Piper Jaffray Recommends Incyte (INCY)

Piper Jaffray's report published today recommends Incyte

, citing future royalties on recent news as a driver. Piper Jaffray has an Overweight rating and $32 price target on the company. In the report, Piper Jaffray stated, "We recommend buying INCY shares following detailed Phase IIb data presentation of baricitinib (formerly INCB28050) at the 2012 EULAR meeting. We believe shares do not fully reflect the $1-2bn peak sales opportunity for baricitinib in RA alone (not in our or Street estimates), given comparable efficacy to Pfizer's tofacitinib, but with a QD dosing advantage and potentially cleaner safety profile." Shares of Incyte were trading at $22.81 at the time of posting, down 1.70% from Thursday's market close.