William Blair Starts Incyte (INCY) at Outperform

William Blair initiates coverage on Incyte (NASDAQ: INCY) with a Outperform rating.

Analyst Dr. Katherine Xu comments "We expect Jakaϐi to peak at $5.4 billion globally over the next 10 years, continuing to serve as a strong foundation for growth and expansion. Near-term growth will be significantly augmented by baricitinib to be launched in 2017 by partner Eli Lilly globally in rheumatoid arthritis, and we estimate peak sales at $2.5 billion, for which Incyte receives royalties at 20%-29% rates. Medium-term growth beyond 2020 could come from epacadostat, a first-in-class IDO inhibitor that could become a cornerstone of future combination regimens in major solid tumor indications. We estimate $9.7 billion peak global sales potential of epacadostat with probabilities ranging from 70% to 80%. Incyte also boasts one of the broadest oncology pipelines in the industry, encompassing 18 approved and clinical stage assets with 14 distinct mechanisms of action; candidates encompass targeted therapies and immuno-oncology (IO) agents, through internal discovery and aggressive licensing and alliances. On the commercial side, Incyte expanded into Europe by acquiring Ariad’s EU operations in 2016 and plans to expand into Asia in the near term, building up to be a truly integrated global biopharma company."

For an analyst ratings summary and ratings history on Incyte click here. For more ratings news on Incyte click here.

Shares of Incyte closed at $148.52 yesterday.

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