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On Monday, TD Cowen analysts maintained a Buy rating on Incyte Corporation (NASDAQ:INCY) with a price target of $88.00. The biotechnology company, currently valued at $13.8 billion, has demonstrated strong financial health according to InvestingPro analysis, with robust revenue growth of nearly 15% over the last twelve months and a solid balance sheet showing more cash than debt. The endorsement comes after Incyte showcased its Phase 3 trial results for ruxolitinib cream, branded as Opzelura, at the American Academy of Dermatology (AAD) meeting. The TRuE-PN1 trial, which evaluated the cream’s efficacy in treating prurigo nodularis (PN), achieved its primary and all key secondary endpoints.
The positive outcome from the TRuE-PN1 trial demonstrated treatment effects comparable to systemic medications, with significant improvements in itch and skin lesions. Specifically, at week 12, Opzelura showed a 45% improvement in itch (WI-NRS4) compared to 21% for the control group, and a 16% improvement in the Investigator’s Global Assessment (IGA) for skin lesions versus 4% for the control.
Despite the encouraging results from TRuE-PN1, the subsequent TRuE-PN2 trial did not meet its primary endpoint, although it exhibited positive trends. TD Cowen analysts believe that the TRuE-PN1 results alone could support off-label use of Opzelura in PN cases, even though FDA approval based on these mixed trial outcomes remains uncertain. This development comes as InvestingPro data shows Incyte’s net income is expected to grow this year, with three analysts recently revising their earnings estimates upward.
The early onset of Opzelura’s efficacy was also highlighted, with a significant response observed as early as day seven of the trial. The analysts noted the lack of comparative data in the topical treatment landscape for PN but emphasized that the impact on itch relief in the TRuE-PN1 trial aligns with results from systemic treatments like Dupixent.
Incyte’s presentation at the AAD meeting has reinforced the analysts’ positive outlook on the stock, as they continue to recommend a Buy rating with an $88.00 price target. The company’s progress in developing treatments for dermatological conditions remains a point of interest for investors and the medical community alike. According to InvestingPro analysis, Incyte appears undervalued at current levels, with 12 additional exclusive ProTips and a comprehensive Pro Research Report available for subscribers seeking deeper insights into this promising biotech company’s fundamentals and growth prospects.
In other recent news, Incyte has announced a strategic collaboration with Genesis Therapeutics to advance the discovery of new small molecule drugs using Genesis’ AI platform, GEMS. This partnership involves an upfront payment of $30 million to Genesis, with potential milestone payments up to $295 million per target. Meanwhile, several analyst firms have adjusted their price targets for Incyte. TD Cowen raised its target to $88, maintaining a Buy rating, citing strong performances from Incyte’s products Opzelura and Jakafi. Conversely, RBC Capital Markets reduced its target to $68, retaining a Sector Perform rating due to concerns about future product pipeline expectations and increased research and development spending. Citi also lowered its target to $88 while keeping a Buy rating, highlighting the importance of upcoming pivotal studies and drug launches. Stifel increased its target to $77, maintaining a Hold rating, with cautious optimism about future clinical trial outcomes and product approvals. These developments reflect a mix of optimism and caution among analysts regarding Incyte’s future prospects.
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