ITCI - Intra-Cellular cut to Neutral at Goldman on trends for antipsychotic drug

• Goldman Sachs downgraded commercial-stage biopharma Intra-Cellular Therapies, Inc. ( NASDAQ: ITCI ) to Neutral from Buy, noting the market dynamics for its only product Caplyta, a treatment indicated in the U.S. for schizophrenia and bipolar depression.
• The analysts note that ITCI, which has exceeded Street forecasts for Q1 and Q2 2022, has outperformed this year thanks to a strong commercial rollout for Caplyta in bipolar depression.
• However, Goldman cites slowing drug prescription volume growth and points out that ITCI has already used the main growth drivers to speed up volume growth.
• While widespread antipsychotic medications indicate a potentially manageable generic competition for the indication, “a new generic entrant nonetheless poses an incremental competitive threat to Caplyta in our view,” the analysts added. They expect the market entry of generic Latuda to change market dynamics in BPD.
• In addition, Goldman also sees limited value generating catalysts in the near term for ITCI and lowers its price target to $49 from $64 per share.
• Wall Street has remained bullish on Intra-Cellular ( ITCI ) stock, with an average rating of Buy from analysts. Seeking Alpha Author ratings and our quant system, which consistently beats the market, rates ITCI as a Hold.

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