPT Maximum Pain for maturity Saturday is $ 272.5. Thx, http://t.co/LjdkJ5WjCh
Eternity101
18 Sep 14 10:06:22
$BLUE .. this one keeps going higher - NOT under many radar screens ..feel it will be a $ICPT - $PBYI type of move one of these days
1 TRADER
18 Sep 14 09:24:51
buying sm LT #swing in $ICPT 269 . will accumulate
Venator
18 Sep 14 09:17:36
$ICPT So hopefully BofA will have good things to report... tho I cant imagine them upping their PT ($872 in Jan, groan!)
Venator
18 Sep 14 09:15:22
FYI re BofA MerLy Conf: Dr. R.McMinn-- $ICPT Dir ofStrategy--prior job was director at BofAML & lead research analyst, covering biotech.
Venator
18 Sep 14 08:40:26
$ICPT Sorry, I dont have anything good to say today. Have all the concerns that you guys have been raising.
Ticker Report
18 Sep 14 08:31:10
Insider Selling: Intercept Pharmaceuticals CMO Unloads 4,000 Shares of Stock $ICPT http://t.co/mIiU9meIWK
Venator
18 Sep 14 07:22:15
$ICPT @Will Aye, miniscule volume. Seems that Dr.P spoke about 5 hours ago @ BofAMerrill HealthConf in London - per @WallSt000 's link .
Stock Signaling
18 Sep 14 06:31:16
Upgraded Stocks Active in Pre-Market: $ARCB $BLDP $VECO $VNET $AVNR $CNVR $JDSU $NDLS $FEYE $CSIQ $INFN $ICPT $VRTX $SNDK $INFI #analyst
InsiderTradingWire
18 Sep 14 04:00:44
David Shapiro, CMO and EVP - Development of Intercept Pharmac Sells $1,083,151 Worth of $ICPT - #Form4 ... - http://t.co/NaGCisq2gC
Sleek Money
17 Sep 14 21:23:17
Intercept Pharmaceuticals CMO Unloads $1,124,760 in Stock $ICPT http://t.co/I4tVGcOwwq
chartguy89
17 Sep 14 21:08:31
ICPT 270.97 Stock Charts $ICPT Intercept Pharmaceuticals Inc. (NASDAQ) Last Updated: 09/17/2014 23:08:38 ICPT http://t.co/KFoYVkXZPF
InterCooler
17 Sep 14 20:51:11
Insider Selling: David Shapiro Sells 4,000 Shares of Intercept Pharmaceuticals Stock $ICPT http://t.co/jraRUyEZCp
US Banking News
17 Sep 14 20:50:15
Insider Selling: David Shapiro Sells 4,000 Shares of Intercept Pharmaceuticals Stock $ICPT http://t.co/ugMvf702B0
Lombard Capital
17 Sep 14 13:01:22
@Sport234a Expecting a volatile move from detailed presentation? What's it's competition that should worry $ICPT for AASLD. Like to hear you
Bleecker
17 Sep 14 10:51:00
@adamfeuerstein i'd like to have, as Europ. Investor, Ur US point of view about $GNFT as $ICPT competitor on #NASH (#GFT505 vs #OCA). Tks!
Yu Zhu
17 Sep 14 10:06:52
RT @Emory_R: New BAKER BROS. ADVISORS 13F Sold: $ICPT $RTRX $AUXL $FURX New: $SLXP $CPRX $MGNX $ARWR $BCRX Increase: $VSAR $FMI http://t.co…
Harry Walkman
17 Sep 14 08:31:30
$ICPT Intercept Pharmaceuticals Given Consensus Recommendation of &quot;Buy&quot; by ... http://t.co/cN3ScAleQE
Venator
17 Sep 14 07:49:30
@Will Agree - has the thrills and chills of a roller coaster ride. or a love affair with a drama queen/king? lol $ICPT
chartguy89
17 Sep 14 07:37:53
ICPT 270.97 Stock Charts $ICPT Intercept Pharmaceuticals Inc. (NASDAQ) Last Updated: 09/17/2014 09:37:59 ICPT http://t.co/SzQXPTkXY2
Stock Signaling
17 Sep 14 06:31:16
Upgraded Stocks Active in Pre-Market: $BLDP $VECO $AVNR $CNVR $JDSU $NDLS $FEYE $CSIQ $INFN $ICPT $VRTX $SNDK $INFI $TASR $BDBD #nasdaq
RemiDm
17 Sep 14 05:37:34
RT @R4inb0w_: Kepler Cheuvreux Biotech Roundtable: "Will a French biotech enter the Blockbuster Select Club?" JF Mouney CEO of #GENFIT talk…
Carine
17 Sep 14 04:48:47
RT @R4inb0w_: Kepler Cheuvreux Biotech Roundtable: "Will a French biotech enter the Blockbuster Select Club?" JF Mouney CEO of #GENFIT talk…
R4inb0w
17 Sep 14 04:42:25
Kepler Cheuvreux Biotech Roundtable: "Will a French biotech enter the Blockbuster Select Club?" JF Mouney CEO of #GENFIT talking #NASH $ICPT
Paul Loffarelli
16 Sep 14 17:41:47
Intercept Pharmaceuticals $ICPT leading the last 100 IPOs with 1689.40% return.
