INCY – Market expectations are for Uniform ROA compression, but management is confident about their revenue, pipeline, and TRuE-AD studies

• Incyte Corporation (INCY:USA) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with a 12.7x Uniform P/E, implying bearish expectations for the firm. However, management is confident about their revenue, their drug development pipeline, and their TRuE-AD studies
  
  

• Specifically, management is confident that they expect $65mn in Jakavi royalties from Novartis and $100mn-$105mn in full year ICLUSIG revenue. In addition, they are confident that they are looking to create a flatter Jakafi profile with the same strengths but with less anemia and that RUX plus PEM inhibition is an important development program for the firm. Finally, they are also confident that they expect the same vehicle response rate in their TRuE-AD1 and TRuE-AD2 studies as shown in their proof-of-concept work