Intercept Pharmaceuticals Reports Second Quarter 2013 Financial Results

   Intercept Pharmaceuticals Reports Second Quarter 2013 Financial Results

PR Newswire

NEW YORK, Aug. 13, 2013

NEW YORK, Aug. 13, 2013 /PRNewswire/ -- Intercept Pharmaceuticals, Inc.
(NASDAQ: ICPT) (Intercept), a clinical stage biopharmaceutical company focused
on the development and commercialization of novel bile acid therapeutics to
treat chronic liver diseases, such as primary biliary cirrhosis, today
reported financial results for the quarter and six months ended June 30, 2013
and announced presentations at an upcoming medical conference and upcoming
investor conferences.

Second Quarter 2013 Financial Results

Results of Operations

Six Months Ended June 30, 2013

For the six months ended June 30, 2013, Intercept reported a net loss of $23.7
million, or $1.41 per share, compared to a net loss of $9.3 million, or $2.78
per share, for the six months ended June 30, 2012. The $14.4 million increase
in net loss was primarily due to the increase in the non-cash charge related
to the periodic revaluation of warrant liability of $10.2 million and the
increase in non-cash stock compensation of $2.7 million.

Licensing revenue decreased by $707,000 to $811,000 for the six months ended
June 30, 2013, compared to $1.5 million for the corresponding period of the
prior year, because the up-front payment related to the Servier collaboration
was fully amortized as of the third quarter of 2012, and therefore no
amortized revenue related to this upfront payment was recognized in 2013.

Research and development expenses increased to $10.0 million for the six
months ended June 30, 2013, from $8.1 million for the corresponding period of
the prior year, primarily as a result of increased activities in Intercept's
development program for its product candidate, obeticholic acid (OCA). The
increase in R&D expense includes an increase of $1.3 million in non-cash
stock-based compensation for the six months ended June 30, 2013 compared to
the corresponding period of the prior year.

General and administrative expenses increased to $5.3 million for the six
months ended June 30, 2013 from $2.0 million for the corresponding period of
the prior year, primarily as a result of costs associated with operating as a
public company. The increase in G&A includes an increase of $1.5 million in
non-cash stock-based compensation compared to the corresponding period of the
prior year.

Non-operating expenses increased by $10.0 million in the six months ended June
30, 2013 as compared to the corresponding period of the prior year, primarily
due to an increase of $10.2 million in the non-cash charge related to the
periodic revaluation of warrant liability. This increase was primarily
attributable to the increased market price of Intercept's common stock in
2013. In connection with equity financings prior to its IPO, Intercept issued
warrants that are classified as liabilities and are adjusted to fair value on
a quarterly basis with the change in fair value being included in net loss.
The amount included in net loss is a non-cash item as Intercept is not
required to expend any cash to settle the warrant liability. The warrant
liability is primarily affected by changes in Intercept's stock price during
each financial reporting period, which causes the warrant liability to
fluctuate as the market price of Intercept's stock fluctuates.

Quarter Ended June 30, 2013

Net loss attributable to common stockholders for the second quarter endedJune
30, 2013was$13.5 million, or$0.79 per share, compared to a net loss of$5.8
million, or$1.75 per share, for the same period in 2012. The $7.6 million
increase in net loss is primarily due to the increase of$5.9 millionin the
non-cash charge related to the periodic revaluation of warrant liability,
primarily caused by the increase in the market price of Intercept's common
stock, and increased non-cash stock compensation expense of $1.5 million.

Cash Position

As ofJune 30, 2013, Intercept's cash, cash equivalents and investment
securities available for sale totaledapproximately $161.8 million, compared
to $110.2 millionatDecember 31, 2012. In June 2013, Intercept sold 1,989,500
shares of common stock at $33.01 per share in a public offering for net
proceeds of $61.4 million, after deducting underwriting discounts and offering
expenses. Based upon currently expected level of operating expenditures,
Intercept believes that it will be able to fund its operations through early
2016. This estimate reflects the ongoing POISE trial and long-term safety
extension of the POISE trial; nonclinical studies and clinical trials and
consulting expenditures to support Intercept's planned regulatory submissions
for OCA in PBC; anticipated pre-commercial activities for OCA in PBC; and
IND-enabling studies of INT-767.

Symposium at Upcoming International Congress of Immunology

On the afternoon of August 25, 2013, Intercept will host a satellite symposium
for physicians at the International Congress of Immunology being held in
Milan, Italy from August 22-27, 2013. The satellite symposium will be
moderated by Luciano Adorini, M.D., Intercept's Chief Scientific Officer, and
focus on the genetics, pathogenesis and therapy of primary biliary cirrhosis.

Upcoming Investor Conferences

Intercept's Chief Executive Officer, Mark Pruzanski, M.D., will present at the
following investor conferences in September:

  oMorgan Stanley 2013 Global Healthcare Conference on September 9, 2013 at
    2:25 p.m. Eastern Time at the Grand Hyatt hotel in New York City.
  oStifel Healthcare Conference 2013 on September 12, 2013 at 10:20 a.m.
    Eastern Time at the Four Seasons Hotel in Boston.

