Usually, if a study stops early that’s not a good thing, but when a study is stopped early because it’s doing so GOOD it’s already met its targets, then that’s a very GOOD thing.
And that’s what happened with Intercept Pharmaceuticals (ICPT) new drug to fight liver disease, or non-alcoholic steatohepatitis (NASH), the study met it’s trial targets and the testing was stopped. What happened to Intercept Pharmaceuticals stock, it skyrocketed higher, going from around $70 a share to well over $400. At one point the stock traded to almost $500. That’s almost a 600% gain in less than a week. It also helps that there aren’t other drugs to fight this type of liver disease except eating healthier and losing weight, but who wants to do that. The new drug is called obeticholic acid, or OCA.
Furthermore, it helps to get upgrades after such positive testing, like this one from Bank of America Merrill Lynch, who raised their price target to $872, before Bank of America’s price target was just $81. So that means the stock is set to double from its current price of around $455. We’ll see.
But this get to why Intercept Pharmaceuticals makes the stock market so tempting. Because you start to say, what if I owned Intercept’s stock when it went public, at $15 a share. Wow. There must be other stock out there like this one. I won’t to get in on this stock market game.
However, while the positive trial testing for their new liver drug is just that, a trial. The drug isn’t on the market and hasn’t even been approved by the FDA. In other words, it’s still very early, I mean very early. The company hasn’t made any money yet and the drug isn’t on the market. But who cares, the allure of a skyrocketing stock is too much to pass up. It’s just too tempting not to look around the stock market and say, where’s the next Intercept Pharmaceuticals. Yeah, people get greedy.