Incyte upgraded to Market Perform at SVB after ruxolitinib XR CRL, Zynz approval

SVB Securities upgraded Incyte to Market Perform from Underperform with a price target of $61, up from $60, following several regulatory updates. The XR version of ruxolitinib was "not fundamentally part of our valuation," but it "is a key factor" in Incyte’s lifecycle management program for Jakafi, which loses IP protection in December 2028, the analyst tells investors. With the ruxolitinib XR CRL pressuring shares and the accelerated approval for Zynz in Merkel cell carcinoma "adding fundamental value to our valuation," the firm prefers to step to the sidelines until the next steps for the LIMBER program are spelled out and "the true commercial trajectory" for Opzelura in atopic derm and vitiligo become apparent, SVB tells investors.