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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
Daily Contracts
2 Sep 14 11:50:00
Real-Time feed of company contracts, original agreements and executive updates from Intercept Pharmaceuticals $ICPT http://t.co/K84XvqdhHA
Market News Desk
2 Sep 14 11:25:29
$ICPT: Intercept Pharmaceuticals: Curb Your Enthusiasm? http://t.co/kM7hPg3Ryd http://t.co/5NR7PNDEDE
Investors Hangout
2 Sep 14 10:56:26
clayton: $ICPT 289.72 http://t.co/DBrhZE79EV
Investors Hangout
2 Sep 14 10:56:26
clayton: $ICPT 289.72 http://t.co/OL6u4fGpXH
dougheuring
2 Sep 14 10:28:25
Bmo $ICPT at Outperform $515 PT reflects OCA peak sales in NASH of $5 billion in 2025 with a 2H18 launch and a 70% likelihood of success.
clayton
2 Sep 14 10:26:47
$ICPT 289.72 http://t.co/Q0FGjUa8OE
lookn4wins
2 Sep 14 10:03:47
$HD 50 Simple Moving Average $HD Most recent stock chart and technical analysis. $PBYI $GTAT $EPI $WFM $ICPT $ http://t.co/y68mC9HwXv
Jim
2 Sep 14 09:44:30
RT @MelissaLeeCNBC: $ARWR $ICPT $ACHN- 3 biotech takeout targets with 100% upside in next 6 months: Deutsche Bank's Robyn Karnauskas tells …
Market News
2 Sep 14 09:25:30
$ICPT: Intercept Pharmaceuticals Posts Earnings, Pipeline in Focus http://t.co/iezxQxz8UN http://t.co/PjBNsFM38X
Tom Silver
2 Sep 14 09:23:47
Bmo $ICPT NASH Treater Feedback Suggests Larger Potential Opportunity for OCA,Based on NASH-treater feedback that at least 100K new patients
Investors Hangout
2 Sep 14 08:48:30
clayton: $ICPT 289.72 http://t.co/2IPIAeAsUC
Investors Hangout
2 Sep 14 08:48:25
clayton: $ICPT 289.72 http://t.co/RgcAhx2OCk
J
2 Sep 14 08:31:16
RT @ThinkingAlpha: Stocks w/ huge YTD impacts: $BIOF $ITMN $PEIX $SMTP $ICPT $RDNT $CBMG $PLUG $ACHN $PTX $EMES $CTP $FOLD $LIVE Discuss ht…
clayton
2 Sep 14 08:30:18
$ICPT 289.72 http://t.co/vXRCGWtpPU
Thinking Alpha
2 Sep 14 08:30:16
Stocks w/ huge YTD impacts: $BIOF $ITMN $PEIX $SMTP $ICPT $RDNT $CBMG $PLUG $ACHN $PTX $EMES $CTP $FOLD $LIVE Discuss http://t.co/OpfXXnNf0b
Market Compass
2 Sep 14 06:25:32
$ICPT: Biotech Bounce Gets More Fuel From InterMune Deal http://t.co/8Rvk14SHoq http://t.co/DVYoWznNBq
Swing Trade Alerts
2 Sep 14 06:18:28
IBD:Intercept Pharma has no product, but its valuation has topped more than $6 billion. Why? http://t.co/cbvav8i1by $ICPT $GILD $ACHN
WKRB News
2 Sep 14 06:13:30
Insider Selling: David Shapiro Sells 10,000 Shares of Intercept Pharmaceuticals Stock $ICPT http://t.co/SZIrVwirE3
Market Headlines
2 Sep 14 05:25:38
$ICPT: Intercept Pharmaceuticals: Curb Your Enthusiasm? http://t.co/T0GoKvBzxk http://t.co/5KtNj7WHPn
Samuel Brown
2 Sep 14 05:01:06
$ICPT Intercept Pharmaceuticals, Inc. Finally Releases FLINT Trial Data http://t.co/QlbLoYn8KF
Don Fishback
2 Sep 14 04:50:35
1 Month Decrease in ATM IV (Point change) $ARWR, $ICPT, $GRPN, $EXPE, $UBNT http://t.co/WAe18T8FFI
OptionApps
2 Sep 14 04:50:34
1 Month Decrease in ATM IV (Point change) $ARWR, $ICPT, $GRPN, $EXPE, $UBNT http://t.co/ewqMLYJzjG
Stock Signaling
2 Sep 14 01:01:07
Insider Buys: $PSEC $CBR $FCN $ADVS $GWR $VSAT $HRL $CNMD $OPK $HGR $AN $SPDC $UBSI $GILD $ICPT http://t.co/Vtx6dLy0Nw #stocks #wallstreet
Stock Signaling
2 Sep 14 00:01:03
Watchlist: $BAC $TSLA $BWP $AVGO $TRP $JCP $ITMN $ICPT $IVZ $IG $SCHW $BPZ $BMO $ACHN $JPM http://t.co/Vtx6dLy0Nw #analyst #investors #nyse
Stock Signaling
1 Sep 14 22:31:04
Healthcare Sector: Upgrades: $ACHN $IPXL $ENZ $ICPT $LBMH http://t.co/Vtx6dLy0Nw #trading #swingtrading #markets #stocks #spy #trader #mkt
Bulls vs Bears
1 Sep 14 21:25:29
$ICPT: Intercept to Present at Upcoming Investor Conferences http://t.co/KSrRbMWkG4 http://t.co/4dQYoPGRzK
Brad Loncar
1 Sep 14 20:53:39
@LoveSpringChick It would be more like IPF b/c NASH is a more recent phenomenon. In terms of stocks, sure $BLUE could rock like $ITNM $ICPT.
