A press release from the biopharmaceutical company covers several recent transactions. These actions allowed the company to increase its cash position to more than $500 million while also reducing net debt to $336.3 million.
Intercept Pharmaceuticals started down this path with its Secured Convertible Notes Exchange in August 2021. It then made further progress with the sale of its international business in July 2022. Finally, the company repurchased a large sum of convertible senior notes in August and September of this year.
All of this allowed Intercept to reduce its outstanding debt by 54%, or $388.9 million, to its current level. This marks the first time the company has been net debt positive since 2019.
What Does the Future Hold for ICPT Stock?
Jerry Durso, President and CEO of Intercept Pharmaceuticals, said the following about the news:
“This is a transformational time on several fronts here at Intercept […] Now, through this series of strategic financial transactions, we have transformed our capital structure and are well positioned for the future. We […] have the financial flexibility to propel our business forward focusing on our core strategic imperatives of growing our PBC franchise, progressing our NASH development program, and advancing our pipeline products.”
ICPT stock is down 14.5% as of Wednesday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.