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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.


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Results for icpt
Tom Silver
17 Dec 14 22:29:43
@TomSilver39 Leerink: Fibrosis market and involvement of key biotech 2015: $GILD, $ICPT, $FGEN, $BIIB $BMY $SNY
nixon786
17 Dec 14 19:01:46
Baker brothers had sold out $ICPT before this sell off & now selling $XOMA
TickerChirp
17 Dec 14 13:35:05
Leading in Twitter About $ICPT (Intercept Pharma Inc symbol ICPT) on 12/17/2014 http://t.co/i7yCbtpxNu
Jiří Žváček
17 Dec 14 13:28:02
@MarcelitoMaura: The next to NASH? ONE HINT -- Its not $ICPT http://t.co/0dEZirTkcB $ARNA $PFE Belviq will be the next NASH blockbuster$ARNA
Matt finston
17 Dec 14 13:12:13
wow $ICPT up $11.41 a share. nice
Matt finston
17 Dec 14 12:57:41
My winners today: $APP 18% $Bas 10% $ICPT 8% and $SDRL 10%
Dan Rosenblum
17 Dec 14 12:21:08
$ICPT woke up today maybe the tax loss selling is over
MAISA
17 Dec 14 12:09:49
$ICPT $138.63 +$9.33 (7.22%) -- look good
Maleah
17 Dec 14 11:48:49
[Case Study] How A 24 yr old student Made >$0.5 Million In 8 Months With Stocks http://t.co/Hce0Z2DnDs $ILMN $MET $ICPT $VLCCF #stocks
Marilyn
17 Dec 14 11:09:14
MarcelitoMaura: The next to NASH? ONE HINT -- Its not $ICPT http://t.co/OYX93wGxlA $ARNA $PFE Belviq will be the next NASH blockbuster $ARNA
Matt finston
17 Dec 14 10:50:42
Average price target of $icpt is 447 a share
ronin245
17 Dec 14 09:58:43
Commented on StockTwits: $ubnt went for more, $JKS $CSIQ flushes dipable $ICPT cam up off 60min DB 130, & $SPL... http://t.co/cWmU4YvSgP
aline
17 Dec 14 09:32:53
@MarcelitoMaura: The next to NASH? ONE HINT -- Its not $ICPT http://t.co/U7N9jqS7nX $ARNA $PFE Belviq will be the next NASH blockbuster $ARN
Perfor Mance
17 Dec 14 09:28:21
Option Millionaires: jimmybob: $ICPT 139.39 http://t.co/Js5bnDLieT
Matt finston
17 Dec 14 09:07:12
@Psando @Stockstrodamus $BAS, $SDRL, also bought $ICPT today, $APP,
chartguy89
17 Dec 14 07:40:23
ICPT +2.03% Stock Charts $ICPT Intercept Pharmaceuticals Inc. (NASDAQ) Last Updated: 12/17/2014 09:40:21 ICPT http://t.co/a2XfR6HoN6
StockNewsWires
17 Dec 14 07:29:09
$ICPT: Intercept Pharmaceuticals Given Buy Rating at Bank of America (ICPT) http://t.co/vWOY5T0wdb http://t.co/ZSuph6k2qz
Ticker Report
17 Dec 14 07:28:24
Intercept Pharmaceuticals Given Buy Rating at Bank of America $ICPT http://t.co/jrDH7QdS76
Anything Random
17 Dec 14 04:43:58
@MarcelitoMaura:The next to NASH? ONE HINT -- Its not $ICPT http://t.co/aem8XiZHHc $ARNA $PFE Belviq will be the next NASH blockbuster $ARNA
Mikel Barbusa
17 Dec 14 02:15:26
@MarcelitoMaura: The next to NASH? ONE HINT -- Its not $ICPT http://t.co/daoYxkMh0A $ARNA $PFE Belviq will be the next NASH blockbuster$ARNA
David Corral
17 Dec 14 02:12:43
@MarcelitoMaura: The next to NASH? ONE HINT - Its not $ICPT http://t.co/LgUVRiPPez $ARNA $PFE Belviq will be the next NASH blockbuster $ARNA
Hafiz Putra Ludyanto
17 Dec 14 01:14:48
The next to NASH? ONE HINT -- Its not $ICPT http://t.co/5fIpeGlppK $ARNA $PFE Belviq will be the next NASH blockbuster $ARNA
Lael la
17 Dec 14 01:00:57
The next to NASH? ONE HINT -- Its not $ICPT http://t.co/Me1ErRvApA $ARNA $PFE Belviq will be the next NASH blockbuster $ARNA
Nedim
17 Dec 14 00:25:37
The next to NASH? ONE HINT -- Its not $ICPT http://t.co/YU5bvcbo1q $ARNA $PFE Belviq will be the next NASH blockbuster $ARNA
SmallCaps
16 Dec 14 21:48:54
[Case Study] How A 24 yr old student Made >$0.5 Million In 8 Months With Stocks http://t.co/Fv2ZjiN52T $ILMN $MET $ICPT $VLCCF #stocks
Leilani Pips
16 Dec 14 19:41:05
RT @wuzupwidat: @PipsToDollars Shoot... Thought this was the next $ICPT or $HGSI
ʇɐpıʍdnznʍ
16 Dec 14 19:39:07
@PipsToDollars Shoot... Thought this was the next $ICPT or $HGSI
Luigina Galloway
16 Dec 14 17:48:15
Super Stock Screener rates $ICPT as a Strong Sell
Maleah
16 Dec 14 14:22:20
[Case Study] How A 24 yr old student Made >$0.5 Million In 8 Months With Stocks http://t.co/Hce0Z2DnDs $ILMN $MET $ICPT $VLCCF #stocks
therock
16 Dec 14 14:03:17
The next to NASH? ONE HINT -- Its not $ICPT http://t.co/jaZmwqpzHQ $ARNA $PFE Belviq will be the next NASH blockbuster $ARNA
Lombard Capital
16 Dec 14 12:25:26
@adamfeuerstein @VikramKhanna_ I really wish the year ends in style and ACHN soar another 100% from here. We need $ICPT like Jan move.
