Don't let it get away!
Keep track of the stocks that matter to you.
Help yourself with the Fool's FREE and easy new watchlist service today.
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Intercept Pharmaceuticals (NASDAQ: ICPT ) , a biopharmaceutical company developing therapies to treat chronic liver diseases, fell as much as 36%, or $129 per share – it's fourth consecutive intraday move of at least $129 -- following comments made by its CEO called into question the future of its lead drug, obeticholic acid (OCA) for nonalcoholic steathohepatitis (NASH).
So what: Following Intercept's presentation at the JPMorgan Healthcare Conference yesterday, CEO Mark Pruzanski noted that his company may need the assistance of a larger drug maker (i.e., a partner) to help bring OCA to market. This only further complicates what has been a boom-and-bust past week for Intercept which exploded higher by more than 500% at the end of last week following the stoppage of a mid-stage trial for OCA on statistically significant efficacy. Intercept, however, has been slowed by a flat tire this week as cholesterol levels in those patients, specifically the bad kind, saw a marked increase and will need further investigating.
Now what: And I thought the five-day chart made me dizzy yesterday -- you should see it now! There are really a handful of variables at play here includes the safety of OCA as it relates to the increase in lipid levels, the efficacy as it relates to a largely unmet disease that could affect between 5 million and 6 million people in the U.S., and Intercept's need to have a larger pharmaceutical partner share development costs as well as handle an eventual commercial rollout if the drug is approved. In other words, with the share price having moved a minimum of $129 in each of the past four days, your best course of action is likely to stick to the sidelines and to let things settle down first.
Will this top stock leave Intercept in its dust in 2014?
There's a huge difference between a good stock, and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.