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Investing.com -- Shares of Incyte Corporation (NASDAQ:INCY) fell 14% after the biopharmaceutical company announced topline results from two Phase 3 clinical trials of povorcitinib in patients with Hidradenitis Suppurativa (HS), despite reporting statistically significant results for primary endpoints in both studies.
The results showed that a higher proportion of patients treated with povorcitinib achieved a ≥50% reduction in abscess and inflammatory nodule count compared to placebo. The favorable safety profile and the lack of new safety concerns were also highlighted. Incyte plans to use these data to support regulatory submissions for the treatment of HS worldwide.
However, the market’s response was negative, with RBC analyst Brian Abrahams commenting on the lower-than-anticipated delta in the HiSCR50 response rates for both dosage levels tested. Although the drug demonstrated statistical significance and potential as a later-line treatment option, especially for patients previously exposed to biologics, the sales estimates may be adjusted due to the perceived modest efficacy and existing safety concerns. "We expect modest weakness today and remain neutral on shares," said Abrahams.
The STOP-HS1 and STOP-HS2 studies met their primary endpoint at Week 12, with both 45 mg and 75 mg doses of povorcitinib. The studies also observed rapid onset of response and significant reduction in skin pain. Incyte’s Chief Medical (TASE:BLWV) Officer, Steven Stein, M.D., emphasized the need for new effective therapies for HS, which povorcitinib could potentially address.
Despite the positive outcomes reported from the STOP-HS clinical trial program, investors seem to have anticipated more robust results, leading to today’s decline in Incyte’s stock price.
Hidradenitis Suppurativa is a chronic and painful skin condition that affects a significant number of patients, and current treatments are limited. Povorcitinib, with its JAK1 inhibiting mechanism, represents a new approach to treating this condition, and further details on secondary endpoints will be sought to fully assess its potential.
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