Goldman Sachs Reiterates Neutral Rating on Incyte Corporation Stock with Promising Phase 1 Data – Is INCY a Buy?
Goldman Sachs recently reiterated a Neutral rating on Incyte Corporation (NASDAQ: INCY) stock with a price target of $60.00 after the company's presentation at the European Society for Medical Oncology (ESMO) meeting. The presentation included initial Phase 1 data for INCB123667, a CDK2 inhibitor, in advanced solid tumors, showing a 30% overall response rate in platinum-resistant ovarian cancer.
Incyte also presented Phase 3 results for Zynyz (retifanlimab) in combination with chemotherapy for first-line treatment of squamous cell carcinoma of the anal canal. The combination showed a median progression-free survival benefit of approximately two months over standard-of-care chemotherapy, with an expected sBLA filing by the end of 2024.
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 expected in the second half of 2026 or 2027. Additionally, a Phase 3 study in combination with Avastin for first-line maintenance treatment in Cyclin E1 positive ovarian cancer patients is set to begin, with results anticipated in the first half of 2029.
Goldman Sachs highlighted these updates as positive 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.
In other news, Incyte Corporation reported a 9% increase in total revenues for the second quarter of 2024, driven by key products Jakafi and Opzelura. This growth coincides with the recent FDA approval of its drug axatilimab for use in chronic graft-versus-host disease.
RBC Capital Markets raised Incyte's price target to $67, while BMO Capital Markets maintained an underperform rating on the stock. JMP Securities also maintained a Market Perform rating, suggesting that the stock is fairly valued.
In conclusion, Incyte Corporation's recent developments in its pipeline and financial performance show promising signs for potential growth. Investors should keep an eye on upcoming milestones and updates from the company to make informed investment decisions.