Intercept Pharmaceuticals Tumbles On Safety Concern Allegations
Intercept Pharmaceuticals (NASDAQ: ICPT) shares were trading in the red Tuesday morning.
The stock traded down to $215, a 17.3 percent drop after Adam Feuerstein of The Street said government scientists are concerned about the safety of the drug. However, the stock began a recovery shortly thereafter.
The company’s stock is up more than 280 percent this year, despite pulling back from $497 to $260 during April’s pharmaceutical meltdown. The company’s jump in price is the result of strong early results from the company’s liver disease study.
Despite the early positive results, according to The Street, the drug causes lipid abnormalities. Furthermore, the National Institute of Diabetes and Digestive and Kidney Diseases (NIDDK) has asked the company to stop trials of the drug. NIDDK indicates that the trial trials are being stopped because efficacy has been reached along with the negative health effects.
Worse, the company was contacted about the lipid abnormalities at the beginning of the year, but chose not to disclose the information, claiming the company is uncertain of the statistical significance.
Shares of Intercept Pharmaceuticals traded down 5.12 percent to $246.70 during the premarket session and after market open, shares traded down over seven percent to $241.66.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.