logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Intercept Pharmaceuticals (ICPT) Sees Pullback from Record Gains

By  +Follow January 14, 2014 12:05PM
Share:
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.


Signup for our daily newsletter and get our best articles emailed right to you!

Results for icpt
PHARMD
1 Oct 14 22:37:11
Selling in biotech sector due to market volatility providing opportunities in selected stocks $icpt $arwr $clvs $srpt $cytr
MAISA
1 Oct 14 17:50:18
$ADHD #MAISA point is..#MAISA was with BULLS on $ICPT $VRTX $PBYI $ITMN and rode it thru the data. Will $ADHD rock like them? think so!
MAISA
1 Oct 14 17:39:04
$ADHD what happened when $ITMN announced positive data? $12 to $37. how about $ICPT after positive data? from $220 to $390.
MAISA
1 Oct 14 17:38:05
$ADHD remember that $ADHD is in Israel + more fun when SHORTS attack $ADHD just like $ITMN from $18 to $12, $ICPT from $240 to $210
MAISA
1 Oct 14 17:37:21
@jrs101780 $adhd what happened when $ITMN announced positive data? $12 to $37. how about $ICPT after positive data? from $220 to $390
MAISA
1 Oct 14 17:35:46
@jrs101780 remember that $ADHD is in Israel + more fun when SHORTS attack $ADHD just like $ITMN from $18 to $12, $ICPT from $240 to $210
Tri B growthinvestor
1 Oct 14 17:27:43
Commented on StockTwits: $ICPT is the risk/reward better to own ICPT at this level or buy into $GILD at 45% YTD? ... http://t.co/4KhGqjYUNW
Derald Muniz
1 Oct 14 16:03:10
former 50/50 Basket member $ICPT has certainly been in a hurry to give up those Gap Up gains http://t.co/BaNzx4mKBj
Hasanna Hosanna
1 Oct 14 12:30:51
RT @StockSignaling: After Hours Price Advances: $FOLD $BK $RIG $BNS $IMMR $CL $TRN $ASNA $FNF $RAI $LLY $CTXS $OMI $ICPT $HSC http://t.co/3…
fezziwig2008
1 Oct 14 12:24:43
@perrone_ken 2 PegpH20 studies enrolling/Rxing w 3rd preop Study @ #MSKCC w Erbitux recruiting-when Only Rx'd show up for f/u- $HALO = $ICPT
Investbioer
1 Oct 14 12:19:00
$exel $aezs $cytr $cnat $icpt $glmd sun still go up tomorrow.
Investbioer
1 Oct 14 12:11:16
$indu -300 points today. all this go to hell. $cytr $exel $aezs $glmd $icpt
JMK
1 Oct 14 11:37:55
what was niddk's issue with $ICPT with respect to icpt's handling of flint topline data release in August? Please help! Thx
Clayton Mckenzie
1 Oct 14 11:21:19
Bought $ICPT here $233 avg for swing into Nov. AASLD.
Brad Loncar
1 Oct 14 10:59:16
RT @zbiotech: @bradloncar y wouldn't bet on much ahead of AASLD - $ICPT dissemination was anything but smooth
zach
1 Oct 14 10:59:03
@bradloncar y wouldn't bet on much ahead of AASLD - $ICPT dissemination was anything but smooth
Venator
1 Oct 14 10:36:08
$ICPT Yes, and p. 48 lists Exhibitor firms.
Venator
1 Oct 14 10:34:06
Commented on StockTwits: Thx, @Sovaldiinvestor $ICPT is an Exhibitor at the aasld. Hopefully this link works..... http://t.co/pJippQpJ9h
TickerTutor
1 Oct 14 09:43:25
$ICPT Bought Nov. 450 calls @ .3
Dr. Paul DeSantis
1 Oct 14 08:39:42
@GeesLife_ rachel mcminn left to go work for $ICPT
Venator
1 Oct 14 07:41:12
$ICPT @Rebuy27 -dont U own/watch other stocks?! Whole market in despair - every indice is in the red eg NASbio down 1.5% even w/Ebolas up
Mehrdad Ketabchi
1 Oct 14 07:06:29
Bought $icpt
jjz
1 Oct 14 06:00:13
RT @dougheuringaria: RBC Key biotech events we are watching for October $arwr $gild $celg $icpt http://t.co/FPyzGWMh4o
Andy Chen
1 Oct 14 05:33:38
RT @dougheuringaria: RBC Key biotech events we are watching for October $arwr $gild $celg $icpt http://t.co/FPyzGWMh4o
Saber
1 Oct 14 05:06:57
@zerohedge $ICPT like ?
S Manian
1 Oct 14 05:00:14
RT @dougheuringaria: RBC Key biotech events we are watching for October $arwr $gild $celg $icpt http://t.co/FPyzGWMh4o
