To shareholders who were stupefied with an instigated selloff of Incyte’s (INCY) stock today, we say do not get panicky. Nothing is wrong with Incyte, no bad news was announced with any of the firm’s 12 ongoing clinical trials or with its approved drug Jakafi, which demonstrated progressive growth since it was launched. So, a clever correct move now would be taking advantage and accumulate INCY.
INCY plunged 22% following updating the results from its ongoing phase 1 / 2 study of its drug epacadosta in combination with Merck’s drug Keytruda. The updating occurred at the Society for Immunotherapy of Cancer (SITC) conference today.
In the results announced at the SITC conference, 53 percent of patients with melanoma and 25 percent of those with renal cell carcinoma had an overall response, which was less than the 57 percent and 40 percent rates that the company had reported in a smaller patient population on Nov. 3.
The small decrease in safety and efficacy is still great news and still offering proof of concept, which was what the firm’s needed to offer. The combination treatment will now proceed without problems into phase 3 trial. The only results that matter now are those that will come from the phase 3 trials.
Most fair analysts expressed optimism about the combination drug.
A FEW NOTES ABOUT INCYTE’S GOOD NEWS
– Less Risk: Incyte has 12 molecules in clinical development in our portfolio, and apart from the recently in-licensed PD-1 antagonist, all have been discovered in Incyte’s laboratories.
– Incyte and Merck announced plans to advance epacadostat + pembrolizumab into Phase 3 trial for the first line treatment of advanced metastatic melanoma is great news. It marks the great transformation of Incyte, as it would be Incyte’s first compound Incyte intends to possess global commercialization rights.
Melanoma is just the beginning for epacadostat. The firm continue to build clinical databases in different tumor histologies with Merck and with other collaborators. And if the data warrant it, the firms will move as quickly as possible into additional pivotal studies for other cancers.
– Incyte’s drug baricitinib in Phase 3 trial demonstrates its superiority over Humira in controlling the signs and symptoms of rheumatoid arthritis. This is big news with near-term effect on the firm’s finances with revenues that could be huge.
The results of two Phase 3 rheumatoid arthritis studies evaluating baricitinib head to head against two of the most widely-used RA treatments. In RA-BEGIN,baricitinib monotherapy showed efficacy superior to methotrexate monotherapy in treatment-naïve patients. And in the second study, RA-BEAM, on a background of methotrexate baricitinib showed superior efficacy to Humira, the market-leading biologic for patients with inadequate responses to conventional DMARDs.
– Jakafi continues to show strong growth, both from both indications, i.e., myelofibrosis (MF) and polycythemia vera (PV).
To understand the magnitude of Incyte’s accomplishments and evolution, we are in a process of writing an assay that describes the details of the firm’s moves and decisions.
What happened yesterday to Incyte’s stock demonstrates how investors forget what they heard a couple of days before and get hysterical over a new announcement, without analyzing the contents of the news and without measuring its impact, if any, on the firm’s future. Those who rushed to sell the stock forgot the value of Incyte’s 12 clinical trials and the outstanding results from baricitinib,demonstrating superiority over the best existent gold standard of care treatments. The Q3 results were impressive news and promising more trials with proprietary drugs used alone and in combinations is great news.
Some investors, however, demonstrated understanding Incyte’s value. Those investors have already accumulated the stock following its odd dipping. The stock recuperated over 20% of its losses before the end of the trading hours.
Incyte is a great rising firm and it is in the commencement of a transition into a full-fledged prosperous biotechnology leader.
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