ITCI Stock Rises 15% on Settling Caplyta Patent Litigation With Sandoz

CytomX Therapeutics (CTMX) - Estimates for 2024 loss per share have remained constant at 5 cents [1] - Estimates for 2025 loss per share have remained constant at 35 cents [1] - The stock has lost 19 3% in the past three months [1] - Earnings beat estimates in two of the trailing four quarters with an average surprise of 115 70% [1] Intra-Cellular Therapies (ITCI) - Shares rallied 14 9% after announcing a settlement agreement with Sandoz regarding Caplyta patent litigation [2] - The settlement resolves patent litigation related to Sandoz's attempt to market a generic version of Caplyta before patent expiration [3] - Caplyta is approved for treating schizophrenia and bipolar depression in adults and is the only approved treatment for bipolar depression [4] - The FDA approved new dosage strengths of Caplyta in 2022 for patients taking CYP3A4 inhibitors or with hepatic impairment [5] - Shares have gained 28 5% in the past three months against the industry's 12 7% decline [5] - The stock gained 35% in pre-market hours after Johnson & Johnson announced a definitive agreement to acquire ITCI for approximately $14 6 billion [5] - Sandoz can start selling generic versions of Caplyta on July 1 2040 or earlier under specific conditions [6] - Similar patent litigation against other parties is still ongoing [8] - Caplyta is ITCI's only marketed product and generated $481 3 million in net product sales in the first nine months of 2024 a 46% increase year-over-year [9] - Sandoz was spun off from Novartis in 2023 and is now an independent company [10] Castle Biosciences (CSTL) - 2024 earnings per share estimates have remained constant at 34 cents [12] - 2025 loss per share estimates have remained constant at $1 84 [12] - Shares have lost 11 7% in the past three months [12] - Earnings beat estimates in each of the trailing four quarters with an average surprise of 172 72% [12]