Truist Securities has downgraded Incyte Corporation (NASDAQ:INCY), noting Jakafi’s (ruxolitinib) patent loss approaching in 2028.

Jakafi is Incyte’s top-selling drug. It is indicated for polycythemia vera in adults, intermediate or high-risk myelofibrosis in adults, and steroid-refractory acute graft versus host disease in adult and pediatric patients.

In second quarter 2024, the drug generated sales of $705.9 million, +3% year-over-year, driven by a 9% increase in paid demand.

The analyst downgraded the stock from Buy to Hold, with a price target of $74, down from $83.

Also Read: Incyte Seeks Expanded FDA Approval For Lymphoma Drug After Releasing Promising Topline Data From Late-Stage Study.

Additionally, Incyte faces intense competition, particularly in larger markets where it aims to establish a foothold, such as I&I and solid tumors.

Truist emphasizes the significance of the late-stage results for Povorcitinib in hidradenitis suppurativa (HS), expected in the first half of 2025, as a key factor likely to influence stock performance over the next 12 months.

Additionally, the analyst draws attention to the earlier-stage results expected in the second half of 2024 for Zilurgisertib in myelofibrosis. However, due to Novartis AG’s (NYSE:NVS) delays and the challenges, combined with the early development stage of Incyte’s programs, Truist is adopting a more cautious stance.

Price Action: INCY stock is down 0.93% at $65.81 at last check Wednesday.

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