Positive Outlook for Incyte Amid Mixed TRuE-PN Results and Anticipated Phase III Catalyst

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

Matt Phipps has given his Buy rating due to a combination of factors related to Incyte’s ongoing developments and future prospects. Despite the mixed results from the TRuE-PN studies for Opzelura in prurigo nodularis, Phipps maintains a positive outlook on Incyte’s valuation. The results from the TRuE-PN1 study were promising, achieving all primary and key secondary endpoints, although TRuE-PN2 did not meet its primary endpoint. However, the overall analysis of both studies was positive, suggesting potential for future regulatory approval discussions.
Furthermore, Phipps emphasizes that the valuation impact of these mixed results is minimal, as the market potential for Opzelura in prurigo nodularis is relatively small compared to other indications like atopic dermatitis and vitiligo. More importantly, the upcoming Phase III readout for povorcitinib in hidradenitis suppurativa is anticipated to be a significant catalyst for Incyte. Phipps believes that the ongoing studies for povorcitinib, which target a more severe patient population, are less likely to be affected by the high placebo response seen in the TRuE-PN studies, thereby supporting a positive outlook for Incyte’s future growth.

Phipps covers the Healthcare sector, focusing on stocks such as Kezar Life Sciences, Keros Therapeutics, and Jasper Therapeutics. According to TipRanks, Phipps has an average return of -10.3% and a 36.40% success rate on recommended stocks.

In another report released today, Bank of America Securities also maintained a Buy rating on the stock with a $86.00 price target.