Oppenheimer Says Incyte Will Outperform (INCY)

Oppenheimer & Co. has an Outperform rating and a $22 price target on shares of Incyte Corporation INCY. In a note sent to clients, Oppenheimer writes, "On 12/20, INCY announced strong top-line ph.III COMFORT-1 results for INCB18424 in myelofibrosis (MF). '424's spleen reduction benefit was highly clinically meaningful, with 42% of '424 patients achieving a 35% reduction in spleen volume vs. 1% on placebo (p<0.0001). Although side effect information was limited, INCY reported '424's safety profile, including thrombocytopenia and anemia, was consistent with favorable ph.II results, with a low dropout rate. The ph.III results reinforce our belief that '424 will become the dominant MF therapy years ahead of potential competition. Although positive COMFORT-1 results were generally anticipated, we expect meaningful additional '11 upside in INCY on COMFORT-2 results (early 1Q11), '424's MF approval (4Q11), and growing awareness of '424's potential in polycythemia vera (PV)." Shares of INCY are jumping in pre-market trading, gaining $1.32 to $16.50, a gain of 8.7%.