Why Intercept Pharmaceuticals Is Sinking Again Today

As of 2:42 p.m. EDT Friday, shares of Intercept Pharmaceuticals (NASDAQ: ICPT) are down by over 14% on heavier than normal volume. The drugmaker's shares are tumbling as the result of analysts chiming in on the U.S. Food and Drug Administration's (FDA) warning letter issued Thursday stating that incorrect dosing of the primary biliary cholangitis (PBC) medicine, Ocaliva, could increase the risk of liver injury and death.

Wells Fargo, for instance, slashed their 12-month price target on Intercept from $265 to a mere $95 on fears that a dreaded "black-box warning" -- the most severe type the FDA can issue -- is coming down the pike following 19 patient deaths that appear to stem from Ocaliva-induced liver damage.

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Source: Fool.com