Intra-Cellular Therapies Inc (ITCI) Q4 2020 Earnings Call Transcript

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Intra-Cellular Therapies Inc (ITCI -1.20%)
Q4 2020 Earnings Call
Feb 25, 2021, 8:30 a.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

Good morning, ladies and gentlemen, and welcome to the Intra-Cellular Therapies Fourth Quarter and Year End 2020 Financial Results Conference Call. [Operator Instructions]

I would now like to turn the conference over to your host, Dr. Juan Sanchez, Vice President, Corporate Communications and Investor Relations. Please go ahead.

Juan Sanchez -- Vice President of Corporate Communications and Investor Relations

Good morning, and thank you all for joining us for today's conference call.

Our earnings press release provides a corporate update and details of the Company's financial results for the fourth quarter and year ended December 31, 2020. This press release crossed the wire a short time ago and is available on our website at intracellulartherapies.com.

Joining me on the call today are Dr. Sharon Mates, Chairman and Chief Executive Officer; Mark Neumann, Executive Vice President and Chief Commercial Officer; Dr. Suresh Durgam, Senior Vice President and Chief Medical Officer; and Larry Hineline, Senior Vice President and Chief Financial Officer.

As a reminder, during today's call, we will be making certain forward-looking statements. These statements may include statements regarding among other things, the efficacy, safety, and intended use of the Company's product development candidates, our clinical and non-clinical plans, our plans to present or report additional data, the anticipated conduct and results of ongoing and future clinical trials, plans regarding regulatory filings, future research and development, our plan and expectations regarding the commercialization of CAPLYTA, potential impact of the COVID-19 pandemic on our business, and possible uses of existing cash and investment resources.

These forward-looking statements are based on current information, assumptions and expectations that are subject to change and involve a number of risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These and other risks are described in our periodic filings made with the Securities and Exchange Commission, including our quarterly and annual reports. You're cautioned not to place undue reliance on these forward-looking statements, and the Company disclaims any obligations to update such statements.

I will now turn the call over to Sharon.

Sharon Mates -- Founder, Chairman and Chief Executive Officer

Thanks, Juan, and welcome everyone to today's call. 2020 was a transformational year for Intra Cellular Therapies, and I am proud of our team's successful execution of our commercial objectives and development programs, particularly given the challenging environment that COVID-19 has caused. We successfully launched our first FDA-approved product, CAPLYTA, for the treatment of schizophrenia in adults, just as the pandemic began to cause major disruptions in patient care. Throughout the year, we also made substantial progress on our bipolar depression program and we advanced other clinical development programs.

This year in addition to our ongoing commercial efforts for CAPLYTA, we are pursuing advances in three major areas. First, we look forward to expanding our CAPLYTA label with indications in bipolar depression. We recently submitted the supplemental new drug applications for CAPLYTA and anticipate an FDA target action date in the second half of this year. Second, we will continue our late-stage development programs for lumateperone in depressive disorders. Third, we will continue to advance the clinical development of our long-acting injectable formulation of lumateperone, ITI-333 and our PDE1 inhibitors, as well as ITI-1284, our newly introduced program.

Before I give an overview of our commercial efforts, I want to take a step back and put our progress in the context of our Company's mission. ITCI has set out to create better medicines to provide benefit for people who are living with some of the most difficult diseases to treat. We developed lumateperone with strong belief and its potential to help patients living with highly prevalent neuropsychiatric conditions like schizophrenia, bipolar disorder and major depressive disorder.

Our first focus was schizophrenia, which affects about 2.4 million adults in the United States. Antipsychotics have side effects that contribute to patients cycling through medicines or discontinuing use. CAPLYTA has demonstrated efficacy and a favorable safety and tolerability profile to help address significant unmet needs in schizophrenia.

Another condition in need of additional treatment options is bipolar disorder, with more than 11 million American adults affected by this disorder. Bipolar depression is the most common and most difficult to treat manifestation of this disorder, but only a few approved therapies exist for these depressive episodes and only one is approved for Bipolar II patients and only as a monotherapy. In addition, there is a large unmet need for patients with major depressive disorder. Each year, more than 17 million adults are affected with this condition in America. However, over 50% of these patients fail to respond adequately to first-line therapies and require additional treatment. There are few antipsychotics approved for adjunctive treatment of depression and there are safety and tolerability trade-offs with these drugs for patients.

In sum, there is a significant need for effective, safe and well-tolerated treatments for these major neuropsychiatric conditions. We believe lumateperone will be an important addition to available options for these patients.

