QUOTE AND NEWS
newratings.com  Jul 7  Comment 
WASHINGTON (dpa-AFX) - Incyte Corp. (INCY) announced that it reached a multi-year research support and collaboration agreement with Vanderbilt-Ingram Cancer Center or VICC at Vanderbilt University Medical Center or VUMC, whereby Incyte will...
Market Intelligence Center  Jul 6  Comment 
MarketIntelligenceCenter.com's patented trade-picking algorithms have identified an attractive covered-call trade on Incyte (INCY). Look at the Sep. '15 $105.00 covered call for a net debit in the $98.68 area. This trade has a duration of 74...
Forbes  Jul 2  Comment 
In the latest look at stocks ordered by largest market capitalization, Russell 3000 component Incyte Corporation (NASD: INCY) was identified as having a larger market cap than the smaller end of the S&P 500, for example Hess Corp (NYSE: HES),...
Market Intelligence Center  Jun 29  Comment 
For a hedged play on Incyte (INCY), MarketIntelligenceCenter.com’s option-trade picking algorithms recommend the Sep. '15 $100.00 covered call for a net debit in the $94.45 area. That is also the break-even stock price for the covered call. This...
Market Intelligence Center  Jun 22  Comment 
The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center  are highlighting two trades on Incyte (INCY) today after it closed at $107.77 on Friday. For more conservative investors, look...
newratings.com  Jun 19  Comment 
WASHINGTON (dpa-AFX) - Incyte Corp. (INCY) announced that it has created two new units; a U.S. country organization that will lead commercial and medical affairs in the U.S.; and a Global Product Strategy and Business Development & Licensing...
Market Intelligence Center  Jun 4  Comment 
Incyte (INCY) is a good candidate for a covered call at the $105.00 level. The Sep. '15 call at that price should fetch a credit of about $11.40, which means the entire position has a net debit of about $97.58. This trade has 7.41% downside...
Benzinga  May 29  Comment 
Bank of America initiated coverage on Incyte Corporation (NASDAQ: INCY) with a Buy rating. The target price for Incyte is set to $126. Incyte shares have gained 118.47 percent over the past 52 weeks, while the S&P 500 index has surged 10.46...
Benzinga  May 28  Comment 
Eli Lilly and Company (NYSE: LLY) and Incyte Corporation (Nasdaq: INCY) will host a webcast on June 11 to discuss data from the first two pivotal Phase III studies of baricitinib in rheumatoid arthritis. Data from these two trials, RA-BEACON and...




 

Incyte Corporation (NYSE: INCY) is a Wilmington, DE-based drug discovery and development company with a focus on oral compounds to treat HIV, inflammation, cancer, and diabetes. The company has transformed from a genomic-based information supplier to a fully integrated drug discovery and development organization. The company's lead internal compound, Ruxolitinib, has completed phase III clinical trials for the treatment of myelofibrosis and submitted an NDA application to the FDA in June of 2011.

The ability of Incyte to push its lead compounds through regulatory approval and to maintain the cash required to do so will impact Incyte Corporation's long-term success.

Business Growth[1]

In 2010, total revenues for Incyte were $170 million, reflecting milestone payments received from drug development partners. These milestone payments include $50 million from Novartis AG (NVS) for the initiation of the RESPONSE clincal trial, $49 million from Eli Lilly and Company (LLY) for two early stage drugs, and $67 million in amortized payments made earlier by the two partner companies.

Net loss for 2010 was $31.8 million, down from a 2009 net loss of $212 million.

Pipeline[2][3]

  • Ruxolitinib: Incyte's flagship product, Ruxolitinib is currently in two Phase III studies, COMFORT and RESPONSE to study its use as a treatment for myelofibrosis and polycythemia vera, two rare diseases without current approved treatments. The COMFORT trial has been completed and Incyte submitted an NDA application to the FDA in June of 2011.[4] The RESPONSE trial began in the fourth quarter of 2010. Ruxolitinib is also involved in Phase I and II trials to treat leukemia and other blood-based diseases.[5]
  • Sheddase Inhibitors: Incyte is developing INCB7839 to treat Her-2 positive breast cancer. Phase II trials have been completed and Incyte will decide whether to progress to Phase III trials.

Trends and Forces

Incyte Needs to Obtain Regulatory Approval in Order to Earn Significant Revenue

To date, all of Incyte's revenue has been earned from milestone payments paid by pharmaceutical partners for the development of its flagship product, Ruxolitinib. In order to make the full transition from a development-stage company to a fully commercial pharmaceutical company, Incyte needs to obtain regulatory approval for its drugs. Incyte submitted an NDA application for the use of Ruxolitinib to treat myelofibrosis in 2011 and will receive a response from the FDA in late 2012 or early 2013. The outcome of that response will profoundly impact Incyte's valuation.[6]

Cash on Hand will Impact Incyte's Ability to Maintain Operations

In the absence of organic revenue, Incyte is reliant on its cash on hand to fund ongoing operations. As of the end of 2010, Incyte had $418 million in cash.[7] In 2011, Incyte expects to cash use to range between $185 and $200 million.[8] Incyte's ability to maintain positive cash as it develops its lead products will impact its ability to bring these drugs to market and develop a revenue stream of its own.

Competition

Ruxolitinib belongs to a class of drugs called Jak inhibitors. The following companies are developing drugs within this class:

  • YM BioSciences (YMI): Developing a Jak inhibitor for myelofibrosis that could be a direct competitor to Ruxolitinib. YM BioSciences' drug is in Phase II clinical trials.[9]
  • Sanofi-Aventis SA (SNY): In 2010, Sanofi-Aventis purchased TargeGen, whose flagship drug is a Jak inhibitor being developed to treat myelofibrosis.[10]

References

  1. Incyte Reports 2010 Financial Results; Provides 2011 Key Objectives And Financial Guidance
  2. INCY 2011 10K
  3. Incyte Product Pipeline
  4. Incyte Submits NDA For Ruxolitinib For Rare Blood Cancer
  5. Incyte Corporation's CEO Discusses Q1 2011 Results- Earnings Call Transcript
  6. Incyte Corporation's CEO Discusses Q1 2011 Results- Earnings Call Transcript
  7. INCY 2011 10K
  8. Incyte Reports 2010 Financial Results; Provides 2011 Key Objectives And Financial Guidance
  9. Incyte and YM Biosciences in Race to Market Strongest JAK Inhibitor
  10. On a spree, Sanofi scoops up TargeGen in $635M Deal
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