A month has gone by since the last earnings report for Intra-Cellular Therapies (ITCI). Shares have added about 2.2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Intra-Cellular due for a pullback? Before we dive into how investors and analysts have reacted as of late, let’s take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Intra-Cellularreported third-quarter 2024 loss of 25 cents per share, wider than the Zacks Consensus Estimate of a loss of 18 cents. The company had incurred a loss of 25 cents per share in the year-ago quarter.
Total revenues, comprising product sales and grant revenues, came in at $175.4 million, up 39% year over year. The top line beat the Zacks Consensus Estimate of $172 million.
Net product revenues, comprising Caplyta sales, were up 39% year over year to $175.2 million on the back of strong prescription uptake. Per Intra-Cellular, Caplyta prescriptions jumped 38% year over year and 9% sequentially, reflecting its continued strong uptake in market share gains in bipolar depression.
To maximize the sales potential of Caplyta for its approved indications, the company completed the expansion of its sales force in the third quarter of 2024 for increased accessibility to primary care physicians. Hence, Intra-Cellular hired 150 additional sales representatives. The company is also planning a second primary care physician sales force expansion for 2025, subject to the potential approval of Caplyta for the adjunctive treatment of MDD.
Grant revenues came in at $0.2 million in the reported quarter, down 40% year over year.
Research and development (R&D) expenses surged 61% to $66.8 million from the year-ago quarter’s figure. This uptick was due to higher lumateperone program costs.
Selling, general and administrative (SG&A) expenses increased 26% year over year to $132.1 million, driven by marketing and advertising costs.
As of Sept. 30, 2024, ITCI had cash, cash equivalents, restricted cash and investment securities of $1 billion compared with $1.025 billion as of June 30, 2024.
Intra-Cellular updated its previously announced financial guidance for 2024. It now expects higher full-year Caplyta net product sales in the range of $665-$685 million compared with the previously guided range of $650-$680 million.
The company’s R&D expenses are projected in the range of $220-$230 million, which is narrower than the previously guided range of $210-$230 million.
Intra-Cellular expects SG&A expenses in the range of $490-$510 million, which is narrower than the previously guided range of $480-$510 million. The forecast includes an anticipated increase in sales, marketing and other expenses associated with the sales force expansion in the primary care segment in the second half of 2024.
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 45.58% due to these changes.
Currently, Intra-Cellular has a subpar Growth Score of D, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren’t focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Intra-Cellular has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Intra-Cellular belongs to the Zacks Medical – Biomedical and Genetics industry. Another stock from the same industry, Incyte (INCY), has gained 1.8% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.
Incyte reported revenues of $1.14 billion in the last reported quarter, representing a year-over-year change of +23.8%. EPS of $1.07 for the same period compares with $1.10 a year ago.
For the current quarter, Incyte is expected to post earnings of $1.59 per share, indicating a change of +50% from the year-ago quarter. The Zacks Consensus Estimate has changed -5% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Incyte. Also, the stock has a VGM Score of F.
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