On Tuesday, JPMorgan (NYSE:JPM) updated its price target for NASDAQ:ITCI, Intra-Cellular Therapies (NASDAQ:ITCI) shares, to $79 from the previous target of $78, while maintaining an Overweight rating on the stock.
This adjustment follows Intra-Cellular's recent announcement of a successful second pivotal trial for Caplyta in the treatment of adjunctive Major Depressive Disorder (adj MDD).
The company's CEO, Sharon Mates, during a conference call, described the expected sales growth for Caplyta following the adj MDD approval as a "hockey stick" trajectory.
This term, signifying a sharp increase, underscores the confidence the management team, including CCO Mark Neumann and CMO Suresh Durgam, has in the drug's data and their ability to successfully launch it in the new indication.
JPMorgan's revised estimate also takes into account the prescription trends observed in the second quarter and anticipates a label expansion for Caplyta in adj MDD in the second half of 2025. With Caplyta already projected to generate approximately $650 million in sales this year, the new indication is expected to significantly bolster revenue.
Intra-Cellular is well-positioned for growth with the upcoming approval in adj MDD, considering the drug's multi-billion dollar peak sales potential. The company's solid financial standing adds to the optimistic outlook, suggesting that Intra-Cellular is strategically poised to capitalize on the upcoming opportunities.
In other recent news, Intra-Cellular Therapies has been the subject of noteworthy developments. The company reported Q1 revenues for 2024 of $144.8 million, primarily driven by robust sales of its drug, Caplyta.
Moreover, its drug Lumateperone showed promise in a recent study as an effective adjunctive treatment for Major Depressive Disorder (MDD), prompting the company to plan a supplemental New Drug Application to the U.S. Food and Drug Administration in the second half of 2024.
Financial services firm Needham increased its price target for Intra-Cellular Therapies to $100, up from the previous $94, maintaining a Buy rating. This adjustment followed a major depressive disorder survey that revealed positive expectations from physicians regarding the use of Caplyta.
However, UBS downgraded the company's stock to Neutral from Buy, adjusting the price target to $83, citing limited potential for further stock appreciation in the near term.
RBC Capital reiterated its Outperform rating on Intra-Cellular shares, citing the potential of Caplyta in treating MDD and a future revenue forecast of over $3 billion, largely driven by Caplyta's promising profile.
RBC Capital also maintained an Outperform rating on Intra-Cellular Therapies, supported by a positive evaluation of the company's Caplyta patent estate, suggesting a potential $3 billion total out-year opportunity for Intra-Cellular Therapies if the MDD label expansion is realized. These are the latest developments in the ongoing story of Intra-Cellular Therapies.
InvestingPro Insights
With Intra-Cellular Therapies (NASDAQ:ITCI) poised for growth, the latest data from InvestingPro provides a deeper look into the company's financial health and market performance. With a market capitalization of $8.07 billion and a significant revenue growth of 65.45% in the last twelve months as of Q1 2024, the company's financial trajectory appears robust. Despite a high Price/Book ratio of 13.47, which suggests a premium market valuation, Intra-Cellular has demonstrated a strong return over the last five years, reinforcing investor confidence in its long-term prospects.
InvestingPro Tips indicate that while analysts have tempered their earnings expectations and do not foresee profitability for this year, the company's liquid assets surpass short-term obligations, indicating a healthy liquidity position. Additionally, Intra-Cellular operates with a moderate level of debt, which may provide some flexibility in pursuing growth opportunities. It's worth noting that the company has not been profitable over the last twelve months and does not pay a dividend, which could be a consideration for income-focused investors.
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