Needham remains positive on Intra-Cellular ahead of Caplyta readouts

Needham analyst Ami Fadia keeps a Buy rating and $82 price target on Intra-Cellular going into the April readouts of its Study 501 for lumateperone in major depressive disorder, or MDD. The firm sees a 60% probability of successfor the upcoming Phase 3 data readouts in MDD based on the body of evidence for Caplyta based on prior studies as well as how the trials are being conducted. Needham adds that in the event of a positive readout, it sees 30% upside in the stock price, while negative data would prompt a mid-teen decline, though the firm also assigns respective probabilities of the two outcomes at 60% and 15%.