Reed Research
Biotech, small-cap, long/short equity, special situations

Analysis Of Intercept Pharmaceuticals And OCA's Future Potential

Introduction

Intercept Pharmaceuticals (NASDAQ:ICPT) is developing a first-in-class drug, obeticholic acid (OCA) that modulates bile production to reduce liver stress. Because OCA is a first-in-class drug targeting an orphan disease known as primary biliary cirrhosis (PBC) and appears to be safe and effective, OCA has a high probability of FDA approval. The long-term strategy of ICPT is promising: Piggybacking on the natural properties and bioactivity of bile acids will open doors for ICPT in large chronic disease markets that include metabolic disorders (diabetes/obesity) and heart disease. ICPT's market cap ($1B) is on par with other companies in a similar situation. I am waiting to see the Phase III clinical trial results this quarter and early in 2014 before...

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