Intercept Pharmaceuticals Inc: What Goes Up Must Come Down

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Intercept Pharmaceuticals has gone on an unprecedented run. It nearly quadrupled on Thursday before adding another 60% on Friday, to become a two-day six-bagger. This all happened after lead drug candidate OCA had a trial halted because the drug was working so well in patients with NASH, a disease with no approved treatments and a leading cause of liver failure.

However, what goes up must come down -- at least a little.

Shares of Intercept fell about 20% today. This isn't just a story of investors who are taking a cold shower over the weekend and taking profits Monday. Potentially concerning data came out from the company's groundbreaking phase 2 trial, and Intercept's CEO threw a wet blanket on bullish investors by suggesting a partnership.


Watch as Motley Fool health-care analyst David Williamson discusses why the new data raised red flags for investors, why the CEO's comments were poorly received, and why Intercept is such a risky, but potentially incredibly rewarding, stock.

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The article Intercept Pharmaceuticals Inc: What Goes Up Must Come Down originally appeared on Fool.com.

David Williamson has no position in any stocks mentioned. Follow David on Twitter: @MotleyDavid.The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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