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Valens Research

INCY - Embedded Expectations Analysis - 2020 09 18

Incyte Corporation (INCY:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with an 18.7x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management may have concerns about their financial position, safety and efficacy of ruxolitinib, and clinical development studies

Specifically, management may lack confidence in their ability to improve their financial position, finish their pivotal atopic dermatitis studies at the end of 2020, and file their supplemental New Drug Application (sNDA) for ruxolitinib next year. Furthermore, they may have concerns about the impact of coronavirus on their clinical development studies, the combination mix for their B-cell lymphoma trial, and the safety and efficacy of ruxolitinib. They may also be downplaying the competition from generics already in their markets
Underlying
INCYTE CORP

Incyte is a biopharmaceutical company focused on the discovery, development and commercialization of therapeutics. JAKAFI (ruxolitinib) has been approved for the treatment of patients with intermediate or high-risk myelofibrosis, for the treatment of patients with polycythemia vera, and for the treatment of steroid-refractory acute graft-versus-host disease in adult and pediatric patients 12 years and older. The company has also obtained a license to develop and commercialize ICLUSIG (ponatinib) in Europe and other select countries. In the European Union, ICLUSIG is approved for the treatment of adult patients with chronic phase, accelerated phase or blast phase chronic myeloid leukemia.

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Valens Research
Valens Research

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