Research

INCY – Market expectations are for Uniform ROA compression, but management is confident about Jakafi, their momentum, and hematological products

  • Incyte Corporation (INCY:USA) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with a 13.1x Uniform P/E, implying bearish expectations for the firm. However, management is confident about Jakafi, momentum, and their hematological products
  • Specifically, management is confident about their momentum entering H2, and they are confident they have generated $20mn in revenue under their collaboration agreement with Innovent. Furthermore, they are confident hematological products will be a driver of both revenue and margin and that the size of the team required to independently operate their derm business in the U.S. is modest. Additionally, management is confident Jakafi achieved positive results in its trial and that the GRAVITAS-301 study will achieve its endpoints in six months.