Citi maintains buy rating for Incyte stock amid promising trial data

Published 03/06/2025, 18:48
Citi maintains buy rating for Incyte stock amid promising trial data

On Tuesday, Citi analysts reaffirmed their Buy rating for Incyte stock (NASDAQ: NASDAQ:INCY), maintaining a price target of $88.00. The decision follows Incyte’s announcement of proof-of-concept data for its mCALR inhibitor, INCA33989, which will be presented at the European Hematology Association (EHA) conference in Milan next week. According to InvestingPro data, analyst targets range from $52 to $96, with the stock currently trading at $67.23. The company appears slightly undervalued based on InvestingPro’s Fair Value analysis.

In an open-label Phase 1 trial, 41 high-risk, treatment-resistant essential thrombocythemia (ET) patients with mutated CALR were administered doses ranging from 24mg to 2500mg over a median exposure period of 20 weeks. Safety evaluations showed that 81% of participants experienced adverse events, though most were mild, with no dose reductions or dose-limiting toxicities reported. The company’s strong financial position, with more cash than debt and a healthy current ratio of 2.04, provides robust support for its clinical development programs.

The trial’s efficacy results were promising, with a best overall response rate of 79%. Notably, reductions in mutant CALR variant allele frequency (VAF) were observed in 88% of patients, indicating the drug’s effectiveness on its intended target.

Citi analysts expressed optimism about the data, viewing it as convincing proof-of-concept for the novel mCALR mechanism. They also noted potential investor interest in upcoming data from the myelofibrosis (MF) cohorts of the trial, where Incyte’s Jakafi currently leads the market.

In other recent news, Incyte has received FDA approval for Zynyz, a PD-1 inhibitor, for the treatment of advanced squamous cell carcinoma of the anal canal. This approval, based on clinical trials showing significant improvements in disease progression and survival rates, provides a new option for patients with limited previous treatments. Additionally, Incyte presented promising data on its monoclonal antibody INCA033989 for essential thrombocythemia at the European Hematology Association congress. Despite these developments, BMO Capital reiterated an Underperform rating for Incyte, citing concerns over future growth strategies and the delayed launch of the mCALR antibody until at least 2028. UBS analysts maintained a Neutral rating, expressing caution about the potential of Incyte’s drug developments, including povorcitinib and mCALR. The analysts highlighted safety concerns and uncertainty about the advancement of these programs to registrational studies. These developments reflect ongoing efforts and challenges in Incyte’s research and development pipeline.

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