"Danger Will Robinson!" - Intra-Cellular Therapies Stock Soars While Key Clinical Data Not Presented to Shareholders Looks Highly Disappointing

th , 2015 by Little Bear Investments LLC Since January 1 st , 2011 the biotech market has had an epic run. The IBB, an ETF that most believe is an excellent proxy for the industry, has run from 93 to 365. That’s an almost 400% rise in less than 5 years. We at Little Bear have ridden the coattails of numerous small and micro- cap biotech stocks whose products have literally gone from scribblings on a chalkboard to saving lives. There is no doubt that much of the gains have been well-deserved. But amidst the fervor in the industry, where start-ups have gone from family funding to publically traded billion-dollar market-caps, there exists a few companies whose management has taken advantage of the speculative buying to raise large sums of cash for dubious endeavors. We believe that in the race to find the next BioMarin or Vertex Pharmaceuticals, investors have overlooked significant red flags. In our opinion, there’s no more egregious biotech investment where investors are ignoring all the warning signs than Intra-Cellular Therapies, Inc. (“ITCI”) and its lead compound ITI-007, originally billed as a sleep-aid but currently under development to treat schizophrenia. We’ve found negative data being hidden from investors, a drug sold by a savvy big-pharma to ITCI for a pittance, questionable trial metrics and pharmacodynamic properties for the lead compound that call into question whether or not this drug will ever find widespread adoption if it even works at all. Read on for the story behind Intra-Cellular and the numerous red flags that not a single Wall Street firm covering the stock took the time to warn its’ clients of…