Piper Jaffray Reiterates Overweight Rating on Incyte Following 3-Year Survival Data Presentation

In a report published Monday, Piper Jaffray analyst M. Ian Somaiya reiterated an Overweight rating and $27.00 price target on Incyte INCY.

In the report, Piper Jaffray noted, “We reiterate our Overweight rating and $27 price target following the presentation of 3-year survival data from the COMFORT-2 study at the European Hematology Association (EHA) meeting, which confirmed an overall survival benefit for Jakavi (EU name for Jakafi). We believe the data could ultimately support a label update, with a potential claim for survival. The 3-year OS analysis was pre-specified and further differentiates Jakafi from Sanofi's JAK2 inhibitor ‘503 and Gilead's momelotinib (CYT387). In addition, we believe an exploratory analysis of bone marrow morphology finally demonstrated that Jakafi is not a supportive care drug, but has direct impact on disease progression. This analysis combined with 3-year survival data should drive upside to 2H13 estimates. Furthermore, we believe Incyte's underappreciated pipeline could provide upside surprise, particularly ‘110, the wholly owned JAK1 inhibitor, which will have Phase IIa data (2H13) in RA, myelofibrosis, and psoriasis at appropriate medical meetings.”

Incyte closed on Friday at $21.17.