Those ICPT shareholders must've thought their stock did a reverse split today. :)
I found this blog on Barron's but since Yahoo doesn't allow links, I'll post the entire article instead. It can be found under ICPT headlines.
January 9, 2014, 10:39 A.M. ET
Intercept Pharmaceuticals: Study Success Paves Way to Multi-Billion Market
By Ben Levisohn
It’s not every day a stock more than triples in value like Intercept Pharmaceuticals (ICPT) has, but then again it’s not often a company surprises the market the way Intercept did either.
Intercept Pharmaceuticals reported that it’s drug for liver fibrosis met its primary endpoint and was stopped early. Citigroup’s Jonathan Eckard and team explain the significance:
Buy ICPT: This morning’s announcement that the P2 trial of [Intercept Pharmaceuticals'] lead candidate in liver fibrosis (NASH) met its primary endpoint is a major upside surprise and could make significant upside given it is a multi-billion dollar WW market and there are NO approved drugs. NASH is possibly one of the few remaining large untapped market that we could compare to the LDL or diabetes market and is rapidly growing. We expect very strong trading in [Intercept Pharmaceuticals].
Strong trading is an understatement. Shares of Intercept Pharmaceuticals have gained 270% to 267.74 at 2:05 p.m., and have provided a lift to the biotech sector. The SPDR S&P Biotech ETF (XBI) has gained 6.2% to $143.90, while Conatus Pahrmaceuticals (CNAT)), which is also working in medication for liver disease, has surged 90% to $11.84. Vertex Pharmaceuticals (VRTX) has gained 0.3% to $75.45, and Exelixis (EXEL) is up 1.3% at $7.09.
UPDATE: Janney’s Jim Molloy offers own thoughts on Intercepts success:
This is a very rare event, and a significant positive for the prospects for the drug. Importantly only ~50% of the trial participants had completed the trial. The non-completing half of pati