Now, let me give you some highlights of the past year. We are pleased with CAPLYTA quarter-over-quarter prescription growth. In Q4, prescriptions grew 77% compared to the prior quarter. Net product revenues of CAPLYTA for the fourth quarter were $12.4 million compared to $7.4 million in the third quarter. For the full year, CAPLYTA generated $22.5 million in revenue. Larry Hineline, our Chief Financial Officer, will provide further details on our financial performance later in our remarks.

We began the year 2020 by hiring our national sales team to launch CAPLYTA and we strengthened our infrastructure to successfully commercialize our first product. CAPLYTA was launched in late March 2020, coinciding with the start of major COVID-19 disruptions. Our team quickly adopted our commercialization model to include in-person and virtual sales force interactions and medical education. We accompanied those efforts with digital marketing initiatives and direct-to-consumer promotion. In spite of the COVID-19 challenges, we've had a strong commercial launch of CAPLYTA, and Mark Neumann, our Chief Commercial Officer will provide further details during his remarks.

In addition to launching CAPLYTA, we are proud of our other accomplishments as well. In September of 2020, we reported positive results from Study 402, our Phase 3 study that evaluated lumateperone as an adjunctive therapy to mood stabilizers in bipolar depression. Lumateperone 42 milligrams met the primary endpoint for improvement in depression. This follows the positive results from Study 404 evaluating lumateperone as a monotherapy.

These two studies serve as the basis of our sNDA filings for bipolar depression. Both studies demonstrated robust efficacy and a favorable tolerability and safety profile, consistent with the findings in all our previous studies.

Looking ahead to 2021, we are positioned to expand our CAPLYTA label. If approved, CAPLYTA would be the first therapy indicated for the treatment of depressive episodes associated with Bipolar I or Bipolar II disorder both as monotherapy and as adjunctive therapy, with lithium or valproate in adults. We will continue to make progress in our depressive disorders program this year. Our large late-stage Study 403 is ongoing and is evaluating the antidepressant effect of lumateperone in patients who exhibit mixed features with bipolar depression or mixed features with major depressive disorder. We expect results from this study in the second half of 2022.

In 2020, we began our adjunctive MDD program and anticipate enrolling patients in two Phase 3 studies evaluating lumateperone as an adjunctive treatment in major depressive disorder later this year. In addition, we are advancing our long-acting injectable formulation of lumateperone. Our single ascending dose Phase 1 study is in progress and we anticipate initial results in the second half of 2021.

Finally, we are continuing to advance our other pipeline programs. I'd like to start with 1284, which is the most recent addition to our pipeline. 1284 is a deuterated form of lumateperone, delivered sublingually as an orally disintegrating tablet abbreviated as ODT-SL. ITI-1284 ODT-SL may offer pharmacologic benefits and ease of use for patients, particularly in elderly populations. Our recently completed Phase 1 program found that ITI-1284 was rapidly absorbed into the systemic circulation with metabolic stable and resulted in high systemic exposure.

We plan to initiate studies evaluating ITI-1284 for the treatment of behavioral disturbances in patients with dementia, the treatment of dementia-related psychosis and for the treatment of certain depressive disorders in the elderly. We expect to initiate these studies late this year and next year.

Next, I'll discuss our phosphodiesterase Type 1 inhibitor program. Our PDE1 inhibitor program is focused on diseases in which the PDE1 enzyme is over-expressed and/or abnormal immune cell functions contributes to disease pathology. This provides opportunities to pursue innovative treatments for multiple diseases, including Parkinson's, heart failure and other disease states. We have already reported positive results from Phase 1/2 studies, evaluating lenrispodun, formerly known as ITI-214, in patients with Parkinson's disease and in patients with chronic systolic heart failure. We plan to advance lenrispodun into a Phase 2 clinical study in Parkinson's disease later this year.

Another program in our pipeline is our ITI-333 platform, with ITI-333, our lead compound in development for the treatment of opioid use disorder. We initiated a Phase 1 single ascending dose study evaluating the safety, tolerability and pharmacokinetics of ITI-333 in healthy volunteers. We anticipate results from this study in the second half of this year. We look forward to providing more details on these programs and our pipeline during an R&D Day, which we anticipate conducting in Q3.

Finally, we ended the year with approximately $659 million of cash, cash equivalents and investments. Larry will provide additional details in his remarks.

In summary, I'm very proud of all our accomplishments in the past year, and I look forward to continued growth and expansion in the year ahead.

I'll now turn the call over to Mark Neumann for details on our commercial efforts. Mark?

