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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. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for icpt
Chris Ahlstrand
1 Apr 15 06:29:58
top 9 performing stocks >2bn mkt cap in 1stQ: $ESPR, $PCYC, $HZNP, $ASPX, $ANAC, $ABMD, $ICPT, $NBIX, $XON something similar about them...
tom blanc
1 Apr 15 06:29:00
@adamfeuerstein @SeekingAlpha FDA so angry with $ICPT perche Bias :hidden? FDA knew #GFT505 bias
deba
1 Apr 15 06:28:36
RT @Carine1111111: $ICPT$GNFTF $GENFIT http://t.co/en4mnQvedE http://t.co/OYviyVR7LZ
deba
1 Apr 15 06:27:58
RT @Carine1111111: $ICPT $GENFIT $GNFT #OCA #GFT505 #FLINT $GILD $CNAD @okim59 @GENFIT #GNFT http://t.co/ISmhhhwi0K
$SDRL
1 Apr 15 05:49:00
#sentishiftdown $BP $UWTI $NFLX $SDLP $CELG $ICPT $GOOGL $AAL $SDRL $CAC #sentiquant 20150401 08:00:05:852 … … … http://t.co/EETe7rsFZk
Biotech
1 Apr 15 05:35:07
RT @Carine1111111: $GNFTF $ICPT $GENFIT #GFT505 #FLINT @GENFIT http://t.co/unnpJLP6Qm http://t.co/EjsX37AnFd
Biotech
1 Apr 15 05:34:43
RT @Carine1111111: $ICPT $GENFIT $GNFT #OCA #GFT505 #FLINT $GILD $CNAD @okim59 @GENFIT #GNFT http://t.co/UOMlY5lcNH http://t.co/AcAKpXA1dN
$SDRL
1 Apr 15 05:32:10
#sentishiftdown $BP $UWTI $NFLX $SDLP $CELG $ICPT $GOOGL $AAL $SDRL $CAC #sentiquant 20150401 08:00:05:852 … … http://t.co/EETe7rsFZk
TooTiX
1 Apr 15 05:31:26
RT @Carine1111111: $GNFTF $ICPT $GENFIT #GFT505 #FLINT @GENFIT http://t.co/unnpJLP6Qm http://t.co/EjsX37AnFd
Cisc@
1 Apr 15 05:22:08
RT @Carine1111111: $GNFTF $ICPT $GENFIT #GFT505 #FLINT @GENFIT http://t.co/unnpJLP6Qm http://t.co/EjsX37AnFd
Carine
1 Apr 15 05:20:15
$GNFTF $ICPT $GENFIT #GFT505 #FLINT @GENFIT http://t.co/unnpJLP6Qm http://t.co/EjsX37AnFd
ADAM Michaël
1 Apr 15 05:18:34
@adamfeuerstein @okim59: $ICPT...Federal Judge Denies Intercept Pharmaceutical's Motion to Dismiss in Investor Suit http://t.co/3TiroqLB2m
je suis genfit
1 Apr 15 05:16:44
RT @Carine1111111: $ICPT $GENFIT $GNFT #OCA #GFT505 #FLINT $GILD $CNAD @okim59 @GENFIT #GNFT http://t.co/ISmhhhwi0K
$SDRL
1 Apr 15 05:16:32
#sentishiftdown $BP $UWTI $NFLX $SDLP $CELG $ICPT $GOOGL $AAL $SDRL $CAC #sentiquant 20150401 08:00:05:852 … http://t.co/EETe7rsFZk
je suis genfit
1 Apr 15 05:06:01
RT @Carine1111111: $ICPT $GENFIT $GNFT #OCA #GFT505 #FLINT $GILD $CNAD @okim59 @GENFIT #GNFT http://t.co/UOMlY5lcNH http://t.co/AcAKpXA1dN
Carine
1 Apr 15 05:02:48
