Incyte Corporation

Incyte has started appreciating with its financial results being just around the corner. In the last quarter, the company’s revenues rose 29% and it managed an all-around beat. With an increase in new patient starts across all 3 indications, Jakafi’s net revenues increased 13% to $598 million. As Monjuvi and Minjuvi progressed into the market in Europe and Japan, the contribution from their other hematology and oncology medications grew. The company made significant progress by introducing Opzelura to treat atopic dermatitis, where it has secured the third PBM GPO contract. This is a crucial step in gaining widespread formulary access as well as one that will hasten the rise of Opzelura’s net sales. Additionally, they are collaborating with advocacy groups where Opzelura has generated great interest among vitiligo patients. These patients will be able to receive this treatment for repigmentation for the first time, and the largest randomized clinical research conducted in this population has demonstrated its safety and efficacy. The management also intends to acquire privately held Villaris Therapeutics and its experimental vitiligo treatment, auremolimab, for up to $1.4 billion to extend its dermatology pipeline. We remain bullish on Incyte and maintain our ‘Hold’ rating.