Incyte Reports Strong Q3 Results, Analyst Upgrades Stock and Raises Revenue Forecast for Jakafi

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Incyte Reports Strong Q3 Results, Analyst Upgrades Stock and Raises Revenue Forecast for Jakafi

Incyte Reports Strong Q3 Results, Analyst Upgrades Stock

Incyte Corporation (INCY) reported strong third-quarter results on Tuesday, exceeding analyst expectations. Revenue grew 24% year-over-year to $1.14 billion, surpassing the consensus estimate of $1.08 billion. This growth was primarily driven by the success of Jakafi (ruxolitinib), a drug used to treat myelofibrosis and polycythemia vera. Jakafi's net product revenue increased by 16% year-over-year to $741.18 million, fueled by a 10% increase in total demand.

In response to these positive results, Incyte raised its 2024 revenue forecast for Jakafi to $2.74 billion-$2.77 billion, up from the previous guidance of $2.71 billion-$2.75 billion. This optimistic outlook reflects the continued strong demand for Jakafi and the potential for further market share gains.

Analysts at BofA Securities responded positively to Incyte's performance, upgrading the company's stock from Neutral to Buy with a price target of $90, up from $68. They cited the strong demand for Jakafi, the potential for future pipeline successes, and the anticipated growth of Opzelura, a topical treatment for atopic dermatitis.

While the loss of exclusivity for Jakafi in 2028 remains a concern, analysts believe that Incyte's pipeline has the potential to offset this impact. Several pivotal readouts are expected in 2025, which could lead to new revenue streams and further growth for the company.

Overall, Incyte's strong Q3 results and positive analyst outlook suggest a bright future for the company. The continued success of Jakafi, the potential for pipeline breakthroughs, and the anticipated growth of Opzelura position Incyte for continued success in the years to come.