Positive data from Intra-Cellular Therapies ‘ latest study could herald further success for the biotechnology stock, according to Canaccord Genuity. The financial firm stood by its buy rating on the biopharma name but raised its price target by 6% to $113 from $107. The updated forecast implies that shares of Intra-Cellular Therapies could soar nearly 50% from their Tuesday close at $75.48. Analyst Sumant Kulkarni said the catalyst for projected growth was the company’s announcement on June 18 of positive Phase 3 data from Study 502 for lumateperone, used to treat major depressive disorder, or MDD. “We view these data as even more impressive as they are very consistent with the recent solid Phase 3 data from Study 501, as MDD is a difficult indication to run successful trials in,” the analyst said, adding that the company could now file a supplemental new drug application by the second half of this year. “We believe the solidity of the Phase 3 data means an approval for luma in MDD is more of a when, not if.” Shares of Intra-Cellular Therapies have risen less than 4% this year. But the analyst believes the stock has been “somewhat constrained” due to investors’ overly cautious nature with luma’s potential patent runway, he wrote. Kulkarni, however, said he fully believes that the recent success of lumateperone could spell future success for the company. “In the longer term, execution in MDD will become important, and we note ITCI remains well-capitalized to potentially compete well in that large market,” he said. — CNBC’s Fred Imbert contributed to this report.
