Incyte’s Growth Prospects Hindered by Jakafi’s Exclusivity Loss and Strategic Limitations

BMO Capital analyst Evan Seigerman maintained a Sell rating on Incyte (INCY – Research Report) yesterday and set a price target of $52.00.

Evan Seigerman has given his Sell rating due to a combination of factors impacting Incyte’s future growth prospects. Despite Jakafi’s impressive sales performance exceeding expectations, the long-term outlook remains clouded by the looming loss of exclusivity in 2029. While Niktimvo has shown promising early growth, its long-term revenue potential is seen as incremental and insufficient to offset Jakafi’s future challenges.
Furthermore, although povorcitinib has shown positive Phase 2 results in CSU, the indication is considered smaller and less impactful compared to others. The company’s capital allocation strategy also limits its business development capabilities, forcing reliance on existing assets. Overall, Seigerman’s analysis suggests that Incyte’s current growth trajectory and strategic positioning do not sufficiently mitigate the risks associated with Jakafi’s slowing growth and upcoming loss of exclusivity.

According to TipRanks, Seigerman is a 4-star analyst with an average return of 3.6% and a 44.17% success rate. Seigerman covers the Healthcare sector, focusing on stocks such as Novo Nordisk, Bristol-Myers Squibb, and Vertex Pharmaceuticals.