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WILMINGTON, Del. & BURLINGAME, Calif. - Incyte (NASDAQ:INCY), a global biopharmaceutical company, has entered a strategic collaboration with Genesis Therapeutics, Inc., a pioneer in artificial intelligence (AI) for drug discovery. The partnership aims to utilize Genesis’ AI platform, GEMS, for the research and development of novel small molecule therapeutics.
Under the agreement, Genesis will receive an upfront payment of $30 million and could earn up to $295 million in milestone payments per target, plus tiered royalties on sales of any products that reach the market. The initial collaboration will focus on two targets selected by Incyte, with an option for Incyte to nominate an additional target. With revenue growth of nearly 15% in the last twelve months and a healthy current ratio of 1.97, Incyte appears well-positioned to fund this strategic investment.
Dr. Pablo J. Cagnoni, President and Head of Research and Development at Incyte, highlighted the partnership as a means to accelerate the discovery of small molecules for significant targets in Incyte’s pipeline. Evan Feinberg, Ph.D., Founder and CEO of Genesis, expressed enthusiasm for combining their GEMS AI platform with Incyte’s expertise in drug development to advance treatments for severe diseases.
Genesis’ AI platform, GEMS, integrates advanced AI methods to generate and optimize molecules for complex drug targets. The company has raised over $300 million in funding and is building a pipeline of therapeutics.
Incyte, headquartered in Wilmington, Delaware, is dedicated to solving unmet medical needs through proprietary therapeutics, with a strong product pipeline in Oncology and Inflammation & Autoimmunity.
The collaboration’s potential products are subject to various risks, including unsuccessful clinical trials, regulatory challenges, and market competition. Incyte’s forward-looking statements are based on current expectations and are subject to change. Despite these risks, the company maintains a favorable Altman Z-Score of 5.1, indicating strong financial stability. Discover more about Incyte’s risk profile and growth potential in the comprehensive Pro Research Report, available exclusively on InvestingPro.
This article is based on a press release statement.
In other recent news, Incyte Corporation reported fourth quarter earnings with revenue surpassing expectations at $1.18 billion, compared to the forecasted $1.14 billion, although earnings per share fell short of estimates. The company’s key products, Jakafi and Opzelura, showed significant growth, with Jakafi’s net product revenues increasing 11% year-over-year to $773 million and Opzelura’s revenues rising 48% to $162 million. For the full year 2024, Incyte’s total revenues reached $4.24 billion, marking a 15% increase from the previous year. Looking ahead, Incyte projects Jakafi’s 2025 net product revenues to be between $2.925 billion and $2.975 billion, and Opzelura’s revenues to range from $630 million to $670 million.
In terms of analyst actions, TD Cowen raised Incyte’s stock price target to $88, maintaining a Buy rating, citing strong performances from Jakafi and Opzelura, along with promising data from ongoing trials. Conversely, RBC Capital Markets cut their price target to $68, maintaining a Sector Perform rating, due to concerns about the expiration of Jakafi’s exclusivity and Opzelura’s guidance. Citi also adjusted their price target to $88, holding a Buy rating, while highlighting the strategic importance of Jakafi XR and upcoming pivotal studies. Stifel raised their price target to $77, keeping a Hold rating, and noted investor concerns about upcoming trial data for povorcitinib. These developments underscore the varied outlooks from analysts regarding Incyte’s future performance.
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