Mark Neumann -- Executive Vice President, Chief Commercial Officer

Thank you, Sharon and good morning, everyone. Looking back on the year, ITCI delivered strong commercial execution, enabling a successful launch of CAPLYTA even in the midst of the COVID-19 pandemic. In late March, we pivoted from an in-person commercial launch to an all virtual one in very short order. Our team demonstrated agility, creativity and ingenuity to adapt to the new commercial environment that COVID-19 created. As Sharon mentioned, we deployed a hybrid model of in-person and virtual programs for sales interactions and medical education. We also increased our digital marketing initiatives and direct-to-consumer promotion.

These efforts were clearly successful based on the performance of CAPLYTA in the market. CAPLYTA's market access position continues to be strong with coverage standing at more than 95% of covered lives in both Medicare Part D and State Medicaid. These are the major payer channels in schizophrenia representing approximately 70% to 85% of all prescriptions for schizophrenia. Our LytaLink patient support program continues to be highly competitive and effective in assisting prescribing physicians and eligible patients to gain access to CAPLYTA. We've seen consistent robust prescription growth since launch and this performance extended through the end of 2020. Specifically, during the fourth quarter CAPLYTA's total prescriptions increased 77% relative to Q3.

Keep in mind this was during the time when the overall antipsychotic market was essentially flat because of COVID constraints. And while COVID continues to impact patient care, we're confident that CAPLYTA's prescription numbers will continue to grow. We're also very encouraged to see that both patients and doctors continue to report highly positive experiences with CAPLYTA. In market research surveys, CAPLYTA prescribers rated higher for overall drug performance compared to other branded antipsychotics' that have been on the market for a much longer period of time. They highlight the efficacy and favorable metabolic, weight and movement disorder profile and the ease of reaching a therapeutic dose with no need for titration.

Another indicator that CAPLYTA is being well received by patients is the rate at which they're refilling their prescriptions. We're pleased with the refill rate for CAPLYTA showing that many patients who have started CAPLYTA tend to stay on longer than we see for other products at the same time in their launch. We are extremely pleased to see our product performing so well in the marketplace and we will continue to adapt our commercial efforts to the fluid COVID environment in 2021 to bring CAPLYTA to even more adults with schizophrenia. As you heard from Sharon earlier, we're also looking forward with great anticipation to our potential label expansion in bipolar depression later this year and are well into our commercial planning for this exciting opportunity.

Today, there are only few approved treatment options for this underserved patient population. We expect the introduction of lumateperone to be a welcome addition to this market because it has demonstrated robust improvement in depressive symptoms and a favorable safety and tolerability profile and has the potential to be approved for the broadest range of patients. We plan to make the appropriate additions to our salesforce in advance of the bipolar depression PDUFA target action date and we will be prepared on Day 1 to seize this opportunity. We're proud of the strong commercial execution of the team and our successful launch of CAPLYTA. We continue to be very pleased by the CAPLYTA growth trajectory and our team will be ready to expand our commercial efforts to help even more adults with schizophrenia and patients with bipolar depression going forward.

I will now turn the call over to our Chief Financial Officer, Larry Hineline.

Lawrence J. Hineline -- Senior Vice President of Finance & Chief Financial Officer

Thank you, Mark. I will review our financial results for the fourth quarter and for the year ending December 31, 2020. In the fourth quarter we recorded net product revenue of CAPLYTA of $12.4 million compared to $7.4 million in the third quarter. No net product revenues were reported in the same period of 2019. Research and development expenses in the fourth quarter of 2020 were $14.3 million compared to $19.1 million for the same period in 2019. This decrease is due primarily to a decrease in manufacturing expense and a decrease of lumateperone clinical and non-clinical expenses. Selling, general and administrative expenses totaled $58.3 million for the fourth quarter.

This is compared to $22.8 million for the same period in the prior year. This increase is primarily due to an increase in sales related labor expenses and commercialization expenses. Net loss in the fourth quarter was $60.7 million compared to a net loss of $40.6 million for the same period in 2019. For the year, total revenues were $22.8 million and CAPLYTA net revenues were $22.5 million. No net product revenues were reported in 2019. Research and development expenses for the year ended 2020 were $65.8 million compared to $89.1 million for 2019. Selling, general and administrative expenses for the year ended 2020 were $186.4 million compared to $64.9 million for 2019.

Selling expenses for 2020 were $132.5 million as compared to pre-commercialization expenses of $32.5 million in 2019. General and administrative expenses for the year were $53.9 million as compared to $32.4 million for 2019. Net loss for the year ended 2020 was $227 million or a loss of $3.23 per share compared to a net loss of $147.7 million or $2.68 per share for 2019. Cash, cash equivalents, restricted cash and investment securities totaled $658.8 million at December 31, 2020.

This concludes our prepared remarks. Operator, could you please open the line for questions?

Questions and Answers:

Operator

Thank you. [Operator Instructions] our first question comes from Umer Raffat with Evercore. Please go ahead.

