Rising sales backed by a recent FDA approval are boosting this Top Pick biotech’s shares.
Incyte (INCY)
from Wong’s BioTech Stock Report
Incyte’s (INCY) Jakafi was launched in myelofibrosis (MF), as a treatment for a rare bone marrow cancer during 2011. Third quarter 2014 sales were up 63% year/year and annualize to $391 million.
Incyte estimated a $500 million goal for MF which appears to be too low for the existing myelofibrosis patients (~10,000). Recently, Jakafi was approved for the use in polycythemia vera (PV) patients, a blood cancer that either cannot tolerate or have failed to respond to hydroxyurea. Incyte estimates that there are 100,000 PV patients in the US, approximately 25% of which will now be eligible for Jakafi.
Incyte plans to provide revised estimates of both the MF and PV market opportunities in 2015.The MF and possibly PV peak sales guidance could be increased due to a potentially larger population and long duration of therapy. Hence, the strong momentum in Jakafi sales as a potential driver of upside, complementing pipeline development and the potential turn to sustained profitability in 2015.
Jakafi’s MF and PV opportunities provide a growing base business that funds Incyte’s extensive pipeline of and success in any of these programs would likely open potential lucrative markets. Therefore, Incyte’s shares are expected to outperform with a target price of $81.
Nadine Wong, Wong’s BioTech Stock Report, www.biotechnav.com, 503-659-1355, December 24, 2014