TD Cowen maintains Buy rating on Incyte stock, sees promising data

On Wednesday, TD Cowen analysts reiterated their Buy rating and maintained an $86.00 price target on Incyte stock (NASDAQ: NASDAQ:INCY), representing significant upside from the current price of $67.11. According to InvestingPro data, analyst targets range from $52 to $96, with the stock currently showing strong financial health metrics. The analysts highlighted promising early data from a study involving mCALR in essential thrombocythemia (ET), noting significant improvements in platelet counts and potential indicators of disease modification.

The initial results showed rapid and robust improvements in platelet counts, meeting the threshold for hematologic response in most cases. The analysts pointed out that these outcomes align with reports in online forums about significant reductions in platelet counts shortly after starting ’989 therapy. They also observed a clear decrease in variant allele burden, suggesting possible early signs of disease modification. This development is particularly significant for Incyte, which InvestingPro analysis shows has maintained strong revenue growth of 17.13% over the last twelve months and holds more cash than debt on its balance sheet.

The analysts expressed anticipation for further data at the European Hematology Association (EHA) meeting, which may provide insights into the durability of patient responses, dose response, and safety at the relevant doses. A more comprehensive dataset with longer follow-up will enable better comparisons with other treatments, such as bomedemstat, an LSD1 inhibitor.

In bomedemstat’s Phase II study for ET, patients who responded inadequately or were intolerant to at least one standard of care therapy showed a 77% response rate at Week 24, with 72% achieving a durable reduction in platelets for 12 weeks or more. Although most patients in the ’989 Phase I study had not reached 24 weeks of treatment, the reported best overall response of 79% (complete response plus partial response) appears potentially competitive if maintained.

The abstract also indicated a dose-response relationship for the depth and durability of platelet reductions. The analysts believe that the ≥400mg dose cohorts are more likely to achieve competitive 24-week response rates and durable responses lasting 12 weeks or more. With a market capitalization of nearly $13 billion and a solid current ratio of 2.04, Incyte appears well-positioned to advance its clinical programs. For deeper insights into Incyte’s financial health and growth prospects, including 13 additional ProTips and comprehensive valuation metrics, check out the detailed Pro Research Report available on InvestingPro.

In other recent news, Incyte has unveiled promising trial data for its monoclonal antibody, INCA033989, aimed at treating essential thrombocythemia (ET). The data, presented at the European Hematology Association (EHA) congress, highlighted the safety and efficacy of the therapy, which targets mutations in calreticulin (mutCALR). Citi analysts maintained a Buy rating for Incyte, citing the positive proof-of-concept data for the mCALR inhibitor, INCA33989, and a promising overall response rate of 79% in a Phase 1 trial. Conversely, BMO Capital reiterated an Underperform rating, expressing concerns over safety issues and uncertainty in Incyte’s growth strategy beyond Jakafi’s exclusivity. JPMorgan analysts upheld a Neutral rating, noting the competitive landscape and the need for further data maturation. Meanwhile, Incyte’s presentations at the EHA congress, including new findings on INCA033989, have been accepted, reflecting confidence in the company’s research efforts. These developments are part of Incyte’s broader strategy to advance its hematology/oncology portfolio. The company plans to host an analyst and investor event to discuss the mutCALR data further.

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