Bo Chen -- Evercore -- Analyst

Hi. This is Bo for Umer. Thanks for taking our questions. Two, if we may. First is, could you give us some color on the data package for the bipolar depression sNDA? And particularly, we're curious to know whether there is any updated drug interaction study of the UGT inhibitor such as [Indecipherable] co-administered with lumateperone. And maybe a follow-up question for Mark is on the commercial. Could you give us some updated thoughts on the duration of treatment and you mentioned continued prescription rate in your prepared remarks, which is comparable for Latuda and Vraylar. Should we then think about the duration of treatment is also similar to these antipsychotics? Thanks.

Sharon Mates -- Founder, Chairman and Chief Executive Officer

Thanks, Bo, for the question. I'll start, this is Sharon and then I'll ask Suresh, if he'd like to add anything. So you've asked us for some color on our data package. So yes, we have submitted our sNDAs for the treatment of bipolar depression and yes, there's updated information on the UGT's interaction and in our studies, we have not seen interaction and we think this is great news. So we have submitted all of our data and of course this will be part of our label discussions. Suresh, would you like to add anything on that?

Suresh Durgam -- Senior Vice President, Chief Medical Officer

No, nothing further to add. In fact, that we did submit the information to the FDA.

Sharon Mates -- Founder, Chairman and Chief Executive Officer

Yes, and then I think the second part, I hope that answers the first part of your question and then the second part of the question, is you directed toward Mark. So Mark, would you like to take that please?

Mark Neumann -- Executive Vice President, Chief Commercial Officer

Yeah, sure. Thanks Sharon and good morning, Bo. Thanks for your question about duration of therapy. And yes, this has been a very encouraging part of the launch thus far with CAPLYTA. And what I would say is, it is still too early to do sort of your classical compliance and persistency curves. We'll need several more months to be able to do that. However, what we are tracking very closely as an interim metric is the TRx to NRx ratio. And when we do that for CAPLYTA and we compare that to other recently launched oral antipsychotics at the same time in their launch, we find that CAPLYTA is actually outpacing those antipsychotics in terms of refill rate and in terms of TRx to NRx ratio and we find that very encouraging and consistent with the hypothesis that we had that the safety and tolerability profile for CAPLYTA would be received well by patients and allow them to stay on their therapy. So it's something we'll continue to watch and as we get more information around compliance and persistency curves, we'll share that information with you as well.

Bo Chen -- Evercore -- Analyst

Thank you very much.

Operator

Thank you. Your next question will come from Charles Duncan with Cantor Fitzgerald. Please go ahead.

Charles C. Duncan -- Cantor Fitzgerald -- Analyst

Thank you. Good morning. Sharon and team congrats on a great quarter and the pipeline expansion. I had a question on commercial and then one on the pipeline. Quickly, on commercial regarding the traction you're getting with prescribers looks good. But I'm wondering if for this year your goal is to focus on new prescribers or deepening the use prescription of lumateperone or CAPLYTA within a prescriber space? And then I'll come back and ask the pipeline question.

Sharon Mates -- Founder, Chairman and Chief Executive Officer

Mark, do you want to take that?

Mark Neumann -- Executive Vice President, Chief Commercial Officer

Yeah, sure. Thanks Charles and what I would say is, we have been pleased overall when we look at both the breadth and the depth of prescribing that supports the growth trajectory that we've seen on CAPLYTA thus far in launch. The answer to your question is we will continue to look to both extend the breath of prescribers. But also those have -- who have already tried CAPLYTA, we will be seeking to increase their depth of prescribing as well. And one of the things that is very encouraging to us is, the really favorable feedback that we get on the experience that both patients and physicians have been having with CAPLYTA early on in the launch. As you know early on in the launch, you want them to have a very positive experience with the medicine and when they do, then they're more likely to increase their depth of prescribing and that's something that we'll build upon that success that we had in 2020 as we go throughout 2021 as well.

Charles C. Duncan -- Cantor Fitzgerald -- Analyst

That makes sense. Thanks for the added color, Mark. On the pipeline just quickly it's a two-part question. I apologize for that. One is, bipolar. I'm trying to work out the timing and it seems like a recent press release was very likely driven by the acceptance of filing. So could I assume timelines if and sNDA takes only roughly six to 10 months, that that could -- PDUFA date could be in the third quarter. And then as a follow-up to that, in terms of pipeline expansion the ERP, the 1284 program looks very interesting to me and I'm just kind of wondering if you could provide a little more color on the target product profile for a deuterated or an ODT form of lumateperone and what is that you do, really like to achieve for that particular patient population, the elderly patient population? Thank you.

