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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
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
Eternity101
15 Sep 14 11:35:35
$ICPT -- alfalfa article on it. get ready
Seeking Alpha
15 Sep 14 11:30:06
Is Intercept Pharmaceuticals Building The Next Great Specialty Franchise? http://t.co/icB6pGUU3E $ALXN $CNAT $GILD $ICPT
smtrader StockTrader
15 Sep 14 11:03:45
@Yogibea98873426 u r late to short, lock in some profits on those that have a huge % downside today, i.e. $SCTY $TSLA $ICPT $XONE & others
Venator
15 Sep 14 10:54:35
$ICPT Thot the selling was over, but some1 droppt the price there (at red oval) $2-3 in one move http://t.co/dY82RMuLMa
Venator
15 Sep 14 10:36:13
$ICPT Buy order 50 x 270.6... just executed.
Venator
15 Sep 14 10:30:24
I am honestly more worried bout my $NFLX than my $ICPT . The latter's sell-off seems to have abated...
Venator
15 Sep 14 10:21:11
$ICPT also, others on Stoktwits saying that funds are selling high betas/MOMOs today, to free up $ for BABA alibaba ipo.
Venator
15 Sep 14 10:19:11
FEYE and SPLK among the 6 (incl $ICPT) being ranked out of the NAS-50, and they are also down 5.5 - 6%.
Irene Tato
15 Sep 14 09:53:46
RT @TomSilver39: CS"Top 10 Biotech Companies with the Least Short Interest& Most Short Interest: $BIIB $AMGN $CELG $ICPT $SRPT $ARIA " http…
Comunica Biotec
15 Sep 14 09:51:48
RT @TomSilver39: CS"Top 10 Biotech Companies with the Least Short Interest& Most Short Interest: $BIIB $AMGN $CELG $ICPT $SRPT $ARIA " http…
TV_Trading Ideas
15 Sep 14 09:45:31
Can we really fill the GAP? $ICPT http://t.co/ZWEovK0yYg
PresidiumCapital
15 Sep 14 09:01:03
$ICPT chart http://t.co/7Yaa65yK5n < peek into the Gap Fill today
Ani Anirudhan
15 Sep 14 08:50:06
$ICPT in the gap. Gap fill would be a great buy. http://t.co/w3wdiYIw3w
sin0901i
15 Sep 14 08:28:40
Picked up some shares in $ICPT, $ARWR and $SRPT.
Day Trade Alerts
15 Sep 14 08:21:54
via #AlertTrade SHORT Seller Alert $ICPT - NTERCEPT PHARMACEUTICALS #ShortSeller #Stocks http://t.co/VS8RO1bzXJ
Ani Anirudhan
15 Sep 14 08:02:12
RT @svKatface: RT @TomSilver39 CS "Top10 Biotech Co's w/ the Least & Most Short Interest:" $CLDX $KERX $ICPT $SRPT $ARIA http://t.co/JaO7…
Large Void Bot
15 Sep 14 08:00:37
Popular: $PLUG, $BBRY, $LOCO, $AMZN, $INVN, $MO, $NETE, $ICPT, $LNKD, $NOV, $XLU, $HES
Venator
15 Sep 14 07:53:39
Commented on StockTwits: Trying Link again (Short Interest, Biotechs) : http://t.co/Y2Si5VcSkQ $CLDX $KERX $ICPT... http://t.co/jiVdBkIjCE
Venator
15 Sep 14 07:51:19
RT @TomSilver39 CS "Top10 Biotech Co's w/ the Least & Most Short Interest:" $CLDX $KERX $ICPT $SRPT $ARIA http://t.co/JaO7gF8pOH
Venator
15 Sep 14 07:43:32
$ICPT I have ridden this stock down to 217 (and believe me, I bot there!) A few weeks ago it hit what 350? Beta>1, not for the squeemish.
