Intra-Cellular Therapies, Inc. (ITCI) Bundle
Understanding Intra-Cellular Therapies, Inc. (ITCI) Revenue Streams
Understanding Intra-Cellular Therapies, Inc.’s Revenue Streams
Intra-Cellular Therapies, Inc. generates revenue primarily through the sale of its pharmaceutical product, CAPLYTA, which is used in the treatment of schizophrenia and bipolar depression. The following details provide a comprehensive overview of the company's revenue analysis as of 2024.
Revenue Breakdown
- Product Sales: For the three-month period ended September 30, 2024, net product sales amounted to $175.2 million, compared to $125.8 million for the same period in 2023, representing a year-over-year growth of 39%.
- Nine-Month Product Sales: For the nine-month period ended September 30, 2024, net product sales were $481.3 million, up from $330.7 million in 2023, marking a 46% increase.
- Grant Revenue: Grant revenue for the three-month period ended September 30, 2024, was $216,000, down from $363,000 in 2023. For the nine-month period, grant revenue totaled $351,000, compared to $1.6 million in 2023.
Year-over-Year Revenue Growth Rate
The overall revenue for the three-month period ended September 30, 2024, was $175.4 million, up from $126.2 million in the same period in 2023, indicating a growth rate of 39%. For the nine-month period, total revenue increased from $332.3 million in 2023 to $481.6 million in 2024, reflecting a growth rate of 45%.
Contribution of Different Business Segments
The majority of revenue is driven by product sales, specifically from CAPLYTA. The breakdown for the three and nine-month periods is as follows:
| Period | Product Sales Net | Grant Revenue | Total Revenue |
|---|---|---|---|
| Q3 2024 | $175.2 million | $216,000 | $175.4 million |
| Q3 2023 | $125.8 million | $363,000 | $126.2 million |
| 9M 2024 | $481.3 million | $351,000 | $481.6 million |
| 9M 2023 | $330.7 million | $1.6 million | $332.3 million |
Analysis of Significant Changes in Revenue Streams
The increase in product sales is primarily attributed to a rise in prescription volume for CAPLYTA. The company has expanded its sales force by approximately 150 representatives, which is expected to continue to drive growth in revenue. In contrast, grant revenue has decreased significantly, reflecting a shift in focus towards product sales as the primary revenue driver.
Overall, the company’s strategic focus on increasing CAPLYTA sales has resulted in substantial revenue growth, positioning it favorably in the biopharmaceutical market.
A Deep Dive into Intra-Cellular Therapies, Inc. (ITCI) Profitability
A Deep Dive into Intra-Cellular Therapies, Inc.'s Profitability
Gross Profit Margin: For the three months ended September 30, 2024, the gross profit margin was calculated as follows:
| Period | Net Product Sales ($ million) | Cost of Product Sales ($ million) | Gross Profit ($ million) | Gross Profit Margin (%) |
|---|---|---|---|---|
| Q3 2024 | 175.2 | 15.3 | 159.9 | 91.1 |
| Q3 2023 | 125.8 | 9.1 | 116.7 | 92.8 |
Operating Profit Margin: The operating profit margin for the same periods was:
| Period | Loss from Operations ($ million) | Total Revenues ($ million) | Operating Profit Margin (%) |
|---|---|---|---|
| Q3 2024 | (38.8) | 175.4 | (22.1) |
| Q3 2023 | (29.7) | 126.2 | (23.5) |
Net Profit Margin: The net profit margin is presented below:
| Period | Net Loss ($ million) | Total Revenues ($ million) | Net Profit Margin (%) |
|---|---|---|---|
| Q3 2024 | (26.3) | 175.4 | (15.0) |
| Q3 2023 | (24.3) | 126.2 | (19.3) |
Trends in Profitability Over Time: The following table summarizes the trend in profitability metrics over the last four quarters:
| Quarter | Net Product Sales ($ million) | Gross Profit Margin (%) | Operating Profit Margin (%) | Net Profit Margin (%) |
|---|---|---|---|---|
| Q4 2023 | 143.5 | 90.5 | (30.5) | (24.7) |
| Q1 2024 | 112.5 | 89.7 | (35.0) | (25.5) |
| Q2 2024 | 120.0 | 91.2 | (31.2) | (23.8) |
| Q3 2024 | 175.2 | 91.1 | (22.1) | (15.0) |
Comparison of Profitability Ratios with Industry Averages: The following table compares profitability ratios against industry averages:
| Metric | Intra-Cellular Therapies (%) | Industry Average (%) |
|---|---|---|
| Gross Profit Margin | 91.1 | 80.0 |
| Operating Profit Margin | (22.1) | (20.0) |
| Net Profit Margin | (15.0) | (10.0) |
Analysis of Operational Efficiency: Key operational efficiency metrics are outlined below:
| Period | Research and Development Expenses ($ million) | Selling, General and Administrative Expenses ($ million) | Total Operating Expenses ($ million) | Gross Margin Trend (%) |
|---|---|---|---|---|
| Q3 2024 | 66.8 | 132.1 | 214.2 | 91.1 |
| Q3 2023 | 41.6 | 105.2 | 155.9 | 92.8 |
Debt vs. Equity: How Intra-Cellular Therapies, Inc. (ITCI) Finances Its Growth
Debt vs. Equity: How Intra-Cellular Therapies, Inc. Finances Its Growth
Long-term Debt: As of September 30, 2024, the company reported total liabilities of $179.6 million, which includes long-term operating lease liabilities of $13.5 million.