Sharon Mates -- Founder, Chairman and Chief Executive Officer

Okay, so you asked a bunch of questions. I'll start with the bipolar timing. I can then either go onto the 1284 question or maybe both Suresh and I'll take that one because I'm not sure I wrote down the entire question. But on the bipolar timing on our press release what we announced was that, we submitted recently. So I think that and we have guided to expect a standard review which is a 10-month review. So you can work out the numbers and see where that takes you, OK?

Charles C. Duncan -- Cantor Fitzgerald -- Analyst

Okay. That's helpful.

Sharon Mates -- Founder, Chairman and Chief Executive Officer

So that's on the bipolar timing. On our ODT, it is -- 1284 as you know is a new molecular entity and we believe it is well suited to study in the elderly population based on its pharmacologic characteristics. In our recently completed Phase 1 program we did find that 1284 was rapidly absorbed into the systemic circulation with metabolically stable and resulted in high systemic exposure. In these studies, we didn't report -- there were no serious adverse events in either group and in the elderly cohort. The reported adverse events were infrequent with the most common adverse event being transient dry mouth. Suresh, did you want to add to that at all about 1284?

Suresh Durgam -- Senior Vice President, Chief Medical Officer

Yeah, in terms of the safety profile you're correct. There was safe and well tolerated. There was no serious adverse events. And in fact, the elderly population had infrequent common adverse events with mainly transient dry mouth and we're also -- the orally disintegrating it allows for use in elderly population. They're pursuing indication in the elderly population. And we're mainly looking at behavioral differences in patient with dementia. Treatment of dementia related psychosis and treatment of certain depressive disorders in the elderly.

Charles C. Duncan -- Cantor Fitzgerald -- Analyst

Okay, that's helpful. Look forward to seeing that get under way in terms of clinical studies. Thanks for taking my questions.

Operator

Thank you. Our next question will come from Brian Abrahams with RBC Capital Markets. Please go ahead.

Leo Timashev -- RBC Capital Markets -- Analyst

Hello. This is Leo, on for Brian. Thanks for taking my question. I guess I was curious about thinking ahead to commercial performance in 2021. How are you thinking about adjusting your hybrid strategy or a potential shift in the pandemic toward the greater reopening to try to drive a greater sales inflection in CAPLYTA? And then sort of as a follow-up to that, as you look ahead to the bipolar launch and you've been interacting with prescribers. What's the sort of physician interest on the ground for the bipolar launch? Do these physicians care equally for the same factors as in schizophrenia like to lower e-profile or might be interested in other aspects such as the ease of doing or the efficacy? Thanks.

Sharon Mates -- Founder, Chairman and Chief Executive Officer

Hi, Leo. Great questions. I'll ask Mark, would you like to address them please?

Mark Neumann -- Executive Vice President, Chief Commercial Officer

Yeah, sure Leo. Thanks for your questions. And what I would say about our commercialization model is, we feel very good at this stage about the hybrid model that we have in place and again the hybrid model means that both our sales representatives as well as our speakers who do our promotional talks about CAPLYTA are equipped to do that either in an in-person environment, which is what they've always traditionally done over the years or because of what's happened with COVID to pivot to a virtual environment if they can't access physicians in an in-person manner.

Now, we would always prefer the interaction to be in-person. There's no substitute for that. But our representatives and speakers have become very adept at delivering their presentations in a virtual environment through Zoom, telephone, other mechanisms like that. And so what I would say is, we're actually -- I would say we're optimized for regardless of the environments that transpires with COVID. So COVID continues to be with us. It continues to impact patient care and our representatives are operating very effectively.

There's reasons for optimism that the COVID cases are beginning to come down and we'll begin to see the market open back up, physician offices become more accessible, clinics becoming more accessible etc. And when they do, our representatives and our speakers will pivot back to in-person engagements. But we do believe that there will be a permanent change in the commercialization model where we will supplement those in-person engagements with active digital engagements both by the representatives as well as through our other digital marketing initiative. So we think we're poised and we're well placed to make that transition back to a post-COVID world, if you would and be very effective in doing that. The second part of your question around bipolar from a commercial perspective prior to an approval our salesforce speakers, etc, do not engage on bipolar depression at all as it would be off label.

So I can't really comment on any feedback that we're getting in the field on bipolar depression. I can say in the market research that we do physicians recognize that some of the dynamics that exist in the schizophrenia marketplace where you have limitations of the current antipsychotics because of side effects and cycling of those patients through other antipsychotics also exists in bipolar depression and we believe that the favorable safety and tolerability profile that was seen in our bipolar clinical trials pretty much replicates what we saw in schizophrenia and that safety and tolerability profile has been very well received by physicians in the marketplace for schizophrenia and we would expect that to continue once we get the indication for bipolar depression as well. So I hope that answers your two questions. If there's anything that I can clarify just let me know.

