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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
Woll Street
20 Nov 14 17:30:42
Bio stocks feel heavy here... may get short term pullback soon... $JAZZ $GILD $ICPT $BIIB etc... $CELG looks ok still..
Peter Green
20 Nov 14 14:46:29
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BS
20 Nov 14 14:21:11
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R4inb0w
20 Nov 14 14:16:53
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PennyStock Zone
20 Nov 14 13:28:44
http://t.co/T85aibNIkd <-- InvestorsLive DVD Tandem Trader looks good! free preview. $RIG $SHLD $ICPT $RMTI
Mehrdad Ketabchi
20 Nov 14 09:54:06
Sold $icpt
wayne
20 Nov 14 09:37:00
$ICPT out this morning at 157.2
GPI
20 Nov 14 09:30:30
$icpt speculative buying here, tgt $165
The Legacy News
20 Nov 14 08:45:44
Insider Selling: Intercept Pharmaceuticals CMO Sells 4,790 Shares of Stock $ICPT http://t.co/cccBAsXuvK
InsiderTradingWire
20 Nov 14 07:30:10
$ICPT | Intercept Pharmac is down 47% since we reported $33,161,087 of insider selling on 08/28/2014. Did you ... - http://t.co/zMruEdUuJi
Jim
20 Nov 14 07:18:48
RT @R4inb0w_: $GILD #NASH Gilead pays $125M for an FDA priority review voucher: faster FDA approval of any type of drug http://t.co/bedNpOL…
Mehrdad Ketabchi
20 Nov 14 06:40:51
Bought $icpt
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20 Nov 14 06:38:20
http://t.co/T85aibNIkd <-- InvestorsLive DVD Tandem Trader looks good! free preview. $RIG $SHLD $ICPT $RMTI
Cisc@
20 Nov 14 06:20:57
RT @agoraphile38: Intercept Pharmaceuticals Inc (NASDAQ:ICPT) Under Investigation over Possible Securities Laws Violations http://t.co/voSd…
lololebreton
20 Nov 14 06:16:51
RT @agoraphile38: Intercept Pharmaceuticals Inc (NASDAQ:ICPT) Under Investigation over Possible Securities Laws Violations http://t.co/voSd…
Daniel De Oliveira
20 Nov 14 06:09:39
RT @agoraphile38: Intercept Pharmaceuticals Inc (NASDAQ:ICPT) Under Investigation over Possible Securities Laws Violations http://t.co/voSd…
Red Acre Investments
20 Nov 14 05:57:39
https://t.co/hPx0C9wy2B Video #2 is live now. Free video Training Only Available for a limited time. $IBB $XBI $ACAD $ADHD $SRPT $ICPT
Patrick
20 Nov 14 05:24:33
RT @NathanAhron: $icpt insiders continue to sell down here (via 10b51)
NathanAaron
20 Nov 14 05:08:44
$icpt insiders continue to sell down here (via 10b51)
seb hg
20 Nov 14 04:48:19
RT @R4inb0w_: $GILD #NASH Gilead pays $125M for an FDA priority review voucher: faster FDA approval of any type of drug http://t.co/bedNpOL…
Cisc@
20 Nov 14 04:37:35
RT @R4inb0w_: $GILD #NASH Gilead pays $125M for an FDA priority review voucher: faster FDA approval of any type of drug http://t.co/bedNpOL…
InsiderTradingWire
20 Nov 14 04:02:22
David Shapiro, CMO and EVP - Development of Intercept Pharmac Sells $719,130 Worth of $ICPT - #Form4 ... - http://t.co/FhiURh06qe
PennyStock Zone
20 Nov 14 03:43:47
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Carine
20 Nov 14 03:23:09
RT @R4inb0w_: $GILD #NASH Gilead pays $125M for an FDA priority review voucher: faster FDA approval of any type of drug http://t.co/bedNpOL…
R4inb0w
20 Nov 14 02:43:24
$GILD #NASH Gilead pays $125M for an FDA priority review voucher: faster FDA approval of any type of drug http://t.co/bedNpOLLYc $ICPT $GNFT
Agora Phile
19 Nov 14 23:54:28
