Intercept Pharmaceuticals (ICPT) shares ended the last trading session 15% higher at $15.20. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock’s 18% loss over the past four weeks.
The sudden soaring of stock prices can be attributed to the positive momentum built around Intercept’s new drug application (NDA) for obeticholic acid (OCA) as a treatment for pre-cirrhotic liver fibrosis due to nonalcoholic steatohepatitis (NASH). The company reported on Monday that the Gastrointestinal Drugs Advisory Committee of the FDA will be discussing the NDA for OCA on May 19, 2023. A positive opinion of the committee is likely to be considered by the FDA while making its decision on the same. The FDA’s decision on the NDA for OCA is expected on June 22, 2023. However, the timeline for review of the NDA by the FDA remains subject to change.
This drugmaker is expected to post quarterly loss of $0.57 per share in its upcoming report, which represents a year-over-year change of +1.7%. Revenues are expected to be $73.14 million, down 17.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Intercept, the consensus EPS estimate for the quarter has been revised 1.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ICPT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
Intercept is part of the Zacks Medical – Biomedical and Genetics industry. Seer, Inc. (SEER), another stock in the same industry, closed the last trading session 0.3% higher at $3.73. SEER has returned -14.1% in the past month.
Seer, Inc.’s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.37. Compared to the company’s year-ago EPS, this represents a change of +2.6%. Seer, Inc. currently boasts a Zacks Rank of #3 (Hold).
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