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On Tuesday, BMO Capital analysts reaffirmed their Underperform rating for Incyte (NASDAQ:INCY) stock (currently trading at $67.10), maintaining a price target of $52.00. The $13 billion market cap company maintains strong financial health according to InvestingPro analysis, with more cash than debt on its balance sheet. This decision follows the presentation of new data from a trial of INCA033989, an anti-mutant calreticulin (mutCALR)-directed monoclonal antibody, during an oral session.
The data, presented in a late-breaking abstract at the European Hematology Association (EHA), indicated some interesting activity of the mCALR antibody in patients with essential thrombocythemia. Safety concerns were raised due to Grade 3 or higher lipase increases, although no clinical cases of pancreatitis were observed. The market’s reaction reflects broader analyst sentiment, with consensus targets ranging from $52 to $96, according to InvestingPro data.
While the early efficacy results are promising in this smaller patient group, the analysts expressed caution regarding Incyte’s broader growth strategy. The launch of the mCALR antibody is not anticipated until at least 2028.
BMO Capital remains cautious on Incyte’s strategy beyond the loss of exclusivity for Jakafi, with the current data only in Phase 1. The analysts noted that the company’s approach for future growth is still uncertain.
The reaffirmation of the Underperform rating reflects the analyst’s view on the potential challenges Incyte may face in expanding its portfolio and market presence.
In other recent news, Incyte has announced promising trial data for its monoclonal antibody INCA033989, demonstrating safety and efficacy in treating essential thrombocythemia at the European Hematology Association congress. The company highlighted this novel therapy’s potential to transform treatment for myeloproliferative neoplasms. Additionally, Incyte received FDA approval for Zynyz, a PD-1 inhibitor, for advanced squamous cell carcinoma of the anal canal, marking a significant advancement for patients with limited treatment options. Incyte also settled a royalty dispute with Novartis (SIX:NOVN), agreeing to pay $280 million to resolve litigation over royalties for JAKAFI sales in the U.S. Furthermore, UBS analysts maintained a neutral rating on Incyte stock, expressing caution about the potential of the company’s drug developments. The analysts noted concerns about the safety of JAK inhibitors and uncertainty regarding the progression of the mCALR program. These developments reflect ongoing challenges and advancements within Incyte’s portfolio, with significant implications for its product pipeline and financial obligations.
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