Obeycholic acid is an orally bioavailable semi synthetic bile acid derivative and an agonist of the nuclear bile acid receptor Farneside X receptor (FXR), which can be used to reduce liver exposure to bile acids. After oral administration, obycholic acid targets and binds to FXR expressed in the liver and intestines, activating FXR mediated bile acid, inflammation, fibrosis, and metabolic pathways. This inhibits the production of bile acids in liver cells, increases the transport of bile acids from liver cells, and thus reduces liver exposure to bile acids. FXR plays an important role in bile acid balance and is involved in liver and intestinal inflammation as well as liver fibrosis.