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The Zacks Analyst Blog Highlights United Therapeutics, Intra-Cellular Therapies, Immunocore Holdings and Eli Lilly

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For Immediate Release

Chicago, IL – December 22, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: United Therapeutics Corp. (UTHR - Free Report) , Intra-Cellular Therapies, Inc. (ITCI - Free Report) , Immunocore Holdings plc (IMCR - Free Report) and Eli Lilly and Co. (LLY - Free Report)

Here are highlights from Wednesday’s Analyst Blog:

3 Drug Stocks Wall Street Analysts Are Bullish About

The drug and biotech sector has had a turbulent ride in 2022. While the year started on an encouraging note, as the pandemic lost steam due to an increase in vaccination rates and immunity, rising inflation and uncertain macro environment impacted the performance of major economies thereafter.

As the pandemic eased out, demand for key drugs normalized and the focus shifted to the development of new drugs and pipeline. On the flip side, demand for COVID-19 treatments declined, thereby impacting the top line of the companies, which had immensely benefited from the same in 2021.

Nevertheless, new drug approvals, pipeline development and an increase in M&A activity maintain investor sentiment for the broader drug and biotech sector even as the risk of global recession looms large. 

The sector had earlier braved the challenges of the pandemic, by developing vaccines and treatments in record time, thereby enabling the world to get back on track. Moreover, increasing and persistent demand for better drugs and treatments keeps the sector going even as the threat of additional COVID-19 waves, rising inflation, recession and energy prices pose challenges.

Here we discuss three drug/biotech stocks, which put up a good show in 2022 and are likely to maintain the same in 2023 on the back of a solid portfolio and a promising pipeline. These are United Therapeutics Corp., Intra-Cellular Therapies, Inc. and Immunocore Holdings plc.

United Therapeutics

United Therapeutics has a wide portfolio of pulmonary arterial hypertension (PAH) drugs namely – Tyvaso, an inhaled formulation of the prostacyclin analogue treprostinil, approved by the FDA and in other countries to improve exercise ability in patients with PAH;  Remodulin, a continuously-infused formulation of treprostinil, approved by the FDA for subcutaneous and intravenous administration to diminish symptoms associated with exercise in patients with PAH;  Orenitram, a tablet dosage form of treprostinil, approved by the FDA to delay disease progression and improve exercise capacity in PAH patients; and Adcirca, an oral PDE-5 inhibitor approved by the FDA to improve exercise ability in PAH patients. 

The company also has another drug in its portfolio called Unituxin, a monoclonal antibody approved in the United States, Canada, and Japan for the treatment of high-risk neuroblastoma. The company sells Adcirca in partnership with Eli Lilly and Co..

Sales of the company's treprostinil-based products have shown a steady increase on continued label expansions. The Tyvaso label was expanded in March 2021 to include the treatment of pulmonary hypertension associated with interstitial lung disease (PH-ILD). In May 2022, the FDA approved Tyvaso Dry Powder Inhaler (DPI) formulation for PAH and PH-ILD. Tyvaso is also being evaluated in other indications and a potential approval will further boost the growth prospects of the drug.

United Therapeutics has put up a strong performance in 2022 with shares gaining 26.8% so far against the industry's decline of 31.3%.

Earnings estimates for 2022 and 2023 have risen by $1.93 and $2.83 in the past 60 days.  The current average target price of $285 for UTHR represents an upside of 4.91%. The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Intra-Cellular Therapies

Intra-Cellular Therapies is a biopharmaceutical company, primarily focusing on the discovery, development and commercialization of drugs for neuropsychiatric and neurological disorders.  The company obtained FDA approval for Caplyta (lumateperone) in December 2019 for the treatment ofschizophrenia in adults (42mg/day) and the drug was launched in late March 2020.

The drug's label was expanded by the FDA in December 2021 for the treatment of bipolar depression in adults (42mg/day) as monotherapy and as an adjunctive therapy with lithium or valproate. In April 2022, the FDA approved two new dosage strengths of CAPLYTA, 10.5 mg and 21 mg capsules, to provide dosage recommendations for patients concomitantly taking strong or moderate CYP3A4 inhibitors and 21 mg for patients with moderate or severe hepatic impairment.

The uptake of the drug has been encouraging in the bipolar depression space despite the inherent challenges in the market. Meanwhile, lumateperone is in late-stage development as a novel treatment for major depressive disorders (MDD) and expects to file a supplemental new drug application with the FDA for the approval of lumateperone as an adjunctive therapy to antidepressants for the treatment of MDD in 2024. A phase III study evaluating lumateperone for the prevention of relapse in patients with schizophrenia has also been initiated. A potential approval of the drug for additional indications will boost the growth prospects.

Intra-Cellular Therapies' current average target price of $70 represents an upside of 36.24%. The stock currently carries a Zacks Rank #2. Loss estimates for 2022 and 2023 have narrowed 49 cents and 29 cents, respectively in the past 60 days.

Immunocore

Immunocore is focused on the development of novel class of T cell receptor (TCR) bispecific immunotherapies designed to treat a broad range of diseases, including cancer, autoimmune and infectious diseases. The company's most advanced oncology TCR therapeutic, KIMMTRAK, the world's first soluble TCR therapy has been approved for the treatment of adult patients with unresectable or metastatic uveal melanoma in the United States, European Union, and many other countries.  The company is also developing a deep pipeline in multiple therapeutic areas, including five clinical-stage programs in oncology and infectious disease, advanced pre-clinical programs in autoimmune disease and multiple earlier pre-clinical programs.

KIMMTRAK's performance has been encouraging and the company continues to add new accounts. As of Sep 30, 2022, there were 180 new accounts prescribing KIMMTRAK in the United States.  The company recently announced a private investment in public equity financing with four existing investors for net proceeds of $139.6 million, which along with anticipated revenues from KIMMTRAK and cash and cash equivalents on hand should extend the company's cash runaway through 2025.

Immunocore currently carries a Zacks Rank #2. Loss estimates for 2022 and 2023 have narrowed 71 cents and 99 cents, respectively, in the past 60 days.  The stock has surged 68.1% in the year so far.  The current average target price of $77.67 represents an upside of 33.89%.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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