Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Goldman Sachs Downgrades Incyte Amid Concerns Over Jakafi Studies, Competitiveness

Published 21/11/2023, 20:05
© Reuters.  Goldman Sachs Downgrades Incyte Amid Concerns Over Jakafi Studies, Competitiveness
INCY
-

Benzinga - by Vandana Singh, Benzinga Editor.

Goldman Sachs downgraded Incyte Corp (NASDAQ: INCY), citing continued uncertainty around Jakafi (Ruxolitinib) lifecycle management ahead of the mid-27/late-28 EU/US losses-of-exclusivity (LOEs).

Goldman Sachs seeks clarity on once-daily Jakafi that received an FDA complete response letter for certain types of myelofibrosis, polycythemia vera, and graft-versus-host disease.

Discussions with the FDA are ongoing, and INCY has noted that the most likely scenario would require a modified formulation and potentially a two-year delay with potential approval in 2026/2027.

The analyst downgraded the stock to Neutral from Buy, with the price target reduced from $98 to $65.

The analyst also awaits proof-of-concept data from Jakafi combination studies but notes the need for further dose optimization, noting competitive considerations. INCY intends to disclose the path to Phase 3 regarding this asset in 2024.

Goldman maintains that INCY isn't perceived as a probable candidate for merger and acquisition due to Jakafi meeting the criteria for a small biotech drug exemption.

Consequently, Jakafi wouldn't qualify as a small biotech drug anymore if acquired, potentially making it less attractive as a revenue source for major biopharma companies aiming to address loss-of-exclusivities (LOEs) in the latter half of the 2030 decade.

The focus for Incyte highlighted by the analyst includes M&A and business development, primarily in cancer, immunology, inflammation (now including dermatology), and associated fields. Management is keen on exploring adjacent sectors and considering early-stage assets to drive growth beyond 2025. Incyte has underscored its capacity to conduct transactions, leveraging its significant cash reserves surpassing $3.5 billion and its debt-free status.

Price Action: INCY shares are down 2.14% at $53.54 on the last check Tuesday.

Latest Ratings for INCY

DateFirmActionFromTo
Feb 2022SVB LeerinkDowngradesMarket PerformUnderperform
Feb 2022Morgan StanleyMaintainsEqual-Weight
Jan 2022RBC CapitalUpgradesSector PerformOutperform
View More Analyst Ratings for INCY

View the Latest Analyst Ratings

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.