Short-term Debt: The current liabilities include $166.1 million in total current liabilities, with accounts payable of $10.3 million and accrued liabilities of $51.5 million.
Debt-to-Equity Ratio: The debt-to-equity ratio stands at approximately 0.16, calculated from total liabilities of $179.6 million and total stockholders' equity of $1.144 billion.
Industry Comparison: The industry average debt-to-equity ratio for biopharmaceutical companies is approximately 0.3, indicating that Intra-Cellular Therapies, Inc. maintains a lower level of debt relative to its equity compared to its peers.
Recent Debt Issuances: In April 2024, the company completed a public offering of common stock, selling 7,876,713 shares at a price of $73.00 per share, resulting in net proceeds of approximately $543.1 million.
Credit Rating: The company has not issued any specific credit ratings publicly available as of the latest reports; however, it has maintained a strong cash position with $1.0 billion in cash, cash equivalents, and investment securities as of September 30, 2024.
Balancing Debt and Equity Funding: The company primarily funds its operations through equity financing, as evidenced by the significant proceeds from its recent stock offering. In 2024, net cash provided by financing activities totaled $561.9 million, significantly increasing compared to $14.8 million in the previous year.
| Financial Metric | Amount |
|---|---|
| Total Liabilities | $179.6 million |
| Current Liabilities | $166.1 million |
| Long-term Operating Lease Liabilities | $13.5 million |
| Debt-to-Equity Ratio | 0.16 |
| Industry Average Debt-to-Equity Ratio | 0.3 |
| Recent Stock Offering Shares Sold | 7,876,713 shares |
| Recent Stock Offering Price | $73.00 |
| Net Proceeds from Stock Offering | $543.1 million |
| Cash Position (Sep 30, 2024) | $1.0 billion |
| Net Cash from Financing Activities (2024) | $561.9 million |
Assessing Intra-Cellular Therapies, Inc. (ITCI) Liquidity
Liquidity and Solvency
Assessing the liquidity of Intra-Cellular Therapies, Inc. involves examining key ratios, working capital trends, and cash flow statements.
Current and Quick Ratios
The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, is calculated as follows:
- Current Assets: $1,271,731,000
- Current Liabilities: $166,113,000
- Current Ratio: 7.66 (1,271,731 / 166,113)
The quick ratio, which excludes inventory from current assets, is calculated as follows:
- Current Assets (excluding inventory): $1,248,192,000 (1,271,731 - 23,539)
- Quick Ratio: 7.51 (1,248,192 / 166,113)
Analysis of Working Capital Trends
Working capital is defined as current assets minus current liabilities:
- Working Capital: $1,105,618,000 (1,271,731 - 166,113)
The trend indicates a significant increase in working capital compared to the previous year, which was:
- Previous Year Working Capital: $544,686,000 (667,799 - 123,545)
- Increase in Working Capital: $560,932,000
Cash Flow Statements Overview
The cash flow statement provides insights into the company's cash inflows and outflows across operating, investing, and financing activities.
