INCY – Market expectations are for Uniform ROA compression, but management is confident about efficacy, their dermatological cream, and patient starts

• Incyte Corporation (INCY:USA) currently trades near recent averages relative to UAFRS-based (Uniform) earnings, with a 16.7x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about drug efficacy, their dermatological cream, and patient starts
• Specifically, management is confident in their ability to improve INCB00928’s (ALK2) efficacy and that they will have a partnership in Asia and the rest of the world for their dermatological cream. Furthermore, they are confident that broad access to FGFR testing led to rapid patient adoption and that they saw a partial rebound in new patient starts in Q3