Carine
16 Sep 14 14:29:48
RT @R4inb0w_: $GNFT "Genfit Considers Several Surrogate Endpoints for NASH Drug" News by Makiko Kitamura (Bloomberg) #NASH $ICPT http://t.c…
Cisc@
16 Sep 14 11:10:59
RT @R4inb0w_: $GNFT "Genfit Considers Several Surrogate Endpoints for NASH Drug" News by Makiko Kitamura (Bloomberg) #NASH $ICPT http://t.c…
Daniel De Oliveira
16 Sep 14 11:09:33
RT @R4inb0w_: $GNFT "Genfit Considers Several Surrogate Endpoints for NASH Drug" News by Makiko Kitamura (Bloomberg) #NASH $ICPT http://t.c…
Tounet ®
16 Sep 14 11:05:49
RT @R4inb0w_: $GNFT "Genfit Considers Several Surrogate Endpoints for NASH Drug" News by Makiko Kitamura (Bloomberg) #NASH $ICPT http://t.c…
R4inb0w
16 Sep 14 11:03:14
$GNFT "Genfit Considers Several Surrogate Endpoints for NASH Drug" News by Makiko Kitamura (Bloomberg) #NASH $ICPT http://t.co/7TJNWbpImq
ymscapital
16 Sep 14 09:29:29
@bradloncar What is a better $blue or $icpt?
Jared Quereau
16 Sep 14 08:52:37
$ICPT trades 200 day mvg. avg., picked up some calls for January.
BioAlert
16 Sep 14 08:36:29
@SeekingAlpha well $CNAT could be next $ICPT ?
fezziwig2008
16 Sep 14 08:23:47
$ICPT jumped 8x PPS of 1 month prior on Ph2 Halt for Efficacy - $HALO PegpH20 has 43 centers open in Ph2 study with over 100 pts so far
Eternity101
16 Sep 14 08:12:12
$BLUE .. watch this one .. don't know ..but methinks this one can have a $PBYI & $ICPT type of movement moment this year ?
DOGE4321
16 Sep 14 06:41:43
RT @SeekingAlpha: Is Intercept Pharmaceuticals Building The Next Great Specialty Franchise? http://t.co/icB6pGUU3E $ALXN $CNAT $GILD $ICPT
DOGE4321
16 Sep 14 06:41:34
RT @svKatface: New SA piece: Is $ICPT Building The Next Great Specialty Franchise? http://t.co/6JWzar8elu
Stock Signaling
16 Sep 14 06:31:12
Upgraded Stocks Active in Pre-Market: $VNET $AVNR $CNVR $JDSU $NDLS $FEYE $CSIQ $INFN $ICPT $VRTX $SNDK $INFI $TASR $BDBD $GRPN #stock #spy
Stephen Simpson
15 Sep 14 16:58:52
Kratisto Investing: Seeking Alpha: Is Intercept Pharmaceuticals Buildi... http://t.co/UjSkH6gO0a $ICPT
magptrader
15 Sep 14 16:43:31
Weak trading action with lots of momentum stocks $TSLA, $ICPT, $LNKD, $VIPS, $JAZZ, $WDAY, $YELP and the likes in negative on increasing vol
fezziwig2008
15 Sep 14 15:40:02
Look at $ISIS & $ICPT - both sharply down - what happened today was "risk off" in Nasdaq & $HALO had bad timing of approval -not bad news
Venator
15 Sep 14 12:53:37
$ICPT bought some at 267.58 didnt know whether that one would hit. Should bring nice profit!
Daily Contracts
15 Sep 14 12:51:01
Real-Time feed of company contracts, original agreements and executive updates from Intercept Pharmaceuticals $ICPT http://t.co/K84XvqdhHA
Todd Callaway
15 Sep 14 12:39:23
Buzz Saw Monday: $TSLA -9% $LNKD -7% $MBLY -7% $AMBA -6% $TWTR -5% $ICPT -6% $DDD -5% $LOCO -4% $FB -4% @TheDomino
Venator
15 Sep 14 12:38:40
New SA piece: Is $ICPT Building The Next Great Specialty Franchise? http://t.co/6JWzar8elu
FOREX Insight
15 Sep 14 11:36:12
RT @SeekingAlpha: Is Intercept Pharmaceuticals Building The Next Great Specialty Franchise? http://t.co/icB6pGUU3E $ALXN $CNAT $GILD $ICPT
				
				
By  +Follow January 10, 2014 6:50AM
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