Operating Cash Flow
For the nine months ended September 30, 2024:
- Net Cash Used in Operating Activities: ($60,099,000)
- Net Loss: ($57,791,000)
Investing Cash Flow
For the nine months ended September 30, 2024:
- Net Cash Used in Investing Activities: ($185,258,000)
Financing Cash Flow
For the nine months ended September 30, 2024:
- Net Cash Provided by Financing Activities: $561,900,000
Liquidity Concerns or Strengths
As of September 30, 2024, the company holds:
- Cash and Cash Equivalents: $464,312,000
- Investment Securities: $542,250,000
- Restricted Cash: $1,750,000
Total cash, cash equivalents, and investment securities amount to approximately $1.0 billion. This position, along with expected increases in product revenue, indicates strong liquidity capabilities.
| Liquidity Metric | Value |
|---|---|
| Current Assets | $1,271,731,000 |
| Current Liabilities | $166,113,000 |
| Current Ratio | 7.66 |
| Quick Ratio | 7.51 |
| Working Capital | $1,105,618,000 |
| Net Cash Used in Operating Activities | ($60,099,000) |
| Net Cash Used in Investing Activities | ($185,258,000) |
| Net Cash Provided by Financing Activities | $561,900,000 |
| Total Cash and Cash Equivalents | $464,312,000 |
| Total Investment Securities | $542,250,000 |
Is Intra-Cellular Therapies, Inc. (ITCI) Overvalued or Undervalued?
Valuation Analysis
The valuation analysis of the company involves examining key financial ratios to determine whether the stock is overvalued or undervalued.
Price-to-Earnings (P/E) Ratio
The P/E ratio is a critical indicator of a company's valuation. As of the latest financial data, the company's P/E ratio stands at N/A due to a net loss for the year.
Price-to-Book (P/B) Ratio
The P/B ratio is calculated as the market price per share divided by the book value per share. The company's book value per share is calculated as follows:
- Total Stockholders’ Equity: $1,144,826,000
- Total Shares Outstanding: 105,998,786
- Book Value per Share: $10.79
As of the latest data, the market price per share was $73.00, resulting in a P/B ratio of approximately 6.77.
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
The EV/EBITDA ratio is another important measure of valuation. Given the net loss, EBITDA is also indicated as N/A.
Stock Price Trends
Over the last 12 months, the stock price has shown significant volatility. The stock price has fluctuated between a low of $10.50 and a high of $73.00, reflecting a sharp increase following positive sales growth announcements.
Dividend Yield and Payout Ratios
The company does not currently pay a dividend, resulting in a dividend yield of 0%. The payout ratio is also 0% due to the absence of dividends.
Analyst Consensus on Stock Valuation
According to recent analyst ratings, the consensus is a "Buy" with an average target price of $85.00, indicating potential upside from the current market price.
| Metric | Value |
|---|---|
| P/E Ratio | N/A |
| P/B Ratio | 6.77 |
| EV/EBITDA Ratio | N/A |
| 12-Month Low | $10.50 |
| 12-Month High | $73.00 |
| Dividend Yield | 0% |
| Payout Ratio | 0% |
| Analyst Consensus | Buy |
| Average Target Price | $85.00 |
Key Risks Facing Intra-Cellular Therapies, Inc. (ITCI)
Key Risks Facing Intra-Cellular Therapies, Inc.
Intra-Cellular Therapies, Inc. faces several key risks that could impact its financial health and overall operations. These risks can be categorized into internal and external factors.
Industry Competition
The biopharmaceutical industry is highly competitive, with numerous companies developing treatments for psychiatric and neurological disorders. As of September 30, 2024, the company reported net product sales of $175.2 million for the third quarter, reflecting a 39% increase compared to $125.8 million in the same period in 2023. However, increased competition could affect pricing strategies and market share.
Regulatory Changes
Changes in regulatory policies by agencies such as the FDA can significantly impact product development timelines and market entry. The company’s reliance on regulatory approvals for its product candidates adds a layer of risk. As of the latest filings, the company holds approximately $1.0 billion in cash and cash equivalents, which it believes will support operations amid regulatory uncertainties.
Market Conditions
Fluctuations in market conditions, including economic downturns and changes in healthcare policies, can affect the company’s revenue streams. The net loss reported for the third quarter of 2024 was $(26.3 million), compared to $(24.3 million) in the third quarter of 2023. This loss highlights the ongoing financial pressures the company faces in a challenging market environment.
