The markets are up this afternoon after days in the red. Most stocks are up, and some like Intra-Cellular Therapies [NASDAQ: ITCI] are recording exponential gains. This stock is currently up by over 60% and gaining. This bullish breakout has seen the stock reverse all the losses it incurred over the past 3 months, and if it holds, could see the stock enter a new bull rally.
Today’s breakout comes after the company announced that it had got positive results from its study that was analyzing Lumateperone when used as adjunctive therapy in people suffering from bipolar depression. Delving into the details of the deal, the company stated that 42 mg of Lumeteperone had shown primary results that are statistically significant, and that it also met its secondary endpoints.
The company added that it was expecting to submit an SNDA (supplementary new drug application) for it to the FDA later this year or in early 2021. The company added that the study had returned an acceptable safety and tolerability profile that was fully in line with the company’s other trials on the treatment. The company further stated that all side effects including the rate of akathisia, changes in weight, extrapyramidal symptoms and restlessness were all the same as the placebo.
Commenting on the development, CEO Dr Sharon Mates stated that the program had confirmatory evidence of efficacy and that it had positive safety and tolerance in people with bipolar depression. He added that with the achievement of this clinical milestone, the treatment had the potential to improve the lives of people suffering from a wide array of mental health conditions, including schizophrenia.
With the progress that it has made with this treatment, the stock is well-positioned to grow in the near-term for several reasons. First, on the expectation of growth as the treatment gets closer to going to market, investors are likely to keep bidding up the stock. Secondly, the stock could see its value grow long-term if this treatment goes through the various steps and is approved by the FDA. That’s because it would significantly add to its bottom-line. This increase in intrinsic value would see the stock keep gaining in the near-term.
The stock also stands to gain from the increased upside momentum in the market. As markets rise, stocks with strong fundamentals stand to outperform the market.
About Intra-Cellular Therapies Inc
Intra-Cellular Therapies Inc is a biotech company that makes new treatments for neurological diseases. It is based in New York, New York.