2023-04-20 13:40:42 ET
Morgan Stanley launched its coverage on Intra-Cellular Therapies ( NASDAQ: ITCI ) with an Overweight recommendation, expecting the strong sales momentum for the company’s schizophrenia therapy Caplyta to continue ahead of Phase 3 readouts for additional indications.
The analyst Jeffrey Hung with a price target of $80 on ITCI, points out that Caplyta, approved in the U.S. for schizophrenia as well as bipolar depression, posted ~193% YoY total script growth in 2022.
With sequential script growth standing at more than 21% and 18% in Q4 2022 and Q1 2023, respectively, “we believe sales will remain strong in 2023,” Hung added.
Intra-Cellular ( ITCI ) intends to expand Caplyta use for additional indications, with Phase 3 studies planned to target it as an adjunctive therapy for major depressive disorder (MDD) and MDD with mixed features.
“Although exact timing of data for the MDD Phase 3 studies remain uncertain, we have greater confidence following recent clear positive results in mixed features,” the analyst wrote, referring to a recent topline readout for Caplyta, also known as lumateperone.
Hung sets 65% and 70% probabilities of success for Caplyta in MDD and MDD with mixed features, respectively.
Read: Seeking Alpha analyst Stephen Ayers expects Caplyta to reach blockbuster status in the near term.
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Morgan Stanley starts Intra-Cellular at Overweight on schizophrenia therapy