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Incyte (INCY) Gains 19.6% in Three Months: Here's Why
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Shares of Incyte (INCY - Free Report) were on the upward trajectory in the past three months. The stock has risen 19.6% in this time frame compared with the industry’s growth of 8.9%.
Last week, Incyte announced that it granted restricted stock unit awards (RSUs), representing an aggregate of 14,577 shares of the company’s common stock, and stock option awards to purchase an aggregate of 18,149 shares of the company’s common stock to 27 new employees. The company’s shares rose following this announcement.
Image Source: Zacks Investment Research
Incyte made a similar announcement last month, wherein it granted RSUs, representing an aggregate of 14,090 shares of its common stock, and stock option awards to purchase an aggregate of 9,238 shares of the common stock to 17 new employees.
INCY’s shares also jumped in May after the company announced a share repurchase authorization of $2.0 billion. Incyte had commenced a modified ‘Dutch Auction’ tender offer to repurchase shares of its common stock for an aggregate price of up to $1.672 billion.
The results of the tender offer were announced last month. Incyte accepted 27.8 million shares of its common stock for purchase at a price of $60.00 per share, for a total cost of approximately $1.672 billion, excluding fees and expenses related to the tender offer. These shares represented approximately 12.4% of the company’s total outstanding shares as of Jun 7, 2024.
INCY had simultaneously entered into a separate stock purchase agreement with the Baker Entities to repurchase up to $328.0 million of its common stock. In total, Incyte planned to repurchase a total of 33.3 million of its common stock through the tender offer and the stock purchase agreement at a price of $60.00 per share. These shares represented approximately 14.8% of the company’s total shares as of Jun 7, 2024.
Investors appreciated the company’s efforts to increase returns for the shareholders.
In May, Incyte acquired Escient Pharmaceuticals, a clinical-stage drug discovery and development company advancing novel small molecule therapeutics for systemic immune and neuro-immune disorders.
The acquisition added EP262 and EP547 to INCY’s portfolio. EP262 is a first-in-class, potent, highly selective, once-daily small molecule antagonist of Mas-related G protein-coupled receptor X2 (MRGPRX2). The candidate is being evaluated to treat multiple mast cell-mediated diseases, including chronic inducible urticaria, chronic spontaneous urticaria and atopic dermatitis. EP547 is a first-in-class oral MRGPRX4 antagonist with the potential to treat cholestatic pruritus and other conditions with severe pruritus.
Incyte is heavily dependent on its lead drug Jakafi for growth, and hence, any effort to diversify the revenue base is positive as Jakafi is slated to lose patent protection toward the end of the decade.
Jakafi, a first-in-class JAK1/JAK2 inhibitor, is approved for the treatment of polycythemia vera (PV) and intermediate or high-risk myelofibrosis (MF), including primary MF, post-PV MF and post-essential thrombocythemia MF. It is also approved for steroid-refractory acute graft versus host disease in adult and pediatric patients aged 12 years or older in the United States.
INCY has a collaboration agreement with the Swiss pharma giant Novartis (NVS - Free Report) for Jakafi. Notably, Jakafi is marketed by Incyte in the United States and by Novartis as Jakavi outside the country.
In February 2024, Incyte entered into an asset purchase agreement with MorphoSys AG. This gave Incyte exclusive global rights for tafasitamab, a humanized Fc-modified CD19-targeting immunotherapy marketed, in the United States (as Monjuvi) and outside the country (as Minjuvi).
While the move to buy back shares boosts returns for shareholders, Incyte needs to revamp its business plans and expand its portfolio to maintain momentum.
Entrada’s loss per share estimate for 2024 has narrowed from 27 cents to 13 cents in the past 60 days. The same for 2025 has narrowed from $3.44 to $3.21 in the past 30 days.
In the past 60 days, estimates for CORT’s 2024 earnings per share have improved from 90 to 95 cents. Shares of CORT have rallied 37.8% in the past three months.
CORT’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 33.7%.
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Incyte (INCY) Gains 19.6% in Three Months: Here's Why
Shares of Incyte (INCY - Free Report) were on the upward trajectory in the past three months. The stock has risen 19.6% in this time frame compared with the industry’s growth of 8.9%.
Last week, Incyte announced that it granted restricted stock unit awards (RSUs), representing an aggregate of 14,577 shares of the company’s common stock, and stock option awards to purchase an aggregate of 18,149 shares of the company’s common stock to 27 new employees. The company’s shares rose following this announcement.
Image Source: Zacks Investment Research
Incyte made a similar announcement last month, wherein it granted RSUs, representing an aggregate of 14,090 shares of its common stock, and stock option awards to purchase an aggregate of 9,238 shares of the common stock to 17 new employees.
INCY’s shares also jumped in May after the company announced a share repurchase authorization of $2.0 billion. Incyte had commenced a modified ‘Dutch Auction’ tender offer to repurchase shares of its common stock for an aggregate price of up to $1.672 billion.
The results of the tender offer were announced last month. Incyte accepted 27.8 million shares of its common stock for purchase at a price of $60.00 per share, for a total cost of approximately $1.672 billion, excluding fees and expenses related to the tender offer. These shares represented approximately 12.4% of the company’s total outstanding shares as of Jun 7, 2024.
INCY had simultaneously entered into a separate stock purchase agreement with the Baker Entities to repurchase up to $328.0 million of its common stock. In total, Incyte planned to repurchase a total of 33.3 million of its common stock through the tender offer and the stock purchase agreement at a price of $60.00 per share. These shares represented approximately 14.8% of the company’s total shares as of Jun 7, 2024.
Investors appreciated the company’s efforts to increase returns for the shareholders.
In May, Incyte acquired Escient Pharmaceuticals, a clinical-stage drug discovery and development company advancing novel small molecule therapeutics for systemic immune and neuro-immune disorders.
The acquisition added EP262 and EP547 to INCY’s portfolio. EP262 is a first-in-class, potent, highly selective, once-daily small molecule antagonist of Mas-related G protein-coupled receptor X2 (MRGPRX2). The candidate is being evaluated to treat multiple mast cell-mediated diseases, including chronic inducible urