Pomerantz LLP announces that a class action lawsuit has been filed against Intercept Pharmaceuticals, Inc. (“Intercept” or the “Company”) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 17-cv-07371, is on behalf of a class consisting of investors who purchased or otherwise acquired Intercept securities, seeking to recover compensable damages caused by defendants’ violations of the Securities Exchange Act of 1934.
Intercept Pharmaceuticals, Inc. manufactures and markets biopharmaceutical products. The Company focuses on the development and commercialization of therapeutics to treat chronic liver diseases utilizing proprietary bile acid chemistry. The Company’s lead product candidate, Ocaliva (obeticholic acid, or OCA), is a bile acid analog, a chemical substance that has a structure based on a naturally occurring human bile acid, that selectively binds to and activates the farnesoid X receptor, or FXR. On May 31, 2016, Intercept announced that the U.S. Food and Drug Administration (“FDA”) had approved Ocaliva for the treatment of patients with primary biliary cholangitis (“PBC”).
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Ocaliva entailed undisclosed safety risks, including death, to patients suffering from PBC; and (ii) as a result of the foregoing, Intercept’s public statements were materially false and misleading at all relevant times.
On September 12, 2017, Intercept issued a letter warning physicians against overdosing patients with Ocaliva, advising them that the drug has been tied to liver injuries and death among patients suffering from PBC.
On this news, Intercept’s share price fell $15.36, or 13.53%, to close at $98.12 on September 12, 2017.
On September 21, 2017, the FDA issued a safety announcement entitled “FDA Drug Safety Communication: FDA warns about serious liver injury with Ocaliva for rare chronic liver disease,” warning doctors after reports of multiple deaths linked to the drug.
On this news, Intercept’s share price fell $24.42, or 24.88%, to close at $73.70 on September 21, 2017.