INCY – Market expectations are for Uniform ROA compression, but management is excited about drug prescriptions and confident about in-person meetings and patient demand

September 10, 2021

  • Incyte Corporation (INCY:USA) currently trades well below corporate averages relative to UAFRS-based (Uniform) earnings, with a 7.6x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, but management is excited about dermatologist prescription trends and confident about in-person oncologist meetings and increasing patient demand.
  • Specifically, management generated an excitement marker when saying dermatologists overwhelmingly prescribe for drugs like RUX cream and Eucrisa. They are also confident European product launches happen in sequence by country, the positive trend in representative access to in-person meetings with oncologists will continue, and that patient demand is increasing across all three of Jakafi’s indications. Furthermore, management is confident the Phase III vitiligo program had achieved its primary and key secondary endpoints and that the suboptimal study in patients who’ve had at least three months of ruxolitinib with either an inadequate spleen or symptom response is ongoing and enrolling.