About Intercept

Intercept is a biopharmaceutical company focused on the development and
commercialization of novel therapeutics to treat orphan and more prevalent
liver diseases utilizing its expertise in bile acid chemistry. The company's
lead product candidate, obeticholic acid (OCA), is a bile acid analog and
first-in-class agonist of the farnesoid X receptor (FXR). OCA is initially
being developed for the second line treatment of primary biliary cirrhosis
(PBC) in patients with an inadequate response to, or who are unable to
tolerate, ursodiol, the only approved therapy for this indication. OCA has
received orphan drug designation in both the United States and Europe for the
treatment of PBC. Intercept owns worldwide rights to OCA outside of Japan and
China, where it has out-licensed the product candidate to Dainippon Sumitomo
Pharma. For more information about Intercept, please visit the Company's
website at: www.interceptpharma.com.

Safe Harbor Statements

This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995, including, but not
limited to, statements regarding the clinical, preclinical and regulatory
developments for our product candidates, the anticipated results of our
clinical and preclinical trials and other development activities, potential
timeframes for our and our collaborators' clinical and preclinical trials and
other development activities, the clinical utility of our selected endpoint
and any potential consensus relating thereto, anticipated trends relating to
our financial position, and our strategic directives under the caption "About
Intercept." These "forward-looking statements" are based on management's
current expectations of future events and are subject to a number of risks and
uncertainties that could cause actual results to differ materially and
adversely from those set forth in or implied by such forward-looking
statements. These risks and uncertainties include, but are not limited to: the
initiation, cost, timing, progress and results of Intercept's development
activities, preclinical studies and clinical trials; the timing of and
Intercept's ability to obtain and maintain regulatory approval of OCA and any
other product candidates it may develop, and any related restrictions,
limitations, and/or warnings in the label of any approved product candidates;
Intercept's plans to research, develop and commercialize future product
candidates; the election by Intercept's collaborators to pursue research,
development and commercialization activities; Intercept's ability to attract
collaborators with development, regulatory and commercialization expertise;
Intercept's ability to obtain and maintain intellectual property protection
for its product candidates; Intercept's ability to successfully commercialize
its product candidates; the size and growth of the markets for Intercept's
product candidates and its ability to serve those markets; the rate and degree
of market acceptance of any future products; the success of competing drugs
that are or become available; regulatory developments in the United States and
other countries; the performance of third-party suppliers and manufacturers;
Intercept's ability to obtain additional financing; Intercept's use of the
proceeds from its initial public offering and recently completed follow-on
offering; the accuracy of Intercept's estimates regarding expenses, future
revenues, capital requirements and the need for additional financing; the loss
of key scientific or management personnel; and other factors discussed under
the heading "Risk Factors" contained in Intercept's annual report on Form 10-K
for the year ended December 31, 2013 filed on April 1, 2013 and its quarterly
report on Form 10-Q for the quarter ended March 31, 2013 filed on May 14,
2013, as well as any updates to these risk factors filed from time to time in
Intercept's other filings with the Securities and Exchange Commission. All
information in this press release is as of the date of the release, and
Intercept undertakes no duty to update this information unless required by
law.



Intercept Pharmaceuticals, Inc.
Condensed Consolidated Statements of Operations
(Unaudited and in thousands, except per share data)
                       Three Months Ended         Six Months Ended
                       June 30,                   June 30,
                       2012         2013          2012           2013
Licensing revenue      $       $        $        $      
                       759         405          1,518           811
Costs and expenses:
 Research and         5,018        5,133         8,078          9,966
development
 General and          944          2,891         2,003          5,287
administrative
Total operating        5,962        8,024         10,081         15,253
expenses
Other income
(expense)
 Revaluation of       302          (5,572)       979            (9,255)
warrants
 Other income         (184)        (287)         (182)          10
(expense), net
Net loss               $         $            $         $    
                       (5,085)      (13,478)     (7,766)        (23,687)
Dividends on
preferred stock, not   (750)        -             (1,500)        -
declared
Net loss attributable  $         $            $         $    
to common              (5,836)      (13,477)     (9,266)        (23,687)
stockholders
Net loss per common    $        $         $        $      
share, basic and       (1.75)       (0.79)        (2.78)        (1.41)
diluted:
Weighted average
number of shares of
common stock           3,329,266    16,970,519    3,329,266      16,765,464
outstanding, basic
and diluted:
Condensed Consolidated Balance Sheet Information
(In thousands)
                                                  December31,   June 30,
                                                  2012           2013
                                                  (audited)      (unaudited)
Cash, cash                                        $           $   
equivalents and                                   110,194       161,799
investment securities
Total assets                                      112,179        163,869
Working capital                                   98,814         156,299
Deferred revenue,                                 12,162         11,351
total
Warrant liability,                                30,359         32,574
total
Total liabilities                                 46,267         47,597
Stockholders' equity                              65,912         116,272





SOURCE Intercept Pharmaceuticals

Contact: For more information about Intercept, please contact Mark Pruzanski,
M.D., or Barbara Duncan, both of Intercept Pharmaceuticals, at 1-646-747-1000.
 
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