Buy Rating for Incyte’s Povorcitinib Despite Mixed Trial Results, Highlighting Potential in Biologic-Experienced Subgroups

William Blair analyst Matt Phipps has maintained their bullish stance on INCY stock, giving a Buy rating on March 10.

Matt Phipps’s rating is based on the potential commercial opportunity for Incyte’s JAK1 inhibitor, povorcitinib, despite the Phase III trial results not meeting Phase II expectations. The trials showed a statistically significant outcome, which supports regulatory submissions, and there is a noted rapid onset of response, including skin pain reduction.
While the placebo-adjusted response rates were lower than anticipated, Phipps sees potential in subgroups such as biologic-experienced patients where povorcitinib might demonstrate higher efficacy. This subgroup could represent a primary market opportunity, which contributes to the Buy rating despite the initial market reaction to the trial results.

Phipps covers the Healthcare sector, focusing on stocks such as Amgen, Incyte, and Kezar Life Sciences. According to TipRanks, Phipps has an average return of -10.2% and a 36.22% success rate on recommended stocks.

In another report released on March 10, Citi also maintained a Buy rating on the stock with a $88.00 price target.