Venator
15 Sep 14 07:34:07
No buy signal yet (no1 be surprised to hear this, lol) Built a Renko Block chart 4signal. Wishn I'd done a DT short- wud be my 1st S ! $ICPT
Venator
15 Sep 14 07:23:35
Commented on StockTwits: Changes to NASDAQ-50 http://t.co/k8tQK9fgXq $ICPT $MDVN http://t.co/PtvaFklR1C
Stock Signaling
15 Sep 14 06:31:15
Upgraded Stocks Active in Pre-Market: $CNVR $JDSU $NDLS $FEYE $CSIQ $INFN $ICPT $VRTX $SNDK $INFI $TASR $BDBD $GRPN $CENX $ACHN #mkt #dow
US Banking News
15 Sep 14 06:18:42
Intercept Pharmaceuticals Gets Average Rating of Buy from Analysts $ICPT http://t.co/yV6Jn3yaaI
Venator
15 Sep 14 05:52:42
$ICPT to be removed from NASDAQ-50 list (but not -100), effective next weekend. This is not necessarily bad! See: http://t.co/kXxcHtzsMe
Andrew Rocco
14 Sep 14 17:00:49
$ICPT ....nice and tight....setting up for higher prices. This thing isn't easy to trade though.
Lynn Sydney
14 Sep 14 16:13:04
RT @PeterBardens: $ICPT Intercept Pharmaceuticals Inc Stock Upgraded (ICPT) http://t.co/lkVHw0jCK4
KiesenBiker
14 Sep 14 12:45:04
RT @TomSilver39: CS"Top 10 Biotech Companies with the Least Short Interest& Most Short Interest: $BIIB $AMGN $CELG $ICPT $SRPT $ARIA " http…
Allen Brzozowski
14 Sep 14 12:09:22
RT @TomSilver39: CS"Top 10 Biotech Companies with the Least Short Interest& Most Short Interest: $BIIB $AMGN $CELG $ICPT $SRPT $ARIA " http…
scott
14 Sep 14 11:41:24
RT @TomSilver39: CS"Top 10 Biotech Companies with the Least Short Interest& Most Short Interest: $BIIB $AMGN $CELG $ICPT $SRPT $ARIA " http…
PHARMD
14 Sep 14 11:22:14
RT @TomSilver39: CS"Top 10 Biotech Companies with the Least Short Interest& Most Short Interest: $BIIB $AMGN $CELG $ICPT $SRPT $ARIA " http…
Daniel HS
14 Sep 14 11:05:22
RT @TomSilver39: CS"Top 10 Biotech Companies with the Least Short Interest& Most Short Interest: $BIIB $AMGN $CELG $ICPT $SRPT $ARIA " http…
Makdess
14 Sep 14 11:03:25
RT @TomSilver39: CS"Top 10 Biotech Companies with the Least Short Interest& Most Short Interest: $BIIB $AMGN $CELG $ICPT $SRPT $ARIA " http…
Mr.O
14 Sep 14 11:01:11
RT @TomSilver39: CS"Top 10 Biotech Companies with the Least Short Interest& Most Short Interest: $BIIB $AMGN $CELG $ICPT $SRPT $ARIA " http…
Eternity101
14 Sep 14 10:56:21
RT @TomSilver39: CS"Top 10 Biotech Companies with the Least Short Interest& Most Short Interest: $BIIB $AMGN $CELG $ICPT $SRPT $ARIA " http…
Juan P. Serrate, DVM
14 Sep 14 10:55:58
RT @TomSilver39: CS"Top 10 Biotech Companies with the Least Short Interest& Most Short Interest: $BIIB $AMGN $CELG $ICPT $SRPT $ARIA " http…
Tom Silver
14 Sep 14 10:55:29
CS"Top 10 Biotech Companies with the Least Short Interest& Most Short Interest: $BIIB $AMGN $CELG $ICPT $SRPT $ARIA " http://t.co/RMCOQTe2x7
Eternity101
13 Sep 14 22:25:09
BIO STOCKS I GOT ON MY RADAR: $OXGN $ICPT $PBYI $BLUE .. ...so far
US Consumer News
12 Sep 14 22:15:21
Intercept Pharmaceuticals Director Klaus Dr Veitinger Sells $109,676 in $ICPT http://t.co/aPJcqrVCx5
US Banking News
12 Sep 14 22:15:01
Intercept Pharmaceuticals Director Klaus Dr Veitinger Sells $109,676 in $ICPT http://t.co/34zmfQenHw
MAISA
12 Sep 14 21:43:08
$ICPT_$288.21_its support for International Primary Biliary Cirrhosis (PBC) Day, taking place September 14, 2014.
John Turner
12 Sep 14 15:31:27
$ICPT Intercept Pharmaceuticals Inc Stock Upgraded (ICPT) http://t.co/VsTcWWDUzd
				
				
By  +Follow January 14, 2014 12:05PM
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