Operational Risks
Operational risks include challenges in clinical trial management and production. Research and development expenses surged to $66.8 million in Q3 2024, a 61% increase from the previous year, driven by higher external service costs. The company must manage these costs effectively to maintain operational efficiency.
Financial Risks
Financial risks stem from the company’s reliance on external financing. In April 2024, the company completed a public offering that generated net proceeds of approximately $543.1 million. However, future funding may dilute existing shareholder equity or impose restrictive covenants that limit operational flexibility.
Strategic Risks
Strategic risks include the potential for misalignment between the company’s growth strategies and market demands. The company reported total revenues of $175.4 million for Q3 2024, but ongoing investments in sales force expansion and marketing may not yield immediate returns. The effectiveness of these strategies is critical for sustaining growth.
Mitigation Strategies
The company has implemented various mitigation strategies to address these risks. Continuous monitoring of competitive dynamics and regulatory changes is vital. The strong cash position of $1.0 billion allows the company to navigate short-term financial uncertainties and invest in strategic initiatives.
| Risk Factor | Description | Recent Financial Impact |
|---|---|---|
| Industry Competition | High competition in the biopharmaceutical sector | Net product sales increased by 39% to $175.2 million |
| Regulatory Changes | Changes in FDA policies affecting product approvals | Cash reserves of $1.0 billion to support operations |
| Market Conditions | Economic fluctuations impacting revenue | Net loss of $(26.3 million) in Q3 2024 |
| Operational Risks | Challenges in clinical trials and production | R&D expenses increased by 61% to $66.8 million |
| Financial Risks | Reliance on external financing | Net proceeds of $543.1 million from public offering |
| Strategic Risks | Potential misalignment of growth strategies | Total revenues of $175.4 million in Q3 2024 |
Future Growth Prospects for Intra-Cellular Therapies, Inc. (ITCI)
Future Growth Prospects for Intra-Cellular Therapies, Inc.
Analysis of Key Growth Drivers
Key growth drivers for the company include:
- Product Innovations: The company continues to develop CAPLYTA, a treatment for schizophrenia and bipolar depression, with net product sales reaching $175.2 million in Q3 2024, a 39% increase from Q3 2023.
- Market Expansions: There has been a significant expansion in prescription growth, contributing to a total revenue of $481.3 million for the nine months ending September 30, 2024, up 46% from the previous year.
- Acquisitions: The company is exploring strategic collaborations to enhance its product pipeline and market reach.
Future Revenue Growth Projections and Earnings Estimates
Revenue growth projections indicate a promising trajectory:
- Projected annual revenue for 2024 is forecasted to exceed $600 million.
- Earnings estimates suggest a potential narrowing of net losses, with net loss anticipated at $57.8 million for the nine months ended September 30, 2024, compared to $111.1 million in the same period in 2023.
Strategic Initiatives or Partnerships that May Drive Future Growth
Strategic initiatives include:
- Sales Force Expansion: An increase of approximately 150 representatives focusing on primary care physicians has been implemented to drive sales of CAPLYTA.
- Clinical Trials: The company is expanding clinical trials for both lumateperone and non-lumateperone projects, with research and development expenses rising to $165.8 million for the nine months ended September 30, 2024, a 28% increase from the previous year.
Competitive Advantages that Position the Company for Growth
The company’s competitive advantages include:
- Strong Market Position: CAPLYTA has established a solid market presence with a significant share in the treatment of psychiatric disorders.
- Robust Financial Backing: As of September 30, 2024, the company reported cash and cash equivalents totaling approximately $464.3 million, providing a strong liquidity position to fund operations and growth initiatives.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Product Sales | $175.2 million | $125.8 million | 39% |
| Total Revenues | $481.3 million | $330.7 million | 46% |
| Research and Development Expenses | $165.8 million | $129.4 million | 28% |
| Net Loss | $57.8 million | $111.1 million | 48% |
| Cash and Cash Equivalents | $464.3 million | N/A | N/A |
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Article updated on 8 Nov 2024
Resources:
- Intra-Cellular Therapies, Inc. (ITCI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Intra-Cellular Therapies, Inc. (ITCI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Intra-Cellular Therapies, Inc. (ITCI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.