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Intercept Pharmaceuticals (ICPT) Sees Pullback from Record Gains

By  +Follow January 14, 2014 12:05PM
Tickers Mentioned:

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
31 Oct 14 18:31:12
Intercept Pharmaceuticals, Inc. (Nasdaq:ICPT) to Report Third Quarter 2014 Results on November 7. $ICPT http://t.co/zQnRwocWLa
Dr. Paul DeSantis
31 Oct 14 07:38:41
OMG--- im up on $ICPT contrarian signal @alsabogal such occurrences are indicators of twilight zone
Stock Relay
31 Oct 14 07:06:39
stockblaster14: Stock Alerts: Intercept Pharmaceuticals Inc (ICPT) 259.47 $ICPT http://t.co/JYvN2Mu0w2
Stock Moo
31 Oct 14 04:02:31
$icpt: Intercept to Report Third Quarter 2014 Results on November 7 and Present at Upcoming Conferences http://t.co/8mPtxppky5
Peter Rumble
31 Oct 14 03:12:03
$ICPT to Report Third Quarter 2014 Results on Nov 7 & Present at Upcoming Conferences.. http://t.co/vMRADwScqg $IBB $SPX $QQQ 300$ PT
31 Oct 14 03:10:01
Intercept to Report Third Quarter 2014 Results on November 7 and Present at Upcoming Conferences http://t.co/3WkltyLudC $ICPT
Peter Rumble
31 Oct 14 03:09:47
$TGTX Wainwright Sees TG Therapeutics As Take-Out Target http://t.co/IylSwltpLo PT 17$ $IBB $SPY $ICPT $GPRO
mHealth Reporter
31 Oct 14 03:08:27
RT @BV_Healthcare: $ICPT Intercept to Report Third Quarter 2014 Results on November 7 and Present at Upcoming Conferences.. http://t.co/5C3…
BV Healthcare
31 Oct 14 03:01:58
$ICPT Intercept to Report Third Quarter 2014 Results on November 7 and Present at Upcoming Conferences.. http://t.co/5C3He13WZy
Stocks News&Markets
30 Oct 14 13:00:26
lx21 made $45,810 on $ICPT -Check it out! http://t.co/UpKG2CPFlg Learn #howtotrade http://t.co/axK8SMSgo9 $NXTD $SMSI $ABMD $CALX $DUST
Technical Charting
30 Oct 14 10:31:46
@Technical_Chart Need to add $GOOG $AMZN $NFLX $QQQ $ICPT $ISRG to that short list
30 Oct 14 10:20:26
$ICPT buyout or big gap up coming soon. Just a hunch.
30 Oct 14 10:18:04
long $ICPT Nov14 260 call @ 18.85 for small hold http://t.co/2Zj3Cyd4cP
30 Oct 14 10:10:09
$ICPT Lightened my margin with a sell at 259 (+$13). Hated to do it so early, but $NFLX is killing me post-ER.
30 Oct 14 10:03:50
$LAKE and $SMED announce increases in revenue due to #Ebola related business activity. $ICPT investors read: http://t.co/vxKje2CxK4 #stocks
Samuel Brown
30 Oct 14 10:02:15
$ICPT Commit To Buy Intercept Pharmaceuticals At $150, Earn 12% Using Options http://t.co/rje14oZawz
Peter Rumble
30 Oct 14 09:39:19
$ICPT is flying again, 300$ next
Stocks News&Markets
30 Oct 14 09:00:59
lx21 made $116,781 on $ICPT -Check it out! http://t.co/laSfXOyPZL Learn #howtotrade http://t.co/axK8SMSgo9 $PDII $BBSI $IBIO $ABMD $JDST
Yu Zhu
30 Oct 14 08:40:15
RT @svKatface: $ICPT Time 4an intelligent observation: "Yeah Baby!" Nice vol buy of 4000+shares (that would be nothing4 many co's but is …
Yu Zhu
30 Oct 14 08:37:54
RT @svKatface: $ICPT Volume is really low (i.e., "normal"). MUST have more volume to ensure this trend continues.
30 Oct 14 08:32:48
$ICPT Volume is really low (i.e., "normal"). MUST have more volume to ensure this trend continues.
30 Oct 14 08:06:33
$ICPT Time 4an intelligent observation: "Yeah Baby!" Nice vol buy of 4000+shares (that would be nothing4 many co's but is good news here)
Stock Relay
30 Oct 14 02:07:41
wininstocks2014: Stock Charts: ICPT 250.33 Stock Charts $ICPT Intercept http://t.co/whKcePfVyi
