Incyte stock rating upgraded by Stifel on promising blood disorder drug

Stifel raised its rating on Incyte (NASDAQ:INCY) from Hold to Buy on Monday, while significantly increasing its price target to $107.00 from $75.00 following promising clinical trial results for the company’s experimental blood disorder treatment. According to InvestingPro data, Incyte maintains a strong financial position with more cash than debt on its balance sheet and demonstrates solid financial health with an overall "GOOD" rating.

The upgrade comes after Incyte presented preliminary data for its INCA033989 drug in essential thrombocythemia patients at the European Hematology Association meeting over the weekend. Stifel characterized the results as a "best-case scenario," noting the drug demonstrated rapid and sustained clinical responses in normalizing platelet counts and reducing variant allele frequency. The company’s strong market position is reflected in its $13.1 billion market capitalization and robust revenue growth of 17% over the last twelve months.

Most impressively, according to Stifel, the drug showed evidence of disease modification and restoration of normal blood cell production by selectively reducing mutated CALR stem cells and megakaryocytes, with effectiveness covering both Type-1 and Type-2 mutations.

Stifel added approximately $4.7 billion in peak sales for INCA033989 to its financial model based on what it called "conservative" assumptions regarding market penetration, pricing, and treatment duration in both essential thrombocythemia and myelofibrosis.

The firm acknowledged the upgrade requires looking past revenue challenges posed by Jakafi’s loss of exclusivity at the end of 2028, but believes INCA033989 provides a source of enthusiasm for Incyte’s future prospects with a higher probability of success and return on investment than previous pipeline candidates. InvestingPro analysis reveals that net income is expected to grow this year, with analysts maintaining a positive outlook. For deeper insights into Incyte’s financial health and growth prospects, including 10+ additional ProTips, check out the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Incyte Corporation announced that its stockholders approved amendments to its stock incentive and employee stock purchase plans. These amendments include an increase in available shares and an extension of the termination date for the stock incentive plan. Additionally, Ernst & Young LLP was ratified as the independent registered public accounting firm for the fiscal year 2025. Specialised Therapeutics expanded its agreement with Incyte Biosciences to include two additional oncology medicines for distribution in Australia, New Zealand, and Singapore. This includes axatilimab and retifanlimab, which are already approved in the U.S. for specific conditions.

Analysts at UBS maintained a neutral rating on Incyte, noting the focus on the mCALR program and the need for further discussions with the FDA. Stifel analysts also maintained a Hold rating on Incyte stock, highlighting concerns about safety and tolerability in its drug pipeline. Meanwhile, TD Cowen reiterated a Buy rating, citing promising early data from a study involving mCALR in essential thrombocythemia. The analysts emphasized improvements in platelet counts and potential indicators of disease modification. These developments reflect ongoing interest and activity surrounding Incyte’s drug development and corporate governance strategies.

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