Why Intercept Pharmaceuticals Stock Is Crashing Today
Intercept Pharmaceuticals (NASDAQ: ICPT) is starting the week on a sour note. The drugmaker's shares dropped by as much as 38% in pre-market trading Monday morning in response to the Food and Drug Administration's decision to reject obeticholic acid (OCA) as a treatment for liver fibrosis stemming from nonalcoholic steatohepatitis (NASH).
The FDA's denial reportedly centered around OCA's predicted clinical benefit relative to its potential risks. The agency apparently wanted a well-defined (and highly favorable) risk-to-reward ratio in order to approve the drug on an accelerated basis. As of 9:57 a.m. EDT on Monday, the biotech's shares were still down by a whopping 37.9% in the wake of this disappointing regulatory outcome.
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Source Fool.com