dougheuring
1 Oct 14 04:41:47
RBC Key biotech events we are watching for October $arwr $gild $celg $icpt http://t.co/FPyzGWMh4o
Peter Rumble
1 Oct 14 04:23:40
CNBC Why these 3 biotechs might be next takeout targets: ICYMI @cnbcfastmoney last nite http://t.co/FvRdPZz0UP $ICPT $ARWR $IBB $SPY $TKMR
The Lex Line
1 Oct 14 04:07:48
And if $TKMR can't pop the way $ICPT did earlier this year, it's nothing to get excited about. I'll watch out for the $100 price range?
Stocks News&Markets
1 Oct 14 01:39:28
lx21 made $15,427 on $ICPT -Check it out! http://t.co/cIuXaVKgd0 Learn #howtotrade http://t.co/axK8SMSgo9 $FB $SPY $stocks
Gotham City Capital
30 Sep 14 19:47:45
RT @MaisaCorp: @realdealneiman $ADHD here is a choice either take 50% haircut or take a chance to go 200% like $ITMN $ICPT $PBYI
CashRocket
30 Sep 14 19:20:09
RT @MaisaCorp: @realdealneiman $ADHD here is a choice either take 50% haircut or take a chance to go 200% like $ITMN $ICPT $PBYI
Kenneth Edwards
30 Sep 14 19:10:59
@adamfeuerstein @bnichols9883 This is the pot calling the kettle black $GALE $PCYC $SRPT $ICPT $ARNA $OMED $REGN $CELG $CPRX
Dan
30 Sep 14 15:20:21
$ICPT high open interest range is 237.50 to 250.00 for option expiration 10/03/2014. http://t.co/thsIsWnw7K
Isaic D. Young
30 Sep 14 14:58:44
@jimcramer $ICPT down a bunch from highs time to take a look again? I cant find anything that changed from what made it go up originally
Peter Rumble
30 Sep 14 12:24:14
$ICPT taking major position here now as it is atleast 50-100% return from 237, fully discounted with solid return $IBB $SPY $QQQ $MRK
Tricia Dineen
30 Sep 14 12:22:45
RT @dougheuringaria: Rbc AASLD preview of what's coming up and what we're looking for... $GILD $MRK $ABBV $ICPT $ARWR $ACHN Replicor http:/…
Carine
30 Sep 14 12:03:05
RT @svKatface: $ICPT Noting Genfit very hard2trade on USA exchange. Extremely tiny volume; some brokers wont allow; foreign trans fee li…
JMK
30 Sep 14 11:24:13
$ICPT Anyone have educated idea how likely FDA is to weigh in on OCA/NASH phase 3 design/timing this year? Appreciate any input.
Venator
30 Sep 14 11:14:37
$ICPT The expression "...is plucking my last nerve", keeps running through my mind.
Venator
30 Sep 14 10:17:11
$ICPT Noting Genfit very hard2trade on USA exchange. Extremely tiny volume; some brokers wont allow; foreign trans fee likely applies.
Stocks News&Markets
30 Sep 14 09:03:58
lx21 made $158,909 on $ICPT -Check it out! http://t.co/SwHWlMUioP Learn #howtotrade http://t.co/axK8SMSgo9 $FB $SPY $stocks
Lombard Capital
30 Sep 14 07:51:12
So $ICPT filled the gap. @sharkbiotech @Sport234a
Clair Voight
30 Sep 14 07:31:34
$ICPT Cowen and Company Begins Coverage on Intercept Pharmaceuticals (ICPT) http://t.co/HQvtnzPXPr
John Turner
30 Sep 14 07:31:34
$ICPT NASH: The Next Big Biotech Catalyst After Hepatitis C http://t.co/Sl3oDOGLNN
Venator
30 Sep 14 06:59:49
$ICPT Bears got reins..? Increase in Short Interest from a month ago. http://t.co/t4XppwVG05 It's not a "Market" if every1 has same view.
Venator
30 Sep 14 06:49:24
$ICPT Dunno. :-( Testing investors' resolve? Last day of the Qtr, funds and others do portfolio rebalancing... Market as whole, weak.
Alan Sparks
30 Sep 14 05:54:12
fwiw, the gap is filled on $ICPT
gil43
30 Sep 14 03:16:13
RT @Sachakin: Intercept $ICPT citée comme cible d'acquisition potentielle (notamment par Gilead $GILD).. $GNFT http://t.co/noBs9wKDYm
Carine
30 Sep 14 01:41:18
RT @Sachakin: Intercept $ICPT citée comme cible d'acquisition potentielle (notamment par Gilead $GILD).. $GNFT http://t.co/noBs9wKDYm
				
				
By  +Follow January 14, 2014 12:05PM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.