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Intercept Pharmaceuticals (ICPT) Sees Pullback from Record Gains

By  +Follow January 14, 2014 12:05PM
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Intercept Pharmaceuticals (ICPT) continued its wild, roller-coaster ride on Tuesday, with a second-straight day of major losses. Intercept made news last week after its treatment for fatty liver disease, obeticholic acid (OCA), had a Phase II clinical trial halted early because of its efficacy. Shares spiked, then jumped again on the second day after the stock received a raft of massive upgrades from major analysts.

However, this week appears to have seen Intercept return to earth. Shares dropped nearly 20 percent on Monday, and Tuesday saw losses in excess of 30 percent, making the two-day loss nearly 45 percent of its share value. That still has Intercept sporting a five-day gain approaching 450 percent, so investors are hardly sweating recent losses, but it does have the stock returning from the rarified air it reached by the close of markets on Friday.

ICPT Sheds Value on CEO Comments

The plummet for Intercept could be attributed to comments from CEO Mark Pruzanski that his company will most likely need to partner with a larger company to bring OCA to market; a deal that would most likely eat into any potential profits.

“[Intercept’s plan] is very much to build a commercial capability,” the he said in a phone interview with Bloomberg. “But large pharmaceutical companies are very good at this kind of thing. And the overarching responsibility here is to do what we can in a responsible way to get” OCA to patients if it’s approved.

“If that can be done in a more expedited fashion with a partner, that’s something we should consider,” he continued.

However, while these comments from Monday are clearly a factor, profit-taking by traders satisfied with last week’s massive gains and anticipating a market pull-back is probably a contributing factor as well as share-volume continued at very high levels.

Concerns Over Cholesterol Levels in OCA Patients Also a Factor

The revelation that the study showed rising cholesterol levels for the patients taking OCA as compared to those on a placebo could also be weighing on Intercept’s stock. The details of the study were included in a Sunday press release from Intercept.

"OCA is an FXR agonist and we have known for a long time that it is involved in many aspects of lipid metabolism," said Pruzanski in the release. "An important part of the rationale for advancing our drug in NASH is that by activating FXR in the liver, we believe that it reduces the excess lipid load which is a causal factor in the disease. In addition, there is preclinical evidence that by activating FXR systemically, OCA is able to shunt excess lipids away from collecting in arteries and other organs which could also be beneficial. It is in any case clear that the lipid changes seen in OCA-treated patients are part of a complex set of mechanisms and we are already conducting further studies to gain a more complete understanding of the clinical implications."

The timing of the release and the major decline in shares would seem to indicate that the cholesterol concerns may also be part of the picture this week.

“[While the cholesterol] link is not new news, we believe many investors are seeing it now for the first time,” wrote Oppenheimer & Co. analyst Akiva Felt in a note to clients.

While the Phase II trial showed promising results, some still noted that OCA is still far from approval even if it appears nearly certain to reach that end point.

“What we have is a proof of concept study,” said Nezam Afdhal, head of hepatology at Beth Israel Deaconess Medical Center in Boston. “‘How that becomes a registration trial and an approvable drug is a million-dollar question.’’

ICPT Continues to Move Price for Galectin, Others

The explosion of Intercept’s stock, as well as that of other pharma companies developing similar therapies, indicates that the potential for a successful treatment for fatty liver disease, which is estimated to affect 5 percent of the population, took the markets by surprise to some degree.

And, once again, the markets appeared to treat companies with potential treatments for fatty liver disease as a monolith to some degree, with Intercept's declines appearing to trigger similar declines among its competitors in the fatty liver disease sphere.

Shares in Galectin Therapeutics (GALT) plunged over 12 percent Tuesday to make its two-day losses over 20 percent, while Conatus Pharmaceuticals (CNAT) lost almost 2.75 percent Tuesday for two-day losses just under 20 percent.

