Stock Update (NASDAQ:ICPT): Intercept Pharmaceuticals Inc Announces Proposed Offering of Common Stock


Intercept Pharmaceuticals Inc (NASDAQ:ICPT) (Intercept), a clinical stage biopharmaceutical company focused on the development and commercialization of novel therapeutics to treat neglected chronic liver diseases, today announced that it is commencing an underwritten public offering of 1,200,000 shares of its common stock. All of the shares in the offering are to be sold by Intercept. The underwriters intend to offer the shares of common stock from time to time for sale in one or more transactions on The Nasdaq Global Select Market, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices. Intercept intends to grant the underwriters a 30-day option to purchase up to an additional 180,000 shares of common stock, on the same terms and conditions.

Intercept intends to use the net proceeds of this offering to support the expansion of its clinical, regulatory, medical affairs and commercial infrastructure in the United States and Europe, the clinical development program for obeticholic acid (OCA) in primary biliary cirrhosis (PBC), nonalcoholic steatohepatitis (NASH) and primary sclerosing cholangitis (PSC), the expansion of OCA manufacturing activities, advancement of INT-767 and other preclinical pipeline programs, and the preparation for and potential initiation of the commercial launch of OCA in PBC in the United States and certain European countries in 2016. The balance, if any, will be used for general corporate purposes.

UBS Investment Bank and Citigroup are acting as underwriters in the offering.

A preliminary prospectus supplement relating to the offering has been filed with the Securities and Exchange Commission (the SEC). Copies of the preliminary prospectus supplement may be obtained from the offices of UBS Investment Bank c/o Prospectus Department, 1285 Avenue of the Americas, New York, New York 10019, or by calling 1-888-827-7275; or Citigroup c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, via telephone at 1-800-831-9146 or email at prospectus@citi.com. The final terms of the offering will be disclosed in a final prospectus supplement to be filed with the SEC.

The securities described above are being offered pursuant to an automatically effective shelf registration statement on Form S-3 previously filed by Intercept with the SEC. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction. (Original Source)

Shares of Intercept closed yesterday at $295.91 . ICPT has a 1-year high of $349.08 and a 1-year low of $128.50. The stock's 50-day moving average is $249.30 and it's 200-day moving average is $205.05.

On the ratings front, Intercept has been the subject of a number of recent research reports. In a report issued on March 27, MLV & Co. analyst Vernon Bernardino maintained a Hold rating on ICPT, with a price target of $273, which implies a downside of 7.7% from current levels. Separately, on the same day, Deutsche Bank's Alethia Young maintained a Buy rating on the stock and has a price target of $400.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Vernon Bernardino and Alethia Young have a total average return of -8.0% and 17.5% respectively. Bernardino has a success rate of 40.0% and is ranked #3420 out of 3560 analysts, while Young has a success rate of 67.5% and is ranked #414.

The street is mostly Bullish on ICPT stock. Out of 14 analysts who cover the stock, 12 suggest a Buy rating and 2 recommend to Hold the stock. The 12-month average price target assigned to the stock is $416.43, which implies an upside of 40.7% from current levels.

Intercept Pharmaceuticals Inc is a biopharmaceutical company. The Company is engaged in the development and commercialization of novel therapeutics to treat chronic liver disease utilizing its proprietary bile acid chemistry.

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