29 Oct 14 20:31:56
Looking to $ICPT $CAMT $OTIV potential November cash machine.
Rick Cavalieri
29 Oct 14 15:16:36
RT @SAlphaTrending: The Time Is Now For Northwest Biotherapeutics http://t.co/cySEUWKJ1O $AAPL #APPLE $JAZZ $ICPT $PCYC $NWBO
Seeking Alpha
29 Oct 14 12:30:00
The Time Is Now For Northwest Biotherapeutics http://t.co/cySEUWKJ1O $AAPL #APPLE $JAZZ $ICPT $PCYC $NWBO
Seeking Alpha
29 Oct 14 12:16:47
The Time Is Now For Northwest Biotherapeutics http://t.co/SCtGLjDDyw $AAPL #APPLE $JAZZ $ICPT $PCYC $NWBO
Stocks News&Markets
29 Oct 14 11:01:55
lx21 made $15,427 on $ICPT -Check it out! http://t.co/cIuXaVKgd0 Learn #howtotrade http://t.co/axK8SMSgo9 $ONCY $SHLDR $MCGC $COOL $AMED
29 Oct 14 08:41:31
$ICPT needs to get past 250 and the Retails who pee their pants in excitement there and sell.
29 Oct 14 08:33:12
Firstx I notice this, viaFidelity: "Ned DavisResearchGroup upgrades $ICPT from SELL to NEUTRAL. BY Investrs Analyst Actions-private 10/27"
29 Oct 14 08:26:52
$ICPT Remember $ICPT is expected to publish in major journal by year end.
Yu Zhu
29 Oct 14 08:02:01
RT @svKatface: $ICPT a green survivor in a sea of red. barely!
29 Oct 14 08:01:11
$ICPT a green survivor in a sea of red. barely!
Abhishek Shetty
29 Oct 14 07:02:12
29 Oct 14 05:02:08
The Top in Twitter About $ICPT (Intercept Pharma Inc symbol ICPT) on 10/29/2014 http://t.co/QKPHVuDWSj
Stock Relay
29 Oct 14 04:33:12
stockblaster14: Stock Alerts: Intercept Pharmaceuticals Inc (ICPT) 246.59 $ICPT http://t.co/X07uFXj73p
Stocks to Buy
28 Oct 14 14:09:04
RadNet $RDNT remains the Top Stock in 2014, Up 447% http://t.co/FTwph2zfof #Stocks $VIMC $GRBK $VRS $PTX $ICPT $ACHN $ISR $IBIO $AVNR $AGIO
John Turner
28 Oct 14 10:31:34
$ICPT Intercept Pharmaceuticals Inc. (ICPT) Has Spiked To The Upside http://t.co/uUO9FZEaZb
28 Oct 14 08:54:52
Another "mystery" with $KITE is they are running trial with NIH. How much data they and we are going to get, Ask $ICPT
28 Oct 14 08:35:55
$ICPT My $ 227 lot is trying to get my attention, but I am ignoring it! Holding.
Llunwerth Burnard
28 Oct 14 08:31:57
Super Stock Screener rates $ICPT as a Strong Sell t,co/csahc9XG8A
28 Oct 14 08:23:10
Bio in focus $ibio $apt $nlnk $srpt $achn $cnat $cytr $dvax $icpt $tsro $cocp
28 Oct 14 07:44:29
$MSTX huge blocks traded in these days and funds increasing their stakes $CPRX $OXGN $IBB $ACHN $ICPT $ISR $IBIO $KNDI $TSLA $AAPL $RMTI
Jennifer Rhodes
28 Oct 14 07:40:56
@VikramKhanna_ $ICPT falls just out of your range but beats $RCPT on performance
28 Oct 14 07:36:23
$ICPT Is acting well. Sooner or later someone will be looking at this for acquisition. Next resistance is the 50Day MAV
28 Oct 14 07:35:40
$ICPT Now up up $52/share since posted LOLLL LOVE IT #CASHCOW
Branden Muhl
28 Oct 14 07:35:02
$RCPT can easily attain $130 by 2Q15 & $340 LT. Similar cos w pipeline within a drug $PCYC $MDVN $PBYI $ICPT all found their way to $5B+ cap
28 Oct 14 06:58:57
$ICPT Nice early move up with some volume - just what Longs want to see. http://t.co/3t0ske2Ohf
Brent Gaynor
28 Oct 14 05:49:53
If $ibb pre-market is any indication, $regn $icpt $gild should be up first hour at least.
Nico Salvatore Enea
27 Oct 14 22:47:38
I have the eery feeling the employees of $SRPT feel like LTCM employees back in the day before the implosion. OR it could be $ICPT makings
By  +Follow January 14, 2014 12:05PM



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