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On Monday, Mizuho (NYSE:MFG) Securities provided an update on Intra-Cellular Therapies Inc. (NASDAQ: NASDAQ:ITCI), following the company’s fourth-quarter 2024 results released last Friday. Analyst Steven Valiquette downgraded the stock to Neutral from Buy and adjusted the price target to $132 from the previous figure, reflecting the terms of the proposed acquisition of approximately $15 billion announced last month. For comprehensive analysis of ITCI’s financial health and valuation metrics, investors can access detailed research through InvestingPro, which provides extensive coverage of over 1,400 US stocks, including detailed M&A analysis and Fair Value estimates.
The report presented by Mizuho covered several aspects of the acquisition process. It detailed the sale process of ITCI, reviewed potential regulatory and antitrust issues due to therapeutic area overlaps between the companies, and analyzed the US antidepressant and antipsychotic markets where these overlaps are most significant. Additionally, the report identified other parties that might have been interested in the deal, though the analyst believes that the emergence of another bidder is unlikely at this stage.
Valiquette commented on the likelihood of the acquisition proceeding without regulatory roadblocks, citing recent precedent transactions as a reason for confidence in the deal’s closure. The analyst expects the acquisition, as proposed, to be finalized either in the second quarter of 2025, as guided by Johnson & Johnson (JNJ), or later in the year.
The reiteration of the Neutral rating and the new price target of $132 by Mizuho reflects a comprehensive assessment of the current situation surrounding Intra-Cellular Therapies. The analysis suggests a smooth progression of the acquisition process, with no significant obstacles anticipated from regulatory bodies. The adjustment in the price target is directly linked to the proposed terms of the acquisition, indicating a recalibration of expectations based on the latest available information. For investors interested in tracking similar M&A opportunities, InvestingPro offers real-time updates, comprehensive financial analysis, and expert insights on potential acquisition targets across various sectors.
In other recent news, LifeMD reported a notable increase in its third-quarter revenue, which rose by 38% to reach $53.4 million, with a gross margin improvement to 90.6%. The company has also seen a 30% rise in active telehealth subscribers, now totaling approximately 269,000. Amid these developments, LifeMD’s CEO, Justin Schreiber, will see his salary increase to $500,000 in 2025, as per an SEC filing. Lake Street Capital Markets has initiated coverage on LifeMD with a Buy rating and a price target of $12, highlighting the company’s rapid growth and expansion efforts, including a new pharmacy and broader insurance coverage. Meanwhile, Mizuho has rated LifeMD as Neutral with a price target of $7, citing significant growth in its GLP-1 Weight Management program but expressing concerns about the sustainability of subscription revenue. Mizuho projects that over half of LifeMD’s revenue will come from Weight Management programs by 2026. Both firms acknowledge LifeMD’s strategic advancements and potential for growth, though with varying levels of optimism. These developments reflect LifeMD’s ongoing efforts to strengthen its position in the virtual healthcare market.
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