Oppenheimer Likes Incyte, Sees 40% Upside (INCY)

Oppenheimer is reiterating its Outperform rating on Incyte Corporation

, with a $17 price target 12-18 months out. In a note to clients, Oppenheimer writes, "We are reviewing the competitive landscape in myelofibrosis (

), the lead indication for Incyte's INCB18424, given recent developments: SNY's acquisition of TargeGen, clinical updates on YM Biosciences' CYT387 and S*Bio/ONXX's SB1518, and ph.III initiation for CELG's pomalidomide. While we expect increasing interest in these competitors--particularly with more data expected at ASH--the other JAK-inhibitors may ultimately not all have the same favorable efficacy/safety balance as '424, given their different selectivity profiles. Additionally, '424's likely first-mover advantage should enable meaningful market entrenchment. In light of recent weakness, we would position in INCY ahead of potentially positive 2H10 catalysts: clarity on '424 development in PV, additional RA data for '050 at ACR (November), and most important, ph.III data for '424 in MF (December)." Shares of Incyte Corporation gained 2.27%, a gain of 27 cents to close at $12.14.