Incyte: Diversifying Beyond Jakafi With a High-Value Late-Stage Pipeline and Disciplined Growth Strategy

TD Cowen analyst Marc Frahm has maintained their bullish stance on INCY stock, giving a Buy rating on January 6.

Marc Frahm has given his Buy rating due to a combination of factors tied to Incyte’s transition beyond its reliance on Jakafi. He highlights management’s detailed plan to evolve into a broader hematology/oncology and inflammation & immunology company as Jakafi approaches loss of exclusivity. Central to this strategy is the ex-Jakafi portfolio — including Opzelura, Niktimvo, Monjuvi, and Zynyz — which is already growing rapidly and is projected to nearly triple by 2030 through continued uptake, label expansions, and additional approvals such as Jakafi XR and povorcitinib.

Frahm also underscores the value of Incyte’s late-stage pipeline, which is anchored by seven high-priority clinical programs with an aggregate revenue potential exceeding $10 billion. He notes that management believes only a subset of these programs needs to succeed to fully offset future Jakafi revenue erosion. Importantly, this growth is expected to be achieved with disciplined expense management, as only modest increases in R&D and commercial spending are planned and will be partially counterbalanced by reductions in SG&A. The combination of a robust, diversified growth roadmap and controlled operating leverage supports his higher price target and Buy recommendation.

According to TipRanks, Frahm is a 5-star analyst with an average return of 21.7% and a 53.70% success rate. Frahm covers the Healthcare sector, focusing on stocks such as Incyte, Kymera Therapeutics, and Cullinan Management.

In another report released on January 6, Barclays also maintained a Buy rating on the stock with a $115.00 price target.