Intercept Pharmaceuticals Inc (NASDAQ:ICPT) stock took a hit on Tuesday following the release of a drug warning.
The drug warning that sent ICPT stock down on Tuesday came in the form of a letter sent to physicians. In this letter, the company warns physicians against giving patients overdoses of its drug Ocaliva.
In the letter concerning Ocaliva, Intercept Pharmaceuticals Inc notes that there have been connections between overdosing on the drug and certain liver issues. This includes injuries and death. The drug company recommends dosages of 5 milligrams once per week for some patients with liver impairment.
“Today’s letter/disclosure, in our view, will likely add another layer of caution as physicians may find Ocaliva dosing more cumbersome and patients more reluctant to initiate therapy,” Joseph Schwartz, a Leerink analyst, said in a statement obtained by Investor’s Business Daily.
Schwartz also notes that the warning could open the way for rival drug makers to challenge Intercept Pharmaceuticals Inc’s Ocaliva with their own products. This includes offerings from CymaBay Therapeutics Inc (NASDAQ:CBAY) and Arena Pharmaceuticals, Inc. (NASDAQ:ARNA).
The current average recommendation for Intercept Pharmaceuticals Inc has it holding a “Buy” rating. This is based on the 20 analysts that are covering the stock. There is one “Sell” rating, five “Hold” rating and 13 “Buy” ratings and one “Strong Buy” rating for the stock.
According to the The Ledger Gazette, the average one-year price target for ICPT stock is currently sitting at $193.26. The stock opened on Tuesday at $95. Its closing price on Monday was $113.48.
ICPT stock was down 14% as of noon Tuesday and is down 8% year-to-date. CBAY stock was up 9% as of Noon Thursday and is up 298% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.