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. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for icpt
Cisc@
26 Apr 15 01:24:53
RT @GeryDIVRY: $GNFT $ICPT Instead of OCA, stabilized patients under statins show a second LDL level improvement under GFT505, the effects…
Cisc@
26 Apr 15 01:24:49
RT @GeryDIVRY: $ICPT $GNFT The LDL level decrease is better with GFT505 alone than OCA+statins in any configuration
Hung Tran, MS, MD
26 Apr 15 01:24:42
RT @PropThinker: Unexpected NASH Player Emerges in Novo Nordisk - http://t.co/xyS2hrbXy8 $NVO $ICPT $GNFT
Cisc@
26 Apr 15 01:18:16
RT @GeryDIVRY: $ICPT $GNFT http://t.co/sRNKo1KPKP
Lyaeos
26 Apr 15 01:18:03
RT @GeryDIVRY: $ICPT $GNFT The LDL level decrease is better with GFT505 alone than OCA+statins in any configuration
Giua Celestri
26 Apr 15 01:14:22
RT @GeryDIVRY: $ICPT $GNFT http://t.co/sRNKo1KPKP
Eric LEMONNIER
26 Apr 15 00:28:50
RT @GeryDIVRY: $GNFTF $ICPT A comparaison of known data's http://t.co/wRifA6OGrq
Eric LEMONNIER
26 Apr 15 00:28:44
RT @GeryDIVRY: $GNFT $ICPT Instead of OCA, stabilized patients under statins show a second LDL level improvement under GFT505, the effects…
Eric LEMONNIER
26 Apr 15 00:28:35
RT @GeryDIVRY: $ICPT $GNFT The LDL level decrease is better with GFT505 alone than OCA+statins in any configuration
Eric LEMONNIER
26 Apr 15 00:27:36
RT @GeryDIVRY: $ICPT $GNFT http://t.co/sRNKo1KPKP
TooTiX
26 Apr 15 00:20:45
RT @GeryDIVRY: $ICPT $GNFT http://t.co/sRNKo1KPKP
TooTiX
26 Apr 15 00:20:40
RT @GeryDIVRY: $GNFT $ICPT Instead of OCA, stabilized patients under statins show a second LDL level improvement under GFT505, the effects…
Hung Tran, MS, MD
26 Apr 15 00:20:34
RT @Tootix: The Truth about the Ph2B Golden study #Genfit Conclusions and extensions for Ph3 http://t.co/8Y8JxBPSka $GNFT $ICPT #NASH…
TooTiX
26 Apr 15 00:20:24
RT @GeryDIVRY: $ICPT $GNFT The LDL level decrease is better with GFT505 alone than OCA+statins in any configuration
TooTiX
26 Apr 15 00:20:08
RT @GeryDIVRY: $GNFTF $ICPT A comparaison of known data's http://t.co/wRifA6OGrq
El Niño
26 Apr 15 00:07:07
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Coriat
26 Apr 15 00:05:33
RT @GeryDIVRY: $ICPT $GNFT The LDL level decrease is better with GFT505 alone than OCA+statins in any configuration
Coriat
26 Apr 15 00:04:57
RT @GeryDIVRY: $ICPT $GNFT http://t.co/sRNKo1KPKP
Russell Barbour
25 Apr 15 23:53:17
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growy
25 Apr 15 23:25:00
RT @GeryDIVRY: $GNFTF $ICPT A comparaison of known data's http://t.co/wRifA6OGrq
growy
25 Apr 15 23:24:34
RT @GeryDIVRY: $ICPT $GNFT The LDL level decrease is better with GFT505 alone than OCA+statins in any configuration
growy
25 Apr 15 23:24:10
RT @GeryDIVRY: $GNFT $ICPT Instead of OCA, stabilized patients under statins show a second LDL level improvement under GFT505, the effects…
Hung Tran, MS, MD
25 Apr 15 22:52:37
What happened when Mr. Grise abandons his plans and accept the truce? Would $MNKD spike up several folds like $ICPT? http://t.co/ACxvU1tQln
Hung Tran, MS, MD
25 Apr 15 21:41:02
The "Alternative Hypothesis" to atheroslerosis is highly likely the new standard 1 day $ICPT https://t.co/qDSrItAes3
Hung Tran, MS, MD
25 Apr 15 21:39:37
OCA embodies beauty by simplicity as the molecule is a simple mod of the 6-C position of natural bile acid $ICPT https://t.co/YhI8A9MLmb
