On Tuesday, JPMorgan reiterated its Overweight rating and $75.00 price target on Intra-Cellular Therapies (NASDAQ:ITCI), following the company's first-quarter financial results. Intra-Cellular reported quarterly revenue of $145 million, which was consistent with the figures the company had pre-announced. Notably, this revenue performance marks a 53% year-over-year increase and a 10% quarter-over-quarter growth. The company's net loss for the quarter was $15 million, which was an improvement over the projected net losses of $33 million by JPMorgan and $30 million consensus estimates.
Caplyta, Intra-Cellular's flagship product, contributed the entirety of the reported revenue, demonstrating robust sales that align with the company's full-year guidance range of $645 million to $675 million. JPMorgan's own estimate for the year stands at $652 million, closely aligned with the consensus of $670 million. The positive sales trajectory of Caplyta is seen as a significant driver for the company's stock performance.
Intra-Cellular also recently announced promising results from Study 501, the first of three pivotal phase III adjunctive Major Depressive Disorder (adj. MDD) studies for Caplyta. The anticipation for the results of Study 502, expected to be released towards the end of the quarter, is high. JPMorgan suggests that these developments could potentially open up a substantial new market opportunity for Intra-Cellular.
In summary, JPMorgan's outlook on Intra-Cellular Therapies remains positive, underpinned by Caplyta's sales strength and its potential for expanded indications. The firm's analysis indicates confidence in the drug's ongoing momentum and its prospects for future growth in the market.
InvestingPro Insights
Intra-Cellular Therapies (NASDAQ:ITCI) has shown a strong revenue growth trajectory, as highlighted by the recent quarterly report. To further inform investors, InvestingPro provides additional context with real-time data and insights. The company's market capitalization stands at $7.46 billion, reflecting a substantial market presence. Despite the lack of profitability in the last twelve months, with a P/E ratio of -47.91, the revenue has grown impressively by 85.51% over the same period. This growth is a testament to the increasing sales of Caplyta, which aligns with JPMorgan's positive outlook on the company's financial health.
InvestingPro Tips reveal that analysts have revised their earnings upwards for the upcoming period, indicating a positive shift in expectations. Additionally, Intra-Cellular's liquid assets surpass its short-term obligations, providing a degree of financial stability. However, it's important to note that analysts do not anticipate the company to be profitable this year, which is a factor for investors to consider.
For those looking to delve deeper into Intra-Cellular Therapies' financials and future prospects, InvestingPro offers a range of further tips, including insights on the company's moderate level of debt and its high Price / Book multiple. Interested readers can find more details and additional tips on InvestingPro's platform, and can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With a total of 9 additional InvestingPro Tips available, investors can gain a comprehensive view of the company's performance and potential investment opportunities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.