UPDATE: Canaccord Genuity Reiterates Buy Rating, Raises PT on Incyte Corporation Following Phase 2 RECAP Data Release

In a report published Wednesday, Canaccord Genuity analyst Salveen Richter reiterated a Buy rating on

, and raised the price target from $31.00 to $38.00. In the report, Canaccord Genuity noted, “This morning, INCY released data from the Phase 2 RECAP trial of Jakafi + capecitabine in pancreatic cancer, indicating nice evidence of efficacy versus placebo (HR = 0.79, p = 0.12) – particularly in a pre-specified subgroup (identity not disclosed) representing 50% of the randomized population (HR = 0.47, p = 0.005). We spoke to management, who characterized the data as ‘very encouraging' and noted they want to move to Phase 3 as rapidly as possible. While we look to further details on the Phase 3 design (we expect enrollment to be limited to the subgroup) and the Phase 2 data at a medical meeting (possibly ASCO GI, Jan 16-18, San Francisco), we are encouraged by this data and model for peak U.S./E.U. sales in pancreatic cancer of $514M in 2023 ($385M to INCY). We look to the next key catalysts of 110 (JAK1) P1/2 data in psoriasis at EADV (Oct. 2-6, Istanbul), RA at ACR (Oct. 26-30, San Diego) and MF at ASH (Dec. 7-10, New Orleans) and Jakafi P2b in PV in Q1/14 (sNDA in 2014), which we expect to be positive. We are raising our PT to $38 from $31 on inclusion of Jakafi in pancreatic cancer to our model.” Incyte Corporation closed on Tuesday at $33.00.