Please ensure Javascript is enabled for purposes of website accessibility

Why Intra-Cellular Therapies Was Weak This Week

By Eric Volkman – Aug 13, 2021 at 4:48PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company's second-quarter net loss was a bit deeper than analysts expected.

What happened

Psychiatric and neurologic drugs developer Intra-Cellular Therapies (ITCI -1.42%) was a cold stock this week. After reporting its second-quarter results on Monday, the company's shares sank and to date have not recovered; at Friday's close, they were down by over 13% over the five-day stretch.

So what

For the quarter, the company booked $20 million in revenue, more than 10 times what it made in the same period of 2020. The company's sales are almost entirely dependent on its one commercialized product, schizophrenia drug Caplyta, which was approved at the end of 2019.

Person using telemedicine services.

Image source: Getty Images.

But a new(ish) product on the market requires more marketing. As a result, the company's selling, general, and administrative costs ballooned to nearly $70 million from the Q2 2020 tally of $41 million. This, in turn, resulted in a steeper net loss of $68.7 million ($0.85 per share) than the year-ago shortfall of $63.7 million.

These were mixed results when considering analyst estimates. Prognosticators following the healthcare stock were modeling $19.4 million on the top line, but were expecting a more modest net loss of $0.80 per share.

Now what

Intra-Cellular's Q2 wasn't as bad as the stock price swoon might indicate. Also, prescriptions for Caplyta rose by 22% on a quarter-by-quarter basis alone in Q2, and the company is aiming for label expansion into bipolar depression. It has filed for a supplemental New Drug Application with the FDA for this; the PDUFA target action date is Dec. 17.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Stocks Mentioned

Intra-Cellular Therapies Stock Quote
Intra-Cellular Therapies
ITCI
$53.45 (-1.42%) $0.77

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.