On Monday, Goldman Sachs (NYSE:GS) reiterated a Neutral rating on Incyte (NASDAQ:INCY) Corporation (NASDAQ:INCY) stock with a price target of $60.00. The firm highlighted Incyte's presentation at the European Society for Medical Oncology (ESMO) meeting, which included initial Phase 1 data for INCB123667, a CDK2 inhibitor, in advanced solid tumors.
The data showed a roughly 30% overall response rate in platinum-resistant ovarian cancer, which is considered promising compared to typical chemotherapy response rates of about 15%.
Incyte also presented Phase 3 results for Zynyz (retifanlimab) combined with chemotherapy in first-line treatment of squamous cell carcinoma of the anal canal. The combination demonstrated a median progression-free survival benefit of approximately two months over standard-of-care chemotherapy. Incyte is expected to file a supplemental Biologics License Application (sBLA) for this combination by the end of 2024. Zynyz is already approved for the treatment of Merkel cell carcinoma.
The company has plans to initiate a pivotal monotherapy study for the CDK2 inhibitor program targeting Cyclin E1 positive ovarian cancer in 2025, with data anticipated in the second half of 2026 or 2027. This will depend on whether an accelerated approval pathway is available, as discussions with the FDA are ongoing.
Furthermore, a Phase 3 study in combination with Avastin for first-line maintenance treatment in Cyclin E1 positive ovarian cancer patients is slated to begin, with results expected in the first half of 2029.
Goldman Sachs noted that these updates are encouraging and will continue to monitor Incyte's portfolio, especially with the upcoming loss of exclusivity for Jakafi in the EU and US in 2027/2028. The firm is also looking forward to updates from Incyte's inflammation and autoimmunity pipeline, including Phase 3 data for povorcitinib in hidradenitis suppurativa and early data for assets acquired from Escient, which are expected in the first quarter of 2025.
In other recent news, Incyte Corporation's total revenues for the second quarter of 2024 hit $1.4 billion, a 9% increase from the previous year, largely driven by key products, Jakafi and Opzelura. This financial growth coincides with the recent FDA approval of its drug axatilimab, now branded as Niktimvo, for use in third-line chronic graft-versus-host disease.
Incyte also reported positive outcomes from its Phase 3 inMIND trial, evaluating the effectiveness of the drug tafasitamab in patients with relapsed or refractory follicular lymphoma. The company plans to submit a supplemental Biologics License Application for tafasitamab by the end of the year.
RBC Capital Markets raised Incyte's price target from $66 to $67, while BMO Capital Markets maintained its underperform rating on Incyte's shares. These evaluations followed the FDA approval of Incyte's drug axatilimab.
Meanwhile, JMP Securities maintained a Market Perform rating on Incyte, expressing the view that the stock is currently fairly valued. These are the recent developments in the company's trajectory.
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