Intra-Cellular Therapies is Thursday's pick for IBD 50 Growth Stocks To Watch as the biotech stock is in a cup-with-handle base. The pharmaceutical company beat and raised sales estimates for its one drug on the market, Caplyta.
Intra-Cellular Therapies develops treatments for neurological disorders. Caplyta, its only drug approved by the Food and Drug Administration, treats symptoms from bipolar depression.
But the company has five other potential drugs in its pipeline at various clinical and preclinical phases. These medications look to treat depression, anxiety, Parkinson's disease, opioid use disorder and mood disorders.
Biotech Stock In A Base
Intra-Cellular Therapies is in a stage one cup-with-handle base with an 82 buy point, according to MarketSurge pattern recognition. Shares sank 5.8% Wednesday in heavier-than-average volume after the company reported second-quarter results.
The biotech stock continued to slide Thursday with a drop of less than 1%. Shares pulled back to their 50-day moving average Wednesday and are testing the line.
The base is the third one to form since late December after both previous breakouts failed to progress.
Sales Climb, Losses Look To Shrink
The company reported a loss for the second quarter that was smaller than expected, with sales that came in ahead of estimates. Its Caplyta net sales grew 46% over last year's same quarter. Intra-Cellular raised its 2024 sales forecast for the drug. Quarterly sales growth has slowed but is expected to increased 36%, 42% and 34% over the next three quarters.
Its full-year profit deficits have been shrinking, with a loss of $1.46 a share in 2023 whittling down to an expected shortfall of 64 cents a share in 2024. FactSet estimates show that reversing to profits of 65 cents a share in 2025.
Mutual funds own 67% of shares while management owns 3%. Funds have been adding the biotech stock, with 672 owning shares since June, up from 654 in March and 601 in December.
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