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Jefferies raised its price target on Incyte (NASDAQ:INCY) to $82.00 from $76.00 on Monday, while maintaining a Buy rating on the biopharmaceutical company’s stock. Currently trading at $67.75 with a market capitalization of $13.1 billion, InvestingPro analysis suggests the stock is currently undervalued.
The revision follows promising early-stage clinical data for Incyte’s mCALR-targeting monoclonal antibody presented at the European Hematology Association meeting. The Phase 1 data in essential thrombocythemia (ET) patients demonstrated clear benefits in disease biomarker reduction and platelet normalization. The company’s strong financial health, with a current ratio of 2.04 and minimal debt-to-equity ratio of 0.01, positions it well to advance its clinical programs.
Jefferies cited three key factors driving interest in the drug candidate: its sound mechanism of action, the approaching loss of exclusivity for Incyte’s flagship drug Jakafi in 2028, and the large market opportunity represented by patients with myelofibrosis (MF) and essential thrombocythemia.
The investment firm noted that while highly anticipated data for myelofibrosis patients was not presented at the conference, the strong biological activity observed in essential thrombocythemia patients should provide insights into the drug’s potential effectiveness in MF.
Jefferies incorporated the mCALR-targeting therapy into its valuation model with probability of success estimates of 30% in essential thrombocythemia and 10% in myelofibrosis, contributing to the higher price target. With revenue growth of 17.1% over the last twelve months and positive earnings forecasts, InvestingPro offers 12 additional key insights about Incyte’s financial outlook in its comprehensive Pro Research Report.
In other recent news, Incyte Corporation has reported several significant developments. Stifel upgraded its rating of Incyte from Hold to Buy, raising the price target to $107.00 due to promising clinical trial results for its experimental blood disorder treatment, INCA033989. The drug showed rapid and sustained clinical responses, which Stifel described as a "best-case scenario," indicating a positive outlook for its potential market impact. Additionally, Incyte has expanded its partnership with Specialised Therapeutics to include two more oncology medicines, axatilimab and retifanlimab, for distribution in Australia, New Zealand, and Singapore.
Incyte’s stockholders have also approved amendments to the company’s stock incentive and employee stock purchase plans, increasing available shares and extending the termination date for the stock incentive plan. UBS maintained its neutral rating on Incyte, citing the need for further consultation with the FDA regarding the mCALR program. Meanwhile, Stifel reaffirmed its Hold rating on Incyte, noting promising but cautious data from presentations at the American Society of Clinical Oncology. These developments reflect ongoing efforts by Incyte to expand its pipeline and address challenges in its drug development programs.
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