Intercept Pharmaceuticals Inc (NASDAQ:ICPT) Lays Off A Section Of Its Workforce

Intercept Pharmaceuticals Inc (NASDAQ:ICPT) has been a front runner among companies focusing on dealing with the treatment of NASH for years. A quarter of this company’s staff will lose its job after the company announced plans to lay off some workers. Years ago, many drug companies took to finding the solution for newly defined liver disease, and it was there that Intercept Pharmaceuticals joined in this race.

Companies in the NASH experience disappointments

The recent months have been rather frustrating for those companies in the NASH field. Sources indicate that they have been encountering a lot of disappointments. For example, in July, Genfit (ticker: GNFT) disclosed its plan to drop its NASH program altogether.

Shortly after, Intercept spoke concerning cutting down of a section of its staff. It cited the decision by the Food and Drug Administration to kick out its NASH drug application. That was back in June, and it wasn’t very reassuring for a company that had hoped for positive feedback. Sources show that it had hoped to become the first one to get a nod from the body in line with offering treatment for the condition.

FDA’s decision sparks about a decline in shares

It was back in June that Intercept Pharmaceuticals made the pronouncement about the decline in its shares, represented by a figure of about 39.7%. The company attributed this drop to the regulatory body’s move to dismiss its application for its drug obeticholic acid. It was a product set to be approved as a form of NASH treatment.

The FDA had cited its reasons for turning down the drug application, which the company didn’t find satisfactory. The body expressed reservations about the magnitude of the drug’s benefits, outlining that they didn’t outweigh the potential risks adequately.

It was on Tuesday that the company spoke about its stock has dropped by another 10.7%. The company made a move to file for a Securities and Exchange Commission report, which expressed its desire to cut down on its workforce. However, it will continue with its activities in the development of obeticholic acid as a NASH treatment. This will target another liver disease called the primary biliary cholangitis.