Why Intercept Pharmaceuticals, Health Insurance Innovations, and Investors Real Estate Trust Slumped Today
Tuesday was another positive day on Wall Street, with major benchmarks adding to their gains from Monday. A lack of bad news from North Korea and in-line damage estimates from Hurricane Irma's path of destruction combined to make investors more optimistic about the long-term future for stocks, and shares have thus far weathered what is typically a volatile season for the financial markets without anything more than minor pullbacks. That hasn't kept some individual stocks from suffering losses as a result of bad news at a company-specific level, however. Intercept Pharmaceuticals (NASDAQ: ICPT), Health Insurance Innovations (NASDAQ: HIIQ), and Investors Real Estate Trust (NYSE: IRET) were among the wort performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Shares of Intercept Pharmaceuticals dropped 13.5% after the biotechnology company sent out a letter to medical professionals regarding its Ocaliva treatment for a rare liver disease known as primary biliary cholangitis. The letter urged doctors and other healthcare providers to follow the dosing schedule for the drug that the U.S. Food and Drug Administration has approved, emphasizing the negative side effects that can occur if the drug is given more frequently or in larger dosages than approved. In addition, Intercept's chief medical officer said that providers should "exercise a low threshold for drug discontinuation or interruption," and that spooked investors who were already nervous about Ocaliva's safety profile.
Image source: Intercept Pharmaceuticals.
Source: Fool.com
