Why Intercept Shares Are Rising Today

Intercept Pharmaceuticals Inc ICPT has agreed to sell certain foreign subsidiaries and rights regarding its international operations, including a license to commercialize Ocaliva (obeticholic acid) outside of the U.S., to Advanz Pharma. 

• Intercept will receive $405 million upfront and an additional $45 million from Advanz Pharma contingent upon receiving an extension of pediatric orphan exclusivity in Europe.
• Intercept will receive royalties on any future net sales of obeticholic acid in NASH outside of the U.S., should Advanz Pharma pursue marketing authorization for this indication in ex-U.S. regions.
• Most Intercept employees outside of the U.S. will transfer to Advanz Pharma. The remaining international employees will continue to work for Intercept.
• Intercept will continue to be responsible for the manufacturing and supply of obeticholic acid globally, and Advanz Pharma will be responsible for packaging, distribution, and commercialization of the therapy in all markets outside of the U.S.
• Ocaliva was granted conditional approval by the European Commission in December 2016 for primary biliary cholangitis (PBC) in combination with ursodeoxycholic acid.
• Price Action: ICPT shares are up 17.9% at $19.09 during the market session on the last check Thursday.