Intercept Pharmaceuticals Inc (NASDAQ: ICPT)
Intercept Pharmaceuticals is having an incredible day in the market today, and for good reason. The company has been working on a treatment for the liver, and an FDA review board came back with some incredible news. Today, we’ll talk about the details of the news, how the market is reacting, and what we can expect to see from ICPT moving forward. So, let’s get right to it…
ICPT Receives Great News From The FDA
As mentioned above, Intercept has been working on a liver drug where obeticholic acid is used as a therapy for patients that don’t respond to normal treatment. At this point, the treatment is still in the early phases of development. However, the FDA has released some incredibly positive news with regard to it. Recently, the FDA has been running an independent review of the treatment in an attempt to see if it is effective and safe. Here’s the release the popular website, Reuters, with regard to the strong news from the FDA…
“The U.S. Food and Drug Administration’s staff reviewers on Tuesday supported the use of Intercept Pharmaceuticals Inc’s liver drug as a monotherapy in patients who did not respond to standard-of-care treatment. The drug, obeticholic acid, is being reviewed for use in patients with primary biliary cirrhosis, a rare liver disease resulting from an autoimmune destruction of the bile ducts. The FDA staff reviewers said they were unable to assess the drug’s safety in more severely affected patients and recommended a less frequent starting dose for such patients. A panel of outside advisers to the FDA scheduled to meet on Thursday to vote on the drug. The FDA is not obliged to follow the advise of its advisory panels but it usually does so.”
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How The Market Reacted To The News
One of the first lessons that investors learn early on is that the news moves the market. Ultimately, any time news is released with regard to a publicly traded company, we can expect to see movement in the value of that company’s stock as a result. When the news is positive, the movement we see in the stock is positive. Adversely, negative news will generally cause negative movement. Today’s news with regard to the liver drug that ICPT is working on was incredibly positive news. As a result, we’re seeing incredibly positive movement in the value of the stock today. Yesterday, the stock climbed to $163.83 per share after a gain of $12.52 per share or 8.27% on the trading session. Those gains are continuing today. Currently (12:00), ICPT is trading at $173.00 per share after a gain of $9.17 per share or 5.60% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from ICPT. The reality is that the news released from the FDA was overwhelmingly positive news. As a result of the news, I’m expecting that the liver drug the company is working on will eventually be approved, leading to another treatment in the ICPT repertoire. When we talk about Intercept, we’re talking about a company that has a long list of solid products, several products in its pipeline, a strong team and a clear plan for growth. Considering these factors, I’m expecting to see positive movement moving forward.
What Do You Think?
Where do you think ICPT is headed moving forward? Let us know your opinion in the comments below!