Hung Tran, MS, MD
25 Apr 15 21:38:34
What's written or known about the holy grail receptor FXR is only tips of the iceberg $ICPT https://t.co/e23Pi6MyIm
Hung Tran, MS, MD
25 Apr 15 21:37:55
Most pros love Intercept but some got the boot as they were afraid that I mentioned $ICPT name with $MNKD https://t.co/nvifbfD1jy
Hung Tran, MS, MD
25 Apr 15 21:37:08
I adopted the boy $ICPT and took him from $256 when WS said it can't be done ... and nourish his growth/edu to $450 https://t.co/5KM235kTrW
Hung Tran, MS, MD
25 Apr 15 21:36:03
Intercept $ICPT leaped multiple folds in one day after its Wall Street mother Dr. McMinn published a research https://t.co/6iTBJxPFBX
Bleecker
25 Apr 15 21:21:55
RT @GeryDIVRY: $ICPT $GNFT http://t.co/sRNKo1KPKP
Pels André
25 Apr 15 21:19:34
RT @GeryDIVRY: $GNFTF $ICPT A comparaison of known data's http://t.co/wRifA6OGrq
Hung Tran, MS, MD
25 Apr 15 19:45:25
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Russell Barbour
25 Apr 15 19:06:22
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Géry Lambert
25 Apr 15 18:12:49
RT @GeryDIVRY: $GNFTF $ICPT A comparaison of known data's http://t.co/wRifA6OGrq
Géry Lambert
25 Apr 15 18:12:37
RT @GeryDIVRY: $GNFT $ICPT Instead of OCA, stabilized patients under statins show a second LDL level improvement under GFT505, the effects…
Géry Lambert
25 Apr 15 18:12:35
RT @GeryDIVRY: $ICPT $GNFT The LDL level decrease is better with GFT505 alone than OCA+statins in any configuration
Géry Lambert
25 Apr 15 18:11:49
RT @GeryDIVRY: $ICPT $GNFT http://t.co/sRNKo1KPKP
Razi
25 Apr 15 17:38:02
RT @GeryDIVRY: $ICPT $GNFT http://t.co/sRNKo1KPKP
Razi
25 Apr 15 17:36:12
RT @GeryDIVRY: $ICPT $GNFT The LDL level decrease is better with GFT505 alone than OCA+statins in any configuration
Chris
25 Apr 15 17:21:15
RT @GeryDIVRY: $ICPT $GNFT The LDL level decrease is better with GFT505 alone than OCA+statins in any configuration
Chris
25 Apr 15 17:21:06
RT @GeryDIVRY: $GNFT $ICPT Instead of OCA, stabilized patients under statins show a second LDL level improvement under GFT505, the effects…
Gery DIVRY
25 Apr 15 16:31:39
$ICPT $GNFT http://t.co/sRNKo1KPKP
Kristina Duering
25 Apr 15 16:05:45
RT @GeryDIVRY: $GNFTF $ICPT A comparaison of known data's http://t.co/wRifA6OGrq
Kristina Duering
25 Apr 15 16:01:22
RT @GeryDIVRY: $ICPT $GNFT The LDL level decrease is better with GFT505 alone than OCA+statins in any configuration
Gery DIVRY
25 Apr 15 15:59:03
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clem_trading
25 Apr 15 15:51:07
RT @GeryDIVRY: $ICPT $GNFT The LDL level decrease is better with GFT505 alone than OCA+statins in any configuration
Gery DIVRY
25 Apr 15 15:50:54
$ICPT $GNFT The LDL level decrease is better with GFT505 alone than OCA+statins in any configuration
clem_trading
25 Apr 15 15:50:53
RT @GeryDIVRY: $GNFTF $ICPT A comparaison of known data's http://t.co/wRifA6OGrq
Gery DIVRY
25 Apr 15 15:48:14
$GNFTF $ICPT A comparaison of known data's http://t.co/wRifA6OGrq
Géry Lambert
25 Apr 15 13:56:05
RT @Sachakin: Confirmé à l'EASL : Novo Nordisk va entrer en Phase 3 dans la NASH avec son Victoza (liraglutide) $GNFT $ICPT
				
				
By  +Follow January 14, 2014 12:05PM
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