Intercept announces restructuring, workforce reduction of about 33%

Intercept Pharmaceuticals announced a restructuring to strengthen the company’s focus on rare and serious liver diseases and significantly reduce operating expenses, including discontinuing all nonalcoholic steatohepatitis-related investment. Planned Actions and Financial Impacts: The company will promptly begin the process of closing out the REGENERATE study. The company expects to substantially complete the trial shut-down process by the end of 2023. In addition to closing out REGENERATE, Intercept is quickly winding down all other NASH-related spending within the company’s R&D, commercial, medical affairs and administrative functions. Actions taken by Intercept to reduce its operating expenses are projected to result in a workforce reduction of approximately one third of the company. Intercept expects to initiate workforce reductions in the third quarter of 2023, with the vast majority completed by the end of 2023. Intercept plans to maintain the scale of its current field sales organization to support the growth potential of Ocaliva. Intercept is targeting a net reduction in annual non-GAAP adjusted operating expenses of approximately $140M. These savings will be relative to updated 2023 non-GAAP adjusted operating expense guidance and will be effective upon completion of the restructuring and close out of the REGENERATE study.