UPDATE: Goldman Sachs Downgrades Intra-Cellular Therapies (ITCI) to Neutral

(Updated - August 22, 2022 5:24 AM EDT)

Goldman Sachs analyst Corinne Jenkins downgraded Intra-Cellular Therapies (NASDAQ: ITCI) from Buy to Neutral with a price target of $49.00 (from $64.00).

The analyst comments "We downgrade ITCI to Neutral (from Buy prior) and reduce our 12-month price target to $49 (from $64 prior). Since being added to the Americas Buy List on February 15, 2022, ITCI is -3.9% vs. the Russell 2000 -3.1% (and XBI -4.9) over that time. The stock has outperformed YTD, supported by a strong initial launch of Caplyta in bipolar depression, and ITCI has beaten consensus estimates in both 1Q22/2Q22. However, we see early indicators that Caplyta prescription volume growth is slowing and note that ITCI has already exercised primary levers to accelerate volume growth (DTC launch, coverage expansion). We also anticipate the entrance of generic Latuda to shift market dynamics in BPD and while the widespread availability of generic antipsychotics today imply that generic competition is likely manageable in this indication, a new generic entrant nonetheless poses an incremental competitive threat to Caplyta in our view. Finally, we note a dearth of significant value-inflecting catalysts over the near-term for ITCI, supporting our view of more limited upside potential from here."

For an analyst ratings summary and ratings history on Intra-Cellular Therapies click here. For more ratings news on Intra-Cellular Therapies click here.

Shares of Intra-Cellular Therapies closed at $51.42 yesterday.

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