Why Intra-Cellular Therapies, Inc. (ITCI) Dominated Last Week’s Rally

We recently compiled a list of the These 10 Firms Dominated Last Week’s Rally. In this article, we are going to take a look at where Intra-Cellular Therapies, Inc. (NASDAQ:ITCI) stands against the other stocks that dominated last week’s rally.

Last week saw a strong trading finish with Wall Street’s main indices all settling in the green territory ahead of President-elect Donald Trump’s return to the White House.

Week-on-week, the Dow eked out a 3.81-percent gain, the S&P rallied 3.79 percent, while the Nasdaq increased by 3.84 percent.

Last week, 10 companies from diverse sectors outpaced their peers. Let’s take a closer look at which publicly-listed firms led the charge and what fueled their impressive performance.

For this week’s list of the 10 biggest advancers, we focused exclusively on companies with a market capitalization of at least $2 billion and a minimum trading volume of $5 million.

A scientist in a lab coat working with petri dishes containing biopharmaceutical drugs.

Intra-Cellular Therapies, Inc. (NASDAQ:ITCI)

Shares of Intra-Cellular Therapies, Inc. (NASDAQ:ITCI) rallied by 33.02 percent week-on-week to close at $126.2 versus the $94.87 registered the week prior as investors snapped up its shares after news on Monday that Johnson & Johnson is set to acquire the neurological drugmaker for $14.6 billion.

On Monday, January 13, shares of Intra-Cellular Therapies (NASDAQ:ITCI) surged 34 percent alone versus Friday’s stock price, indicating a bullish sentiment among investors.

Johnson & Johnson’s acquisition of the company marks the latest in its string of acquisitions in a bid to drive growth beyond 2025, amid cut-throat competition with other drugmakers for its psoriasis drug Stelara.

With the latest deal, Johnson & Johnson will gain access to Intra-Cellular’s oral drug Caplyta, which was approved to treat schizophrenia and depressive episodes associated with bipolar disorder. The treatment brought in $481.3 million in sales in the first nine months of 2024.

Overall ITCI ranks 1st on our list of the firms that dominated last week’s rally. While we acknowledge the potential of ITCI as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ITCI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.