Incyte Risk/Reward Balanced - Analyst Blog
We maintain a Hold rating on the shares of Incyte Corp. (INCY), a Wilmington, DE-based drug discovery and development company, primarily in the focus on oral compounds to treat HIV, inflammation, and cancer.
DFC had been the company's key growth driver. The discontinuation of DFC was a big setback for the company. However, we are pleased to see the progress in the company's other product candidates, especially the JAK inhibitor program for RA.
At the current share price, we see the risk/reward relatively balanced for investors in Incyte. We were encouraged to hear about the recent agreement with Pfizer for the development of the company's CCR2 program. We believe this agreement validates the company's development efforts.
Based on peer comparisons with other smaller genomic/pure discovery-based biotechnology companies, we believe that INCY shares are fairly valued at current levels. Our $5.00 target price corresponds to a market capitalization of $485 million which we think is fair to Incyte.
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