Intercept Pharmaceuticals Tumble On Safety Concern Allegations

Intercept Pharmaceuticals ICPT were slaughtered down to $215, a 17.3 percent drop, but are now recovering after Adam Feuerstein of The Street said government scientists are concerned about safety of the drug.

The company’s stock is up more than 280 percent this year, despite pulling back from $497 to $260 during last month’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 are currently trading down 6.73 percent in Tuesday’s pre-market to $242.49.