10 Updates

Intercept Pharmaceuticals' Above $300 -- More Mega Millions On The Way?

Jan 17 2014, 1:53pm CST | by

Anyone following the stock of Intercept Pharmaceuticals (NASDAQ:ICPT) closely cannot help but get dizzy. After racing from $72 to $497 last week, the stock corrected sharply this week–trading below...

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26 weeks ago

Intercept Pharmaceuticals' Above $300 -- More Mega Millions On The Way?

Jan 17 2014, 1:53pm CST | by

Anyone following the stock of Intercept Pharmaceuticals (NASDAQ:ICPT) closely cannot help but get dizzy. After racing from $72 to $497 last week, the stock corrected sharply this week–trading below $250 early in the week, before recovering nicely to above $300 in the last two days.

Does this mean that the correction is over? Are more mega millions on the way for the company’s shareholders?

We cannot say. What we can say is that this is a highly speculative stock for investors who have faith in the company’s prospects.

Intercept Pharmaceuticals develops innovative treatment for chronic diseases likeobeticholic acid, a bile acid analog (OCA), which is in Phase III clinical trials for the treatment of primary biliary cirrhosis; in Phase IIa clinical trial to treat portal hypertension; in Phase IIb clinical trial for the treatment of nonalcoholic steatohepatitis; and in Phase IIa clinical trial to treat bile acid diarrhea.

That certainly sounds like a very promising compound, and last week it performed unexpectedly well in a clinical trial, sending the company’s stock soaring — as this development makes it very likely that the compound will receive FDA approval.

As one of commentators observed in a previous piece:

“People bid up stock for market potential. Stock trading is speculative in nature and nothing is pure black and white in the Bio-tech world. I think you need to understand some fundamentals of the statistics and clinical trials before you can comment on the likelihood of FDA approval. Currently, what investors perceived is based on 5% type I error rate. The actual error rate is much much smaller than 5%, given the fact that the phase II clinical trial was stopped much earlier than designed.”

Even so, before rushing to buy the stock at these levels, investors should understand three things:

First, we are still talking about a drug that is very likely to win FDA approval, not a drug that has already received approval.

Second, even if OCA passes the FDA test, it must subsequently pass the market test. Investors have to look no further than the fate of Dendreon’s drug PROVENGE and Affymax’s drug OMONTYS, neither of which performed well in market tests.

Third, even if OCA passes both the FDA and the market test, at the current market valuation, the company is valued close to 7 percent of the value of Amgen Inc., which has been around for more than three decades and has several blockbuster stocks in the market.

A valuation such as this makes Intercept Pharmaceuticals hardly a bargain, even if it successfully passes the FDA and the market test. That’s why I’ll still stay away from the stock.

Source: Forbes Business

 
Update
10

6 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

Cambodia's Famous Battambang Circus
KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan R ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

6 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

Collingwood Magpies Training Session
KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken into by robbe ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

6 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

Federal Aviation Administration Bans All US Flights To Israel
KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan Rakyat tod ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

6 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

6 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

INDIA-CHINA-DIPLOMACY-TRADE
PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the southern sta ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

6 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

Government Weekly Cabinet Meeting
KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over R ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

6 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said. ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

6 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

Iskandar Johor Open - Previews
JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an allocation of RM2 ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

6 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

EurAsia Cup presented by DRB-HICOM - Day One
PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Bazaar Sc ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

7 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

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