With increasing concern over mental health in last few years, the medicines like Caplyta (lumateperone) from Intra-Cellular Therapies Inc. (NASDAQ:ITCI) have been selling well. Caplyta is an atypical antipsychotic drug that is used to treat schizophrenia and bipolar depression; two paramount psychological disorders.

Since Calypta was approved for market by the FDA in December 2019, ITCI witnesses an impressive sales increase. ITCI has grown 18.31% within the last 12 quarters from only $26 million in the Q4 2021 to $175 million in Q3 2024.

• Warning! GuruFocus has detected 4 Warning Sign with ITCI.

Caplyta works by changing neurotransmitter in the brain that could assist in alleviating the signs of hallucination, paranoid disposition or low mood in patients with schizophrenia and bipolar depression

Recently ITCI secured its place by tackling down Sandoz by settling patent litigation over Caplyta, permitting Sandoz to only can sell generic versions of Caplyta after July 1, 2040. And there has been a talk on acquisitionprospects by Johnson & Johnson (JNJ) for $10 billion, which has enhanced investor confidence and recently increase the stock market performance.

Over the years, ITCI runs a unique business operation that run by strong capital despite tens of millions of dollars spent for clinical trials and finally the product is well accepted by the market.

As the psychotic drug maker keeps making sales, the ROIC (Return on Invested Capital) starts to be positive and if the trend continues then in near future the ROIC will likely exceeds the WACC (Weighted Average Cost of Capital), signaling a turn-around potential in company performance that could lead to profitability that has never happened before in the company's history.