Eternity101
1 Sep 14 20:15:32
...but MY DREAM was SUR.R E A L & am sticking 2 my guns. something BIIIIG going 2 happen to THAT stock -- more than $PBYI & $ICPT did ..also
EUGENIO SOCORRO
1 Sep 14 19:48:50
Watch List: $ICPT $ARWR $NG $CCIH $DHRM
Eternity101
1 Sep 14 18:39:42
had an AWESOME dream this a.m.. NEVER in my whole life did I EVER dream about a stock. apparently I had it & it did a $PBYI $ICPT like move
Scott Spencer
1 Sep 14 16:53:09
$ICPT $GILD $ACHN $MRK $PBYI $RCPT $CELG $TEVA biotech buyout rumors intensifying... http://t.co/ErRFq9ELcz
16
1 Sep 14 16:28:19
RT @Keithwinwins: 4 #Biotech That Might Be Bought Soon http://t.co/TaEKP2uZRu #IBDNews via @IBDinvestors $ACHN $ICPT $GILD $PBYI $RCPT
Ryan York
1 Sep 14 16:26:47
RT @IBDinvestors: Intercept Pharma has no product, but its valuation has topped more than $6 billion. Why? http://t.co/Er4NemOeCB $ICPT $GI…
Financial Headlines
1 Sep 14 16:25:31
$ICPT: Roses in the Market... http://t.co/aUty04LQR2 http://t.co/E2Zz7gw78D
16
1 Sep 14 16:13:21
RT @NyOptions: Meet 4 biotech stocks that might be bought soon http://t.co/Z56GKyclxo $ACHN $GILD $PBYI $ICPT
Rex J. Weinheimer
1 Sep 14 16:10:43
RT @IBDinvestors: Intercept Pharma has no product, but its valuation has topped more than $6 billion. Why? http://t.co/Er4NemOeCB $ICPT $GI…
Ani Anirudhan
1 Sep 14 16:08:49
RT @IBDinvestors: Intercept Pharma has no product, but its valuation has topped more than $6 billion. Why? http://t.co/Er4NemOeCB $ICPT $GI…
Evener Investment
1 Sep 14 16:05:17
RT @IBDinvestors: Intercept Pharma has no product, but its valuation has topped more than $6 billion. Why? http://t.co/Er4NemOeCB $ICPT $GI…
John Michael
1 Sep 14 16:02:01
RT @IBDinvestors: Intercept Pharma has no product, but its valuation has topped more than $6 billion. Why? http://t.co/Er4NemOeCB $ICPT $GI…
Investors.com
1 Sep 14 16:00:58
Intercept Pharma has no product, but its valuation has topped more than $6 billion. Why? http://t.co/Er4NemOeCB $ICPT $GILD $ACHN
Keith Win
1 Sep 14 15:26:36
4 #Biotech That Might Be Bought Soon http://t.co/TaEKP2uZRu #IBDNews via @IBDinvestors $ACHN $ICPT $GILD $PBYI $RCPT
lottiee1012
1 Sep 14 14:41:21
RT @InsiderWire: David Shapiro, CMO and EVP - Development of Intercept Pharmac Sells $2,852,619 Worth of $ICPT - #Form4 ... - http://t.co/5…
Daytradeya
1 Sep 14 14:12:02
@IBDinvestors: Meet 4 biotech stocks that might be bought soon http://t.co/i8rdLJYfpj $ACHN $GILD $PBYI $ICPT
Krishna
1 Sep 14 11:11:32
RT @CashRocket: Fun to watch: Day Trading for $13,436 in one hour - Meir Barak http://t.co/7xPVso2bg7 via @youtube $ICPT
jatinam
1 Sep 14 10:41:13
RT @IBDinvestors: Meet 4 biotech stocks that might be bought soon http://t.co/RU7UekN50f $ACHN $GILD $PBYI $ICPT
Rick  dan
1 Sep 14 09:45:33
Bio Tech stocks are pure Bubble will fall back 60% watch out $PBYI $ICPT $ALNY $MDVN $BCRX $PTCT $ACAD $BIIB $KERX $TKMR $ALXN $ACHN $REGN
CashRocket
1 Sep 14 09:27:12
Fun to watch: Day Trading for $13,436 in one hour - Meir Barak http://t.co/7xPVso2bg7 via @youtube $ICPT
Joe Attrux
1 Sep 14 07:58:33
RT @SeekingAlpha: Insider Buys And Sells: Southern Copper, L Brands http://t.co/EiHpq3pxF0 $SCCO $REXX $PHII $OPK $CBR $LB $ICPT $APAM $WNR…
Okim59
1 Sep 14 06:21:53
RT @InsiderWire: David Shapiro, CMO and EVP - Development of Intercept Pharmac Sells $2,852,619 Worth of $ICPT - #Form4 ... - http://t.co/5…
Sleek Money
1 Sep 14 05:52:57
Intercept Pharmaceuticals CMO Unloads $2,939,300 in Stock $ICPT http://t.co/ggzMe4RQ8i
				
				
By  +Follow January 10, 2014 6:50AM
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