Operator

Thank you. Our next question will come from Ashwani Verma with Bank of America. Please go ahead.

Ashwani Verma -- Bank of America Merrill Lynch -- Analyst

Hi there. Thanks for taking the questions. So I had two. For the ITI-333, which you're pursuing for opioid use disorder, is that similar to the target product profile of VIVITROL, which is for opioid dependence or are you using a slightly different approach? That's one. And as far as the LAI, are there any specific attributes to the molecule that make it easier, difficult to formulate in this kind of a formulation? You're aiming for one month dosing, so is that driven by Luma's profile or also factors in the competitive landscape?

Sharon Mates -- Founder, Chairman and Chief Executive Officer

Great. So I'll take that. And ITI-333 is a very different molecule from VIVITROL. First of all, it is a new opioid partial agonist with very low intrinsic activity. It does not have any substance use associated within at all. It is also 5HT2A antagonist. So it is a totally different mechanism of action from VIVITROL, so no comparison there. In terms of the LAI, yes there are some characteristics -- we have several formulations of our LAI and that's because it wasn't -- this was not an easy molecule to formulate for an LAI, it took a lot of development.

But we do believe that we have as I said we have several formulations. However we do think that the formulation that we're testing is an optimal formulation and it is administered subcutaneously. So we think that is an advantage. Patients have expressed a choice for a subcutaneous over an IM injection. If you asked another part of the question, I can't remember it. Maybe -- does that answer your question? The first formulation is, that we're testing is a one month formulation and we will go from there to other durations.

Ashwani Verma -- Bank of America Merrill Lynch -- Analyst

Got it. Okay. Thank you.

Operator

Thank you. Our next question comes from Jessica Fye with J.P. Morgan. Please go ahead.

Daniel Roy -- J.P. Morgan -- Analyst

Good morning. This is Daniel Roy for Jessica Fye. Thanks for taking our question. Two questions from me; one, while we understand that you haven't provided guidance for 2021 revenue, how comfortable are you with consensus numbers? And two, regarding 1284, how does the PK profile compare with that of lumateperone? Besides that you'll be developing, are there any other properties that makes it amenable to treat the indications that you're currently interested, dementia and others?

Sharon Mates -- Founder, Chairman and Chief Executive Officer

Right. So, thank you. Daniel. Earlier this year, we did say that we were comfortable with consensus numbers, which are about $110 million and we remain comfortable with those numbers. So that's your first question. We anticipate a strong build over the course of the year and particularly in the second half of the year when as Mark stated we anticipate COVID disruptions to be improving markedly. So we are comfortable and we are comfortable with our numbers. Moving to 1284, I think that we said that we do believe that both the molecule and the formulation of 1284 has some advantages to it for use in especially in particular in elderly patients because it's rapidly absorbed into the systemic circulation. It's metabolically very stable and it results in high systemic exposure.

Daniel Roy -- J.P. Morgan -- Analyst

Thank you.

Operator

Thank you. Our next question will come from Sumant Kulkarni with Canaccord. Please go ahead.

Sumant Kulkarni -- Canaccord -- Analyst

Morning. Thanks for taking my questions. My first one is actually a very specific one on 1284. Could you frame how dosing may have looked like relative to regular lumateperone in Phase 1 data that you've generated so far and then more specifically going forward versus the low dose that was used in the prior trial in older patients? And the second part of that is, is it fair to assume that you'll be using a 505(b)(2) pathway for this new molecular entity?

Sharon Mates -- Founder, Chairman and Chief Executive Officer

Hi, Sumant. That's a lot of questions. So, in dosing relative to Phase 1, we did a single ascending dose study. So, we did test two doses in a single ascending dose study and then in a multiple ascending dose study as well, where it was dosed once a day for seven days. I think as far as the regulatory pathway, this is a new molecular entity. We will have discussions with the appropriate regulatory authorities on that regulatory pathway as we move forward and we'll let you know as soon we know.

Sumant Kulkarni -- Canaccord -- Analyst

Got it. And then just on the load, the dosing in a Phase 2 or Phase 3 trial relative to the low dose of lumateperone that was used in the elderly patients in the prior trials?

Sharon Mates -- Founder, Chairman and Chief Executive Officer

Can you wait till we put it on ClinicalTrials.gov, please, what our dosing strategy is going to be? I think we'll do that soon. And I would rather -- I'm always uncomfortable of saying what we're going to do until we do it. So -- and you know that from us, we're very conservative and we will publish it on ClinicalTrials.gov as we go forward into Phase 2 studies on these different indications, which may be the same or may differ in the indication -- the dose may differ depending on the indication and we'll let you know.

