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In a remarkable display of market confidence, Intra-Cellular Therapies Inc. (NASDAQ:ITCI) stock has reached an all-time high, touching a price level of $128.01. According to InvestingPro data, the stock’s RSI indicates overbought conditions, with the company maintaining a strong financial health score of 3.28 out of 5. This significant milestone underscores the biopharmaceutical company’s impressive performance over the past year, which has seen the stock’s value surge by 81.78%. With a robust current ratio of 7.66 and moderate debt levels, investors have shown increasing enthusiasm for Intra-Cellular’s prospects, propelling the stock to new heights and reflecting a bullish outlook on the company’s pipeline and potential for growth in the biotech sector. Discover 13 additional key insights about ITCI with an InvestingPro subscription, including detailed valuation metrics and growth forecasts.
In other recent news, Intra-Cellular Therapies has been the focus of several analyst adjustments following the announcement of its acquisition by Johnson & Johnson. Canaccord Genuity downgraded the stock from Buy to Hold, while raising the price target to $132. Similarly, RBC Capital Markets and Piper Sandler also downgraded their ratings but increased their price targets to $132. The adjustments reflect the acquisition price and the anticipated closing of the deal.
Intra-Cellular’s lead drug, Caplyta, has been recognized for its strong commercial performance in treating schizophrenia and bipolar depression, and is expected to receive approval for use in major depressive disorder later in the year. The acquisition of Intra-Cellular aligns with Johnson & Johnson’s strategy of strengthening its neuroscience franchise, adding Caplyta to its portfolio along with other early-stage development prospects.
However, S&P Global Ratings has placed Johnson & Johnson’s ’AAA’ credit rating on CreditWatch Negative due to the acquisition, indicating potential downgrades. The acquisition is expected to raise Johnson & Johnson’s leverage, surpassing the downside trigger for the current rating. Despite this, projections suggest that Johnson & Johnson will lower its leverage by the end of 2026.
Lastly, RBC Capital Markets analysts have expressed concerns about potential risks to biotech stocks following the resignation of Dr. Patrizia Cavazzoni from the U.S. Food and Drug Administration (FDA). The leadership change might affect the agency’s functioning, particularly in terms of drug review processes and regulatory flexibility, which could influence companies like Intra-Cellular Therapies with active FDA engagements.
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