Goldman Sachs Downgrades Incyte Amid Concerns Over Jakafi Studies, Competitiveness
Portfolio Pulse from Vandana Singh
Goldman Sachs downgraded Incyte Corp (NASDAQ:INCY) from Buy to Neutral, reducing the price target from $98 to $65 due to uncertainties around Jakafi's lifecycle management and competitive concerns. The FDA's complete response letter for once-daily Jakafi requires a modified formulation, potentially delaying approval until 2026/2027. Incyte is not seen as a likely M&A target because of Jakafi's small biotech drug exemption, which would not apply if acquired. Incyte is focusing on M&A and business development, with over $3.5 billion in cash reserves and no debt.
November 21, 2023 | 8:05 pm
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NEGATIVE IMPACT
Goldman Sachs downgraded Incyte Corp due to concerns over Jakafi's lifecycle management and competitiveness, with a reduced price target from $98 to $65.
The downgrade by Goldman Sachs, along with the reduction in price target, is likely to negatively impact investor sentiment and the stock price in the short term. The uncertainty regarding the FDA's response and the potential delay in approval until 2026/2027 adds to the negative outlook. Additionally, the perception that Incyte is not a likely M&A target could further dampen investor enthusiasm.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100