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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
Daily Contracts
22 Oct 14 12:59:36
Real-Time feed of company contracts, original agreements and executive updates from Intercept Pharmaceuticals $ICPT http://t.co/K84XvqdhHA
Jim
22 Oct 14 12:26:36
RT @SmarterAnalyst: $ICPT Deutsche Bank Reiterates Buy On Intercept Pharmaceuticals, $500 PT http://t.co/Ps5nuKrJt8
Smarter Analyst
22 Oct 14 12:09:03
$ICPT Deutsche Bank Reiterates Buy On Intercept Pharmaceuticals, $500 PT http://t.co/Ps5nuKrJt8
Venator
22 Oct 14 11:29:12
Has my ticker parade has been stuck for past hour...? lol $TSLA $NFLX $ACHN $ICPT $FB
US Banking News
22 Oct 14 06:13:41
Intercept Pharmaceuticals Gets Average Rating of Buy from Analysts $ICPT http://t.co/8Llmm0LASC
CapCube 2.0
21 Oct 14 12:10:23
Stocks in the red today: $CMG $OCN $ICPT $CLF $ANR $GDP $PBR to name a few .... $CMG is sweetness ....
Cornholio
21 Oct 14 11:41:25
@OptionsHawk someone is going to take $ACHN & $ICPT out eventually
Tom Wrigley
21 Oct 14 10:04:56
Some nLod in Healthcare / Biotech related stocks $ICPT $WBMD $CLVS $CBST $MDAS $UTHR $ATHN
Venator
21 Oct 14 09:32:04
$ICPT Picked up some at 227.5, may sell in combo with 223s of last week. Or, may hold along with others.
Peter Rumble
21 Oct 14 03:01:54
$ICPT is strong buy with bullish reversal last week, all targets 500$, very undervalued $SPY $IBB $GILD $ISRG
Eternity101
20 Oct 14 21:40:28
$ICPT -- what was that all about AH ?
Joe
20 Oct 14 21:37:25
@Opinterest Would help expand their multiple. But who are good candidates? $icpt $cnat? Not sure the pickings are so good right now?
Les
20 Oct 14 21:11:38
$ICPT stop raised. holding from $185/190. http://t.co/jNVRLyCG5q
InsiderTradingWire
20 Oct 14 19:30:48
$ICPT | Intercept Pharmac is down 22% since we reported $33,161,087 of insider selling on 08/28/2014. Did you ... - http://t.co/NT63ZCgfzW
Venator
20 Oct 14 09:19:53
@Rebuy27 That showed courage... but maybe better word is 'conviction'! $ICPT
Yu Zhu
20 Oct 14 09:13:47
RT @ScripMandy: @chasingthealpha Even if $ICPT NASH data publication is phenomenal, $200-plus stock may not last. Will be competition in th…
Venator
20 Oct 14 08:57:54
Wish I hadn't been such a deer-in-the-headlights at 180 last week! $ICPT
Yu Zhu
20 Oct 14 08:56:30
RT @svKatface: $ICPT Added some more in my IRA acct, at 232.
Venator
20 Oct 14 08:56:07
$ICPT Added some more in my IRA acct, at 232.
Bryon Franzen
20 Oct 14 08:49:38
RT @biotrader4gain: @biotrader4gain $ICPT and $CNAT doing very well... that's why i am adding swinging $OCRX
BioAlert
20 Oct 14 07:40:28
@biotrader4gain $ICPT and $CNAT doing very well... that's why i am adding swinging $OCRX
BioAlert
20 Oct 14 07:27:25
$CNAT .. $ICPT doing well.. $CNAT trying to break that $7 line.
Venator
20 Oct 14 07:18:32
$ICPT Hit +$ 12 in first 45 minutes... ok, I'll stop the blow-by-blow ;->
$$$ Money $$$
20 Oct 14 07:17:14
$ICPT 235.85 nice continues bullish chart
Venator
20 Oct 14 07:05:48
$ICPT Anybody day trading this? +9 after 30 minutes...
R4inb0w
20 Oct 14 01:02:04
#NASH competition : update of an Interesting chart $GNFT vs $ICPT & others (1 Year) #GENFIT #GFT505 http://t.co/PVhDJywIOJ
joshwin
19 Oct 14 23:02:13
RT @chasingthealpha: $ICPT any buys ever? Cashing out 2020 options http://t.co/KOpOK9xDtF
Big Money
19 Oct 14 15:30:35
ALL NEW TO $ICPT please be aware of the info!!!! http://t.co/RGtTE3UNf4
maxime mignot
19 Oct 14 14:23:58
RT @R4inb0w_: $GNFT #NASH #Liverdisease Ytd, Oct.16 Publication of research results by #GENFIT : http://t.co/WzrAQqo5hk $ICPT http://t.co/R…
Carine
19 Oct 14 14:01:06
RT @R4inb0w_: $GNFT #NASH #Liverdisease Ytd, Oct.16 Publication of research results by #GENFIT : http://t.co/WzrAQqo5hk $ICPT http://t.co/R…
Mandy Jackson
19 Oct 14 12:32:56
@chasingthealpha Even if $ICPT NASH data publication is phenomenal, $200-plus stock may not last. Will be competition in that space.
