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With a market cap of $14.2 billion, Wilmington, Delaware-based Incyte Corporation (INCY) is a biopharmaceutical company specializing in developing therapies for oncology, hematology, and autoimmune diseases. The company's key products include Jakafi for myelofibrosis and polycythemia vera, along with a diverse pipeline of innovative treatments.
Companies valued at $10 billion or more are generally labeled as “large-cap” stocks, and Incyte fits this criterion perfectly. Incyte's uniqueness lies in its specialization in developing breakthrough JAK inhibitors and groundbreaking small-molecule drugs, setting it apart as a leader in precision medicine.
However, the specialty drugmaker is down 7.4% from its 52-week high of $70.36, achieved on Jul. 25. Yet, shares of INCY have risen 5.5% over the past three months, outperforming the broader Nasdaq Composite's ($NASX) 2.2% gains over the same time frame.
However, longer term, INCY is up 3.7% on a YTD basis, lagging behind NASX's 21.2% gains. Moreover, shares of Incyte have gained 9.9% over the past 52 weeks, compared to NASX's 39.2% return over the same time frame.
Despite the relative underperformance, INCY has been trading above its 200-day moving average since June and has mostly stayed above its 50-day moving average since early May despite some fluctuations.
Incyte has underperformed over the past year due to investor concerns about a significant decline in sales from its top-selling drug Jakafi after losing market exclusivity, alongside setbacks from the discontinuation of multiple cancer therapies. Moreover, despite reporting better-than-expected Q2 revenue of $1 billion, the stock fell over 1% on Jul. 30 due to the company's unexpected $1.82 per share loss, driven by acquisition-related expenses, including the $750 million purchase of Escient Pharmaceuticals. Additionally, the market reacted negatively to the company's decision to discontinue the development of five cancer therapies during a strategic review.
In comparison, rival Exelixis, Inc. (EXEL) outperformed INCY. Shares of Exelixis have gained 20.6% over the past 52 weeks and 9.4% on a YTD basis.
Despite INCY’s weak price action over the past year, analysts remain moderately optimistic about its prospects. Among the 21 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and it is currently trading below the mean price target of $72.33.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
