Intra-Cellular Therapies: A Strong Buy on Robust Financials and Promising Caplyta Prospects

Sumant Kulkarni, an analyst from Canaccord Genuity, maintained the Buy rating on Intra-Cellular Therapies (ITCI – Research Report). The associated price target remains the same with $107.00.

Sumant Kulkarni’s rating is based on a favorable view of Intra-Cellular Therapies’ current financial position, robust clinical data, and the potential for its key product, Caplyta, in existing and new indications. Kulkarni highlights the company’s strong financials following a successful capital raise, underpinned by solid Phase 3 results for lumateperone as an adjunct treatment for major depressive disorder (MDD). The anticipation of additional positive Phase 3 outcomes and a supplemental new drug application in the latter half of 2024 contribute to the optimism. Furthermore, the company’s pipeline outside of lumateperone, which Kulkarni believes is not fully appreciated by the market, adds to the potential upside for Intra-Cellular Therapies’ valuation.
Despite the inherent risks in MDD studies, Kulkarni is confident in the company’s prospects, citing the comprehensive data set supporting lumateperone’s effectiveness. The strength of Intra-Cellular Therapies’ neuropsychiatry assets, combined with their potential scarcity value, underpins the Buy recommendation. Kulkarni maintains a price target of $107, with Caplyta sales forecasts remaining within the company’s projected range and peak sales estimated at $5.85 billion by 2034. The analyst’s valuation model, which includes a settlement scenario for generic competition, reflects a continuation of the current discounted cash flow period into mid-2025, reinforcing the Buy rating.

In another report released yesterday, Needham also reiterated a Buy rating on the stock with a $90.00 price target.

ITCI’s price has also changed moderately for the past six months – from $56.240 to $71.210, which is a 26.62% increase.

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Intra-Cellular Therapies (ITCI) Company Description:

Intra-Cellular Therapies, Inc. is a biopharmaceutical company, which focuses on the discovery and clinical development of innovative, small molecule drugs that address underserved medical needs in neuropsychiatric and neurological disorders by targeting intracellular signaling mechanisms within the central nervous system, or CNS. Its lead product candidate, ITI-007, is in clinical development as a first-in-class treatment for schizophrenia. The company also includes pre-clinical programs that are focused on advancing drug candidates for the treatment of cognitive dysfunction, in both schizophrenia and Alzheimer’s disease, and for disease modification and the treatment of neurodegenerative disorders, including Alzheimer’s disease. The company was founded by Paul Greengard and Sharon Mates on August 29, 2013 and is headquartered in New York, NY.