Shomik Ghosh
19 Oct 14 12:32:53
@chasingthealpha seems like $icpt is more automatic selling, smaller lots as % of holdings, $blue is troublesome though
Patrick
19 Oct 14 12:16:12
$ICPT any buys ever? Cashing out 2020 options http://t.co/KOpOK9xDtF
TickerChirp
19 Oct 14 11:54:04
Prevalent Tweets for $ICPT (INTERCEPT PHARMA INC symbol icpt) on 10/19/2014 http://t.co/u1HeX4X35K
jakubowski eric
19 Oct 14 03:20:40
RT @R4inb0w_: #Genfit : new patents allowed for #GFT505 in United States and China http://t.co/VkFNfs22OK #Health (via @IBNMoney_com #USA) …
R4inb0w
19 Oct 14 02:03:31
#Genfit : new patents allowed for #GFT505 in United States and China http://t.co/VkFNfs22OK #Health (via @IBNMoney_com #USA) #NASH $ICPT
Stocks News&Markets
18 Oct 14 13:01:01
lx21 made $158,909 on $ICPT -Check it out! http://t.co/SwHWlMUioP Learn #howtotrade http://t.co/axK8SMSgo9 $COCO $HDSN $BIOF $DLIA $LIME
chris lathem
17 Oct 14 17:20:51
I should have tweeted this swing on $ICPT Monday night. ~$50/share profit if sold near today's high. $260ish nxt wk? http://t.co/dqEizDrsoR
Venator
17 Oct 14 13:03:12
$ICPT Appears the magnet of Max Pain (230) got the edge over Harry's fib target (205), this time.
Will
17 Oct 14 11:36:04
Anyone know when $ICPT next catalyst since AASLD is no longer in play?
Tom Wrigley
17 Oct 14 11:14:32
Losing Some Higher Beta (nLod) $PCLN $GOOG $GOOGL $TSLA $MELI $BABA $GWPH $JD $BWLD $WYNN $BLOX $GPRO $ICPT $OVTI $MBLY etc ..
Venator
17 Oct 14 11:01:26
$ICPT Max Pain for maturity 2mrw is 230. http://t.co/EftlVZ9wHZ
Yu Zhu
17 Oct 14 10:25:50
RT @svKatface: Is ok,its Friday, plus $ICPT's delish aroma th past 2days,attracted every swing&day tradr for miles. http://t.co/LKG6oMVyx2
Venator
17 Oct 14 10:12:02
Is ok,its Friday, plus $ICPT's delish aroma th past 2days,attracted every swing&day tradr for miles. http://t.co/LKG6oMVyx2
DOGE4321
17 Oct 14 10:08:15
RT @R4inb0w_: $GNFT #GENFIT : after grant of an American patent for #GFT505 in #NASH, USPTO has allowed patent in hepatic fibrosis (Reuters…
Daniel De Oliveira
17 Oct 14 10:03:01
RT @R4inb0w_: $GNFT #GENFIT : after grant of an American patent for #GFT505 in #NASH, USPTO has allowed patent in hepatic fibrosis (Reuters…
Stocks News&Markets
17 Oct 14 10:01:00
lx21 made $15,427 on $ICPT -Check it out! http://t.co/cIuXaVKgd0 Learn #howtotrade http://t.co/axK8SMSgo9 $BUR $RADA $WLB $IBIO $DLIA
R4inb0w
17 Oct 14 09:57:51
$GNFT #GENFIT : after grant of an American patent for #GFT505 in #NASH, USPTO has allowed patent in hepatic fibrosis (Reuters) $ICPT $GILD
Lauren Holmes
17 Oct 14 09:19:13
$ICPT Possible $250's at lunch time...and $258 closing. For More Detail connect here http://t.co/IhJaUAjPfb
BS
17 Oct 14 09:09:20
RT @R4inb0w_: $GNFT #NASH #Liverdisease Ytd, Oct.16 Publication of research results by #GENFIT : http://t.co/WzrAQqo5hk $ICPT http://t.co/…
				
				
By  +Follow January 14, 2014 12:05PM
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