NEW YORK (TheStreet) -- Shares of Intercept Pharmaceuticals (ICPT) - Get Report are up by 4.75% to $148.50 on heavy trading volume Tuesday afternoon, as the New York City-based biopharmaceutical company's chronic liver disease drug has received accelerated approval from the FDA.
The drug, Ocaliva, is meant for adults with primary biliary cholangitis who have had an inadequate response to an alternative treatment, ursodeoxycholic acid.
Ocaliva works in combination with ursodeoxycholic acid, which is the only other approved treatment for primary biliary cholangitis. But ursodeoxycholic acid isn't effective in as many as 40% of patients, and between 5% and 10% of the patients don't tolerate the treatment, according to MarketWatch.
About 1.27 million shares of Intercept Pharma have been traded so far today, well above the company's average trading volume of 375,697 shares per day.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
Intercept Pharma's weaknesses include its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: ICPT
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.