Oppenheimer analyst Jay Olson downgraded this afternoon shares of Intercept Pharmaceuticals to Perform from Outperform.

Following a 25% decline yesterday, the stock is down 15% to $62.69 in afternoon trading. Both the company's "Dear Doctor" last week and yesterday's FDA communication contain warnings that Intercept's Ocaliva could result in increased risk of serious liver injury and death, Olson tells investors in a research note. The drug's primary biliary cholangitis script growth is below the analyst's prior forecasted trajectory and he believes the warnings "could further attenuate growth." Further, Olson is increasingly concerned with the commercial implications of Ocaliva for nonalcoholic steatohepatitis, which he believes "necessitates a clean safety profile."

Citi analyst Joel Beatty earlier today also downgraded Intercept.