Sumant Kulkarni -- Canaccord -- Analyst

Got it. Thanks. We'll check every day.

Operator

Thank you. Our next question will come from Bert Hazlett with BTIG. Please go ahead.

Bert Hazlett -- BTIG -- Analyst

Thank you. Thank you for taking the question. Congrats on the progress. I just have another question on 1284 -- two actually. First of all, you talked about it, the stabilizing lumateperone. Does it alter -- specifically alter the formulation persistence or behavior of any of the metabolites of lumateperone? And then secondly, could you remind us of the IP that you expect for lumateperone? How long do you expect exclusivity? Thanks.

Sharon Mates -- Founder, Chairman and Chief Executive Officer

Let me -- can you state the first part of your question again? I missed it.

Bert Hazlett -- BTIG -- Analyst

Yeah. Lumateperone has a number of metabolites as you're well aware. I'm just wondering whether the deuterated version alters the formulation persistence or any of the behavior or any of the metabolites of luma? And then again the IP, how long you're expecting exclusivity for lumateperone? Thanks.

Sharon Mates -- Founder, Chairman and Chief Executive Officer

For lumateperone or for 1284? Well, I can tell you, both. So, there are no new metabolites in 1284, and we qualify all metabolites. And again, as we go forward, we can describe the metabolite profile for you. We do have robust patent profile for both lumateperone and 1284. So, I think that -- if you're asking, 1284 is into the 2040s and lumateperone is very solid into the mid to late 2030s.

Bert Hazlett -- BTIG -- Analyst

Okay. Thank you for that. Look forward to the characterization of the metabolites. Thank you.

Operator

Thank you. Our next question will come from Graig Suvannavejh with Goldman Sachs. Please go ahead.

Graig Suvannavejh -- Goldman Sachs -- Analyst

Hi. Good morning and congrats on the quarter. Thanks for taking my questions. I've got two, please. One, I know it's early days, but I'm curious about your MDD program and I know you're expected to initiate Studies 501 and 502. I was wondering if you could just help us think about what that clinical Phase 3 trial program overall is going to look like in terms of expected time lines. And if we were to start thinking about perhaps adding revenue, just trying to get a sense of what the timelines looks like here? And how does the 403 Study if at all fit in supporting that registrational program?

And then my second question is maybe more on the financials and looking at 2021. I was wondering if you could provide a view on what the quarterly progression of opex spend will look like with respect to R&D and SG&A? Thanks.

Sharon Mates -- Founder, Chairman and Chief Executive Officer

Yeah. So, our adjunctive Studies 501 and 502 are studies looking at major depressive disorder as adjunctive to standard of care. And as we said, they are two studies, clinical conduct will begin this year, and I think you should expect two years for enrollment and readout of these studies. That is what is typical for these kinds of studies. They are conducted globally, including the US, and we will post them on ClinicalTrials.gov as we start each of these studies. Then, I think you asked -- before you get to the financials, I think the easy one on the financials is we are not giving quarterly guidance on our projections. And maybe if Larry has anything to add, he can add to that, but we...

Lawrence J. Hineline -- Senior Vice President of Finance & Chief Financial Officer

Yeah. I think it's -- yeah, we're not going to give quarterly or we can't give quarterly guidance. But I think it's safe to say that from the R&D perspective, we will see expenses increase over last year's expenses, 2020's expenses, and I would see them increasing quarter-to-quarter. So, no particular guidance, but certainly see an incline as we go through 2021.

Graig Suvannavejh -- Goldman Sachs -- Analyst

And, Sharon, just to ask if you could comment on how the 403 Study sits in the context of what you're trying to do to expand the opportunity for lumateperone?

Sharon Mates -- Founder, Chairman and Chief Executive Officer

Right. So, it is an expansion. I am glad you came back to that. It is an expansion of the opportunity for lumateperone. It is not part of the adjunctive studies in MDD. The Study 403 is looking at both bipolar and major depressive disorder in patients with mixed features. So, before we go further into that, maybe I'll ask Suresh, can you please define for the audience what mixed features are both in major depressive disorder and bipolar disorder? And then, I'll come back and talk about what we think the opportunity is again. Okay?

Suresh Durgam -- Senior Vice President, Chief Medical Officer

Yes. Thank you. We have -- mixed features is a condition, let's say, specified within the DSM-5 for both major depressive disorder and also bipolar disorder. Patients with MDD with mixed features have severity of illness -- increased severity of illness. They also have high rate of suicide ideation, high rates of suicides and also the high rates of recurrence of episodes. And also, there's higher co-morbidities and these are difficult to treat patients. And if these patients are not followed and filtered, patients with MDD have a potential to be diagnosed with bipolar disorder later on.

