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Goodwin Procter Represents Underwriters in Intercept Pharmaceuticals IPO

10.16.12

A team of Goodwin Procter attorneys advised the underwriters, led by client Bank of America Merrill Lynch as the book-running manager, in the recent successful initial public offering by Intercept Pharmaceuticals.

Intercept, a New York-based developer of bile-acid derived therapeutics for chronic liver diseases, increased its offering to 5 million shares at $15 from its original plan to offer 4.3 million shares at between $13-$15, and following the first day of trading the underwriters exercised their option to buy an additional 750,000 shares, so that Intercept ultimately sold 5,750,000 shares at $15.00. The company is listed on Nasdaq under the ticker symbol ICPT.

The stock increased 29 percent to $19.40 on its first day of trading Oct. 11, a bright spot as other biotech firms have cut share prices or delayed their IPOs altogether. Intercept expects the offering to result in net proceeds of $78.7 million to the company.

Bank of America Merrill Lynch acted as sole book-running manager, along with BMO Capital Markets as lead manager and Needham & Company, Wedbush PacGrow Life Sciences and ThinkEquity LLC as co-managers. Major institutional shareholders include Genextra and OrbiMed Advisors.

“We were pleased to be associated with this very successful offering,” said Christopher Austin, a partner in the firm’s Capital Markets Practice. “Our goal as securities counsel is to help our clients fully comply with the securities laws while allowing the issuer to tell its story to investors. It’s always nice when a transaction we work on does well.”

The Goodwin team that advised Bank of America Merrill Lynch included Austin, Ilan NissanDuncan Greenhalgh and Chad Davis.