Intercept Pharmaceuticals Inc (NASDAQ:ICPT) Under Investigation over Possible Securities Laws Violations http://t.co/voSdIheVoE $ICPT $GNFT
WKRB News
19 Nov 14 20:49:21
Insider Selling: David Shapiro Unloads 4,790 Shares of Intercept Pharmaceuticals Stock $ICPT http://t.co/QAoEpgoha1
PennyStock Zone
19 Nov 14 20:45:18
http://t.co/T85aibNIkd <-- InvestorsLive DVD Tandem Trader looks good! free preview. $RIG $SHLD $ICPT $RMTI
US Banking News
19 Nov 14 20:42:36
Intercept Pharmaceuticals CMO David Shapiro Sells 4,790 Shares $ICPT http://t.co/GSRxrBXvE0
Insider Filings
19 Nov 14 18:02:18
$ICPT: Shapiro David sold a net $719,130 in INTERCEPT PHARMACEUTICALS INC. http://t.co/XiqrSfGrGf
Chayton Falke
19 Nov 14 16:45:05
Top Twenty Recent Exits #7: Covered $ICPT short for a 36.04% gain in 10 days. #trading #ICPT #forex #stocks
PennyStock Zone
19 Nov 14 16:14:58
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James P Worthy
19 Nov 14 14:01:35
$ICPT Intercept Pharmaceuticals Below $180: Mega Millions Vanish http://t.co/eGHAZPO9wv
Venator
19 Nov 14 12:55:13
for perspective, NFLX and TSLA are down more % than $ICPT - bad day for 'names'. The ambulance chasers are out in #.
MaryEllen
19 Nov 14 12:08:41
"@Quads: Get your buy buttons warmed up... Look for those most oversold.. $TSLA $NFLX $PCLN $ICPT"
Zach Neiman
19 Nov 14 11:34:37
@HedgeBound are you long shares or options on $ICPT?
Jim
19 Nov 14 07:41:40
RT @biotechbulls: "@SortaLegendary: $GILD http://t.co/dCMmFTXbSM" $ICPT $GNVC
D
19 Nov 14 07:04:10
$770? Did Caledonia mistake $Z for $ICPT?
Biotech Bulls
19 Nov 14 07:00:41
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Chayton Falke
19 Nov 14 06:45:07
Top Twenty Recent Exits #7: Covered $ICPT short for a 36.04% gain in 10 days. #trading #ICPT #forex #stocks
James DiPlata
19 Nov 14 06:20:57
RT @IOOptionsTrades: Critical Alerts for $JASO, $TWOU, $T, $MBLY and $ICPT from InvestorsObserver today: http://t.co/SEP4mZpSLf #OptionsTra…
James DiPlata
19 Nov 14 06:20:57
RT @JulianClose_MIC: Critical Alerts for $JASO, $TWOU, $T, $MBLY and $ICPT from InvestorsObserver today: http://t.co/MlP0MKM33j #OptionsTra…
Investors Observer
19 Nov 14 06:20:28
Critical Alerts for $JASO, $TWOU, $T, $MBLY and $ICPT from InvestorsObserver today: http://t.co/SEP4mZpSLf #OptionsTrading #CoveredCalls
Julian Close
19 Nov 14 06:20:28
Critical Alerts for $JASO, $TWOU, $T, $MBLY and $ICPT from InvestorsObserver today: http://t.co/MlP0MKM33j #OptionsTrading #CoveredCalls
4-traders.com
19 Nov 14 05:50:03
Intercept Pharmaceuticals : NASDAQ:ICPT) Under Investigation over Possible Securities Laws Violations (Inve... http://t.co/OYs3Q2olox $ICPT
TooTiX
19 Nov 14 03:23:12
RT @R4inb0w_: #NASH competition : update of an Interesting chart of #GENFIT vs Others (1Y) #GFT505 $GNFT $ICPT $GILD http://t.co/rCYKALcFmv
Cisc@
19 Nov 14 02:34:31
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Agora Phile
19 Nov 14 01:53:01
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TickerChirp
19 Nov 14 01:44:10
Trending in Twitter About $ICPT (Intercept Pharma Inc symbol ICPT) on 11/19/2014 http://t.co/R6PJhMC3j5
Thomas F.R.
19 Nov 14 01:34:58
RT @R4inb0w_: #NASH competition : update of an Interesting chart of #GENFIT vs Others (1Y) #GFT505 $GNFT $ICPT $GILD http://t.co/rCYKALcFmv
				
				
By  +Follow January 14, 2014 12:05PM
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