Anthony Allyn
16 Dec 14 12:12:48
$ICPT call options? http://t.co/sSLNOsJ4np
Daniel De Oliveira
16 Dec 14 11:59:59
RT @Maleah333: [Case Study] How A 24 yr old student Made >$0.5 Million In 8 Months With Stocks http://t.co/Hce0Z2DnDs $ILMN $MET $ICPT $VLC…
zipjet
16 Dec 14 11:59:21
RT @MartinShkreli: i think $ICPT is a good long
Jake Larson
16 Dec 14 11:47:31
The next to NASH? ONE HINT -- Its not $ICPT http://t.co/Cyrp0PEgb5 $ARNA $PFE Belviq will be the next NASH blockbuster $ARNA
V
16 Dec 14 11:07:57
@MartinShkreli I read this a while back and it scared me out of a long psn in $ICPT: http://t.co/eBlAEDwfuG
shmittahcapital
16 Dec 14 10:56:26
@Martinshkreli: when is data being released for $icpt?
Martin Shkreli
16 Dec 14 10:54:24
i think $ICPT is a good long
chillipickle
16 Dec 14 10:45:25
What a turd this $ICPT is 💩
Venator
16 Dec 14 10:44:58
$ICPT Bear/Shorts got it in a stranglehold. Y wud any1 else b selling now -no news;11mo low; &right aftr Director made signif acquisition
Yu Zhu
16 Dec 14 09:54:56
RT @svKatface: RT @insider_filings $ICPT: Benatti Luca bought a net $111,888 in INTERCEPT PHARMACEUTICALS INC. http://t.co/JUkRMPnO43
Tommaso Rossi
16 Dec 14 09:51:52
The next to NASH? ONE HINT -- Its not $ICPT http://t.co/mCIcHLKOFS $ARNA $PFE Belviq will be the next NASH blockbuster $ARNA
Daily Contracts
16 Dec 14 09:28:01
Real-Time feed of company contracts, original agreements and executive updates from Intercept Pharmaceuticals $ICPT http://t.co/w8FhCjuRDe
Maleah
16 Dec 14 09:14:01
[Case Study] How A 24 yr old student Made >$0.5 Million In 8 Months With Stocks http://t.co/Hce0Z2DnDs $ILMN $MET $ICPT $VLCCF #stocks
Thomas F.R.
16 Dec 14 09:05:53
RT @R4inb0w_: @okim59 BMO Target price for $ICPT : $515 ... That's all! ;-) #GENFIT still undervalued... $GNFT
R4inb0w
16 Dec 14 09:04:11
@okim59 BMO Target price for $ICPT : $515 ... That's all! ;-) #GENFIT still undervalued... $GNFT
Venator
16 Dec 14 09:01:58
RT @insider_filings $ICPT: Benatti Luca bought a net $111,888 in INTERCEPT PHARMACEUTICALS INC. http://t.co/JUkRMPnO43
Sleek Money
16 Dec 14 08:47:27
Intercept Pharmaceuticals Stock Rating Reaffirmed by Bank of America $ICPT http://t.co/UBDb7P5Qq1
StockNewsWires
16 Dec 14 08:39:02
$ICPT: Genfit Data Not Seen as Competitive Threat to Intercept ... http://t.co/izi3bxv0lZ http://t.co/zG27UR3yeW
SIAnalystWire
16 Dec 14 08:20:20
Genfit Data Not Seen as Competitive Threat to Intercept Pharmaceuticals $ICPT - BMO Capital http://t.co/mlB9qS4REA
				
				
By  +Follow January 14, 2014 12:05PM
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