Reeling From FDA Rejection, Intercept Pharma Slashes Headcount by 25%
Summary
Intercept Pharmaceuticals is cutting one-fourth of its workforce, a decision that comes two months after the FDA rejected its drug candidate for the liver disease nonalcoholic steatohepatitis (NASH). The Intercept drug, a once-daily pill, was designed to bind to a receptor that regulates the creation of bile acids, which in turn, is meant to trigger activity that combats fibrosis, inflammation, and fat retention. Last month, in its report of financial results for the second quarter of this year, Intercept said it plans to meet with the regulator “as soon as possible.” Obeticholic acid won FDA approval in 2016 for treating primary biliary cholangitis (PBC), a rare liver disorder. The drug is Intercept’s only commercialized product, and it accounted for $149.9 million in revenue in the first half of this year, a 27 percent increase compared to the same period in 2019, according to the company’s financial reports. Intercept said in the regulatory filing that it expects to record an $18 million charge consisting of severance pay and other termination expenses.
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