INCY – Market expectations are for Uniform ROA compression, but management is confident about Monjuvi, Jakafi sales, and their LIMBER program

July 13, 2021

  • Incyte Corporation (INCY:USA) ccurrently trades well below corporate averages relative to UAFRS-based (Uniform) earnings, with an 8.7x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, but management is confident about Monjuvi combinations, Jakafi sales growth, and their LIMBER program.
  • Specifically, management is confident they are initiating a small trial to test their BET inhibitor and ruxolitinib combination safety and that the LIMBER program may pursue fixed-dose combinations for once-daily products. In addition, they are confident updated Monjuvi and LEN combination follow-up results continues to improve and that higher patient demand drove Jakafi net product sales growth.