Now coming to patients with mixed features in the bipolar depression, they also are having the same features mainly of having some symptoms of [Indecipherable] symptoms of mania or hypomania and have full episodes of depression. And about a third of the patients in both populations, both in MDD and in bipolar depression have mixed features. Since these patients are difficult to treat and right now at this time, there is no specific medication to treat these conditions, this is a study we are following the 403 which was amended to include these patients. And this is a fully powered study as a registration study and it has been conducted to -- once the studies are done, we will speak to the FDA on the next steps regarding this.

Sharon Mates -- Founder, Chairman and Chief Executive Officer

So, just to follow up on that. We think this is a large unmet medical need. About a third of patients in MDD and about a third of patients in bipolar disorder exhibit these features. So -- and these patients as Suresh said are more difficult to treat, have more co-morbidities, and have increased rates of suicide and suicidal ideation. So, we think that these are important patient populations within each of these domains. And there are no approved drugs to treat these patients. So, they keep cycling through all available alternatives until that are -- and it's all of course off-label until hopefully you stumble on something that is helping the patients. So, we think that with a third of each patient populations that this is a huge unmet medical need and that we will look at the results of Study 403 and go to the FDA with these results and discuss the path forward for the indication. So, we're very excited about that as adding this to our label for lumateperone.

I think, operator, we might have time for one more question if there is a last question?

Operator

Yes. We do have a follow-up question from Umer Raffat with Evercore. Please go ahead.

Umer Raffat -- Evercore -- Analyst

Hi. Thanks so much for taking my question. I have a couple if I may, Sharon. One, theoretically given everything we know about the aniline metabolite formation, and how it lended itself more to that formation in non-human models than it did in human. Is there any sort of mechanistic reason to expect why the deuteration would change that just given everything we know from the past? And then secondly, as you're thinking about MDD studies going forward and indication expansions, would there be a consideration for possibly promoting the 1284 for those indications and not CAPLYTA? Thank you very much.

Sharon Mates -- Founder, Chairman and Chief Executive Officer

Yeah. So first of all, you can't improve on nothing. So, as you know, in human beings, as you said this -- those anilines are seen in species that are not humans, and so you can't improve if you -- on a lack of seeing something. So, 1284 is -- does not have aniline formation, neither did lumateperone in humans. So, that is not a question.

In the question about other indications for 1284, we are very pleased and uncomfortable with lumateperone in the present indications that we are studying. We are very excited about the studies that we have mentioned to you with 1284. We will -- as we go forward, we'll keep you apprised of any other indications that we decide to go into with 1284. But for the moment, what we're launching with and the path we're going down right now is the stated pathway that we told you about, the lumateperone and the stated pathway that we told you about for 1284. So, stay tuned.

Umer Raffat -- Evercore -- Analyst

Thank you.

Sharon Mates -- Founder, Chairman and Chief Executive Officer

And by the way, just since Evercore's still on, I hope I answered both questions in the beginning about the UGTs. Yes, we're very comfortable. We've had -- we've conducted all of our studies. We've submitted all the information to the FDA. So, that kind of dovetails with your questions.

Okay then. I want to -- I think we're over our time. I want to just thank everybody for participating on the call and thank you for all of your questions. They were very good questions and we look forward to keeping you apprised. It's a very, very busy year for Intra-Cellular and we look forward to updating you as we go forward with all of our programs. Thanks very much and, operator, you can now disconnect.

Operator

[Operator Closing Remarks]

Duration: 53 minutes

Call participants:

Juan Sanchez -- Vice President of Corporate Communications and Investor Relations

Sharon Mates -- Founder, Chairman and Chief Executive Officer

Mark Neumann -- Executive Vice President, Chief Commercial Officer

Lawrence J. Hineline -- Senior Vice President of Finance & Chief Financial Officer

Suresh Durgam -- Senior Vice President, Chief Medical Officer

Bo Chen -- Evercore -- Analyst

Charles C. Duncan -- Cantor Fitzgerald -- Analyst

Leo Timashev -- RBC Capital Markets -- Analyst

Ashwani Verma -- Bank of America Merrill Lynch -- Analyst

Daniel Roy -- J.P. Morgan -- Analyst

Sumant Kulkarni -- Canaccord -- Analyst

Bert Hazlett -- BTIG -- Analyst

Graig Suvannavejh -- Goldman Sachs -- Analyst

Umer Raffat -- Evercore -- Analyst

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