On Tuesday, Intra-Cellular Therapies (NASDAQ:ITCI) received a positive evaluation from Mizuho Securities following the announcement of encouraging results from its Study 501. Mizuho analyst underscored optimism by maintaining a Buy rating on the stock and setting a price target of $82.
The study focused on Caplyta, the company's treatment for major depressive disorder (MDD), and demonstrated efficacy that exceeded expectations. The data showed a more significant placebo-adjusted improvement on the Montgomery-Åsberg Depression Rating Scale (MADRS) than the company had anticipated.
The management of Intra-Cellular Therapies had previously indicated a potential 2-4 point improvement over placebo on the MADRS scale. However, the study's findings surpassed these projections. In comparison to four other atypical antipsychotics approved for adjunctive use in MDD, which showed a range of 0.9 to 3.2 point improvements, Caplyta's performance in Study 501 was notably better.
In addition to the efficacy results, the safety and tolerability profile of Caplyta was deemed favorable and consistent with previous trials of lumateperone, the active ingredient in Caplyta. Importantly, no new safety signals were reported, which was another positive aspect highlighted by the analyst.
In response to the study's results, Intra-Cellular Therapies' shares saw an approximate 20% increase in pre-market trading. The analyst from Mizuho believes that the stock has the potential to climb even higher given the better-than-expected study outcomes and recent discussions with investors.
InvestingPro Insights
Following the positive news from Intra-Cellular Therapies' latest study, investors might be interested in a deeper financial perspective on the company. According to InvestingPro, while analysts do not expect the company to be profitable this year, ITCI's liquid assets do exceed short-term obligations, suggesting a degree of financial stability. Additionally, the company operates with a moderate level of debt, which could be a reassuring sign for risk-averse investors.
InvestingPro data reveals a market capitalization of $6.27 billion, with a significant revenue growth of 85.51% in the last twelve months as of Q4 2023. The Price / Book ratio stands at a high 10.6, reflecting a premium market valuation of the company's net assets. Despite the lack of profitability over the last twelve months, with a P/E ratio of -44.88, the company's stock has delivered a strong return over the last five years, which might be of interest to long-term investors.
For those considering an investment in Intra-Cellular Therapies, there are additional InvestingPro Tips available that could provide further insights into the company's performance and potential. With the use of coupon code PRONEWS24, users can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, allowing access to a comprehensive suite of tools and analytics. Currently, there are 8 additional InvestingPro Tips listed for ITCI, which could offer valuable guidance for interested investors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.