Incyte Faces Increased Competition From Emerging JAK Inhibitors, RBC Capital Lowers Price Target

Shares of Incyte Corporation INCY recovered last week, after having been under pressure on setbacks to its LIMBER Program.

A proprietary physician survey indicates the rising appetite for novel JAK inhibitors (which could compete with Jakafi) could be higher than earlier anticipated and affect its medium-term growth, according to RBC Capital Markets.

The Incyte Analyst: Brian Abrahams downgraded the rating for Incyte from Outperform to Sector Perform, while reducing the price target from $81 to $79.

The Incyte Thesis: Setbacks in LIMBER and the recent competitor advancement underline “the need for better execution of life-cycle strategies to enable optimal revenue sustainment beyond the Jakafi patent cliff,” Abrahams said in the downgrade note.

Check out other analyst stock ratings.

“Optimism around Opzelura already appears to be baked into numbers based on our extrapolation of KOL feedback,” the analyst wrote.

Incyte’s 2023 sales guidance also indicates that “competitive dynamics could start to more meaningfully impact Jakafi’s trajectory,” Abrahams stated. The stock is trading around the mid-$70s and could remain range-bound in the near term, he added.

INCY Price Action: Shares of Incyte were down 3.04% to $73.22 at the time of publication Monday.

Now Read: Tesla Unleashes New Blitz In EV Price Battle, Bezos' Megayacht Update, And Bitcoin Surge On The Horizon: 5 Key Stories You May Have Missed From The Weekend 

Photo: Shutterstock