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Incyte’s Mixed Trial Results and Strong Financial Position Lead to Hold Rating

Incyte’s Mixed Trial Results and Strong Financial Position Lead to Hold Rating

JMP Securities analyst Reni Benjamin has reiterated their neutral stance on INCY stock, giving a Hold rating yesterday.

Reni Benjamin has given his Hold rating due to a combination of factors related to Incyte’s recent clinical trial outcomes and financial position. The results from the TRuE-PN1 and TRuE-PN2 Phase 3 trials for Opzelura, aimed at treating prurigo nodularis, showed mixed outcomes. While TRuE-PN1 successfully met its primary and secondary endpoints, TRuE-PN2 did not achieve a statistically significant difference in its primary endpoint, largely due to a high placebo response rate.
Despite the challenges faced in the TRuE-PN2 trial, the safety profile of Opzelura remained consistent, and no new safety concerns were identified. Additionally, Incyte’s solid cash position of $2.2 billion supports the view that the stock is fairly valued at its current level. Investors are also looking forward to the potential positive data from the upcoming povorcitinib Phase 3 trial in hidradenitis suppurativa, which could influence future valuations.

According to TipRanks, Benjamin is an analyst with an average return of -15.0% and a 29.15% success rate. Benjamin covers the Healthcare sector, focusing on stocks such as Blueprint Medicines, Incyte, and BeiGene.

In another report released yesterday, Stifel Nicolaus also maintained a Hold rating on the stock with a $77.00 price target.

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Questions or Comments about the article? Write to editor@tipranks.com