$ICPT $GENFIT $GNFT #OCA #GFT505 #FLINT $GILD $CNAD @okim59 @GENFIT #GNFT http://t.co/UOMlY5lcNH http://t.co/AcAKpXA1dN
$SDRL
1 Apr 15 05:01:06
#sentishiftdown $BP $UWTI $NFLX $SDLP $CELG $ICPT $GOOGL $AAL $SDRL $CAC #sentiquant 20150401 08:00:05:852 http://t.co/EETe7rsFZk
Sentiquant
1 Apr 15 04:59:55
#sentishiftdown $BP $UWTI $NFLX $SDLP $CELG $ICPT $GOOGL $AAL $SDRL $CAC #sentiquant 20150401 08:00:05:852
seraiche tayeb
1 Apr 15 04:59:41
RT @Carine1111111: $ICPT $GENFIT $GNFT #OCA #GFT505 #FLINT $GILD $CNAD @okim59 @GENFIT #GNFT http://t.co/ISmhhhwi0K
Carine
1 Apr 15 04:57:30
RT @2ubb2ubb: $GNFT #Genfit On the road to Subpart H VS $ICPT Legal Proceedings #FDA very suspicous about hidden&tampered results!A sort of…
PatAubagne
1 Apr 15 04:56:05
RT @2ubb2ubb: $ICPT The Crime Does Not Pay:hidden&tampered results !!VS!! $GNFT Patients deserve honesty! No Trickery at all! Scientific St…
Hung Tran, MS, MD
1 Apr 15 04:55:09
I learned alot from $ICPT, cardiology and the "Alternative Hypothesis" from OCA ... but the boy is secondary to MNKD https://t.co/ogeOUI8m4G
2ubb
1 Apr 15 04:53:27
$ICPT The Crime Does Not Pay:hidden&tampered results !!VS!! $GNFT Patients deserve honesty! No Trickery at all! Scientific Strictness!
GROSSE14
1 Apr 15 04:50:25
RT @GeryDIVRY: if $GNFT is a bubble , $ICPT should be the #Hindenburg http://t.co/u2HfNmmetM
GROSSE14
1 Apr 15 04:50:01
RT @Logribel: @adamfeuerstein $GNFTF $ICPT Hey Adam, haven't heard from you yet! Meanwhile, here are factual errors #3 & #4. Enjoy! http://…
GROSSE14
1 Apr 15 04:49:05
RT @2ubb2ubb: $GNFT #Genfit On the road to Subpart H VS $ICPT Legal Proceedings #FDA very suspicous about hidden&tampered results!A sort of…
Carine
1 Apr 15 04:48:21
$ICPT $GENFIT $GNFT #OCA #GFT505 #FLINT $GILD $CNAD @okim59 @GENFIT #GNFT http://t.co/ISmhhhwi0K
Ruelle Tony
1 Apr 15 04:46:22
RT @2ubb2ubb: $GNFT #Genfit On the road to Subpart H VS $ICPT Legal Proceedings #FDA very suspicous about hidden&tampered results!A sort of…
Cisc@
1 Apr 15 04:45:27
RT @2ubb2ubb: $GNFT #Genfit On the road to Subpart H VS $ICPT Legal Proceedings #FDA very suspicous about hidden&tampered results!A sort of…
TooTiX
1 Apr 15 04:42:04
RT @2ubb2ubb: $GNFT #Genfit On the road to Subpart H VS $ICPT Legal Proceedings #FDA very suspicous about hidden&tampered results!A sort of…
emmanuel
1 Apr 15 04:39:33
RT @Tootix: Chairman of the Board SILVERSTEIN JONATHAN Sells $45.1M of $ICPT on 3/26/15. To buy $GNFT shares ?
