Looking to Play the Biotech Market? Try Intercept Pharmaceuticals

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By Jacob Maslow

InterceptlogoV2Thanks to the sinking fortunes of its competitor Genfit, liver pharmaceutical company Intercept Pharmaceuticals (NASDAQ:ICPT) may be a great buy. The reason I say “maybe” is because it depends on your budget. This stock is not cheap. Its 52-week range is $128.50-$349.08. Currently, it is trading at around $300. There is a definite upside to this stock.

The reason why it is priced so high is that it is one of the big players in the chronic liver disease market. This is a big market because a lot of alcoholics develop cirrhosis. Moreover, an increasing number of Americans and people worldwide are developing cirrhosis even when they don’t drink. This is due to lifestyle issues.

The reason why its stock is priced so high is that its main drug Obeticholic Acid helped liver histology. Its fortunes in the trial stage are looking really good. If this drug makes it all the way through the regulatory approval process, expect this stock to go even crazier. You might think that paying $300 a pop might be a bit steep right now. I suspect that it is nowhere near the price of Intercept Pharmaceuticals once the FDA approves Obeticholic Acid. It is very exciting indeed. This is definitely one biotechnology stock you really need to read up on before investing in.

Another exciting possibility for this stock is that if its main drug gets very close to final FDA approval, the company might get bought out by a pharma giant in a multibillion dollar deal. You have to remember that many pharma giants routinely buy their way into growth by simply gobbling up smaller biotech companies.

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