On Tuesday, RBC Capital adjusted its price target for shares of Intra-Cellular Therapies (NASDAQ:ITCI) to $96, down from the previous target of $100. Despite the reduction, the firm maintained its Outperform rating on the biopharmaceutical company. The adjustment followed Intra-Cellular Therapies' first-quarter earnings report for 2024.
The company's progress, particularly with its drug Caplyta, was a focal point during a recent meeting with management. RBC Capital highlighted the growing demand for Caplyta in treating schizophrenia and bipolar disorder, attributing this trend to the drug's favorable safety profile, which is well-received by healthcare providers.
RBC Capital expressed confidence in Caplyta's potential to become a leading atypical antipsychotic medication. The analyst cited the success of Study 501, which evaluated Caplyta as an adjunctive treatment for major depressive disorder (MDD), as a key indicator of the drug's promise. Positive expectations are set for the upcoming results from Study 502, anticipated in June, which could further bolster Caplyta's profile.
The firm anticipates that positive outcomes from these studies could pave the way for Caplyta to achieve over $3 billion in peak sales within the U.S. market. RBC Capital suggested that investors consider buying shares ahead of the forthcoming top-line data release and the potential market introduction of Caplyta for MDD in 2025.
The stock price target adjustment to $96 was attributed to updates in the firm's financial model. Despite the lowered target, the overall outlook for Intra-Cellular Therapies remains positive, with expectations of significant sales growth driven by Caplyta's performance in the market.
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