Why Intercept Pharmaceuticals Stock Shed 19% of Its Value in the First Six Months of 2021

Shares of the small-cap biotech Intercept Pharmaceuticals (NASDAQ: ICPT) sank by a noteworthy 19% during the first six months of 2021, according to data from S&P Global Market Intelligence. The biotech's stock has slumped this year due mainly to the fallout from the U.S. Food and Drug Administration's (FDA) complete response letter for obeticholic acid's (OCA) proposed label expansion as a treatment for nonalcoholic steatohepatitis (NASH) in 2020.

OCA is currently approved as a treatment for a liver disorder known as primary biliary cholangitis (PBC) and sold under the brand name Ocaliva. Unfortunately, the FDA dealt Ocaliva another major blow this year by restricting its use in PBC patients with advanced cirrhosis due to the risk of serious liver injury.

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Source Fool.com