Nicolas L
1 Apr 15 04:38:56
RT @2ubb2ubb: $GNFT #Genfit On the road to Subpart H VS $ICPT Legal Proceedings #FDA very suspicous about hidden&tampered results!A sort of…
PatAubagne
1 Apr 15 04:38:11
RT @2ubb2ubb: $GNFT #Genfit On the road to Subpart H VS $ICPT Legal Proceedings #FDA very suspicous about hidden&tampered results!A sort of…
emmanuel
1 Apr 15 04:36:20
RT @Tootix: Morning Meeting: The Truth about #Genfit in French of course my American friends :) http://t.co/qyMZ0qF8Qs #JeSuisGenfit $ICPT …
Don Fishback
1 Apr 15 04:23:26
1 Week Decrease in ATM IV (Point change) $ACM, $SONS, $FIVE, $ICPT, $FRAN http://t.co/2a89JBwX9U
OptionApps
1 Apr 15 04:23:25
1 Week Decrease in ATM IV (Point change) $ACM, $SONS, $FIVE, $ICPT, $FRAN http://t.co/SHDoMv1G1p
2ubb
1 Apr 15 04:23:15
$GNFT #Genfit On the road to Subpart H VS $ICPT Legal Proceedings #FDA very suspicous about hidden&tampered results!A sort of revenge!Yeah!
Neetram
1 Apr 15 03:52:27
RT @nlaurent191: @TerryMSmith so can everybody give them a break and let them prove their worth or fail? I don't care about stock price or …
Arthur Jeannerot
1 Apr 15 03:43:35
RT @Tootix: Awesome results for #GFT505 confirmed by KOL and specialists !! Subpart-H for P3 very likely given this summer by the #FDA !! $…
Breaking News Now
1 Apr 15 03:40:04
$MOV $ICPT: Investor Alerts- Movado Group, Inc. (NYSE:MOV), Synchrony ...: http://t.co/9DOWmifw16
niko19
1 Apr 15 03:27:49
@TerryMSmith so can everybody give them a break and let them prove their worth or fail? I don't care about stock price or $gnft / $icpt war
TooTiX
1 Apr 15 03:22:26
Morning Meeting: The Truth about #Genfit in French of course my American friends :) http://t.co/qyMZ0qF8Qs #JeSuisGenfit $ICPT $GNFT
Escande Renaud
1 Apr 15 03:16:56
RT @Logribel: @Sachakin Jonathan Silverstein, le président du conseil de $ICPT a vendu pour 100 million de titres en 4 jours http://t.co/VM…
TooTiX
1 Apr 15 03:07:37
Awesome results for #GFT505 confirmed by KOL and specialists !! Subpart-H for P3 very likely given this summer by the #FDA !! $GNFT $ICPT
Carine
1 Apr 15 03:03:43
@GENFIT $GENFIT $GNFTF $ICPT $GILD http://t.co/ztlU8V9pza
Bleecker
1 Apr 15 02:29:36
@hacaira @Sachakin non, vente massive $ICPT pour racheter du $GNFT . très bons les ricains...
Hades
1 Apr 15 01:42:59
RT @Logribel: @adamfeuerstein $GNFTF $ICPT Hey Adam, haven't heard from you yet! Meanwhile, here are factual errors #3 & #4. Enjoy! http://…
Bleecker
1 Apr 15 01:29:44
RT @Logribel: @adamfeuerstein $GNFTF $ICPT Hey Adam, haven't heard from you yet! Meanwhile, here are factual errors #3 & #4. Enjoy! http://…
Carine
1 Apr 15 01:07:06
RT @Logribel: @adamfeuerstein $GNFTF $ICPT Hey Adam, haven't heard from you yet! Meanwhile, here are factual errors #3 & #4. Enjoy! http://…
Cigale Genfit
1 Apr 15 01:05:58
RT @Logribel: @adamfeuerstein $GNFTF $ICPT Hey Adam, haven't heard from you yet! Meanwhile, here are factual errors #3 & #4. Enjoy! http://…
				
				
By  +Follow January 14, 2014 12:05PM
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