ICPT - Why Is Intercept Pharmaceuticals (ICPT) Stock Down 20% Today?
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Today is a big day for Intercept Pharmaceuticals (NASDAQ:ICPT). The company just announced the clinical-trial results of Intercept’s treatment for NASH cirrhosis. Unfortunately, those results didn’t meet the study’s primary endpoint. Consequently, ICPT stock dropped quickly after the opening bell rang today.
Intercept Pharmaceuticals is a biopharmaceutical company that’s based in New York. It develops treatments targeting progressive, non-viral liver diseases. Recently, Intercept advanced a Phase 3 study called REVERSE. This clinical trial’s purpose was to evaluate obeticholic acid (OCA) in patients with compensated cirrhosis due to nonalcoholic steatohepatitis (NASH).
Biopharmaceutical stock traders know that these types of clinical trials can be make-or-break for companies. In the case of REVERSE, so far it’s more “break” than “make” for Intercept Pharmaceuticals.
Disappointingly, the REVERSE study didn’t meet its primary endpoint. Specifically, the unmet goal was “a ? 1-stage histological improvement in fibrosis with no worsening of NASH following up to 18 months of therapy.”
What’s Happening With ICPT Stock?
Today’s traders aren’t particularly pleased with this outcome. They sent ICPT stock 20% lower soon after the trading session commenced.
This might not be the end of the story, though. Intercept Pharmaceuticals assured that it “remains on track to resubmit [a] new drug application (NDA) for OCA in its lead indication of fibrosis due to NASH by year end based on its positive Phase 3 REGENERATE study.”
In other words, where the REVERSE study failed, the REGENERATE study might still succeed. Without a doubt, the medical community is rooting for Intercept to succeed in identifying a successful treatment for cirrhosis due to NASH.
As the company explains, this condition can lead to eventual liver failure, cancer, or even death. It’s a shame that no currently approved medications exist for the treatment of NASH.
So, we can all hope that Intercept Pharmaceuticals meets its primary endpoint in the REGENERATE study. In the meantime, however, ICPT stock is in the red and optimism definitely isn’t the prevailing sentiment on Wall Street.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
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