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Valued at a market cap of $13.3 billion, Incyte Corporation (INCY) is a biopharmaceutical company that engages in the discovery, development, and commercialization of therapeutics for hematology/oncology and inflammation and autoimmunity areas. The Wilmington, Delaware-based company sells its products to specialty, retail, and hospital pharmacies, distributors, and wholesalers.
Companies valued at over $10 billion are typically classified as “large-cap stocks,” Incyte fits the label perfectly with its market cap exceeding this threshold. The company’s lead drug, Jakafi (ruxolitinib), is approved in the United States for the treatment of patients with polycythemia vera ('PV') who have had an inadequate response to or are intolerant to hydroxyurea and is also approved for the treatment of patients with intermediate or high-risk myelofibrosis (MF).
INCY is currently trading 16.8% below its 52-week high of $83.95, reached on Nov. 8. Shares of this pharmaceutical company have rallied 8.9% over the past three months, outperforming the broader Dow Jones Industrials Average’s ($DOWI) 1.9% gains during the same time frame.
Moreover, over the past six months, shares of INCY are up 10.5%, outpacing DOWI’s 9.6% gains over the same time frame. But, over the past 52 weeks, INCY has gained 11.1%, lagging behind DOWI’s 14.8% returns.
Meanwhile, INCY has been trading below its 50-day moving average since mid-December. However, it has remained above its 200-day moving average since early July.
On Oct. 29, shares of INCY soared 12% after its Q3 earnings release despite delivering mixed results. The company’s adjusted EPS declined 2.7% year-over-year to $1.07 and missed the consensus estimates of $1.12. On the other hand, its revenue of $1.14 billion improved 24% from the year-ago figure and outpaced the Wall Street estimates by 4.6%.
Strong growth in its Jakafi and Opzelura net product revenues led to its top-line beat. This, along with the company’s raised full-year 2024 Jakafi revenue guidance to $2.74 billion - $2.77 billion, might have bolstered investor confidence and contributed to its upward price movement. However, on Nov. 9, after the company revealed setbacks with two drugs acquired in its $750 million buyout of Escient Pharmaceuticals earlier this year, shares of INCY fell 8.3%.
INCY has significantly outperformed its rival, BioMarin Pharmaceutical Inc. (BMRN), which declined 31.1% over the past 52 weeks and 20.9% over the past six months.
Looking at Incyte's recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 24 analysts covering it, and the mean price target of $78.67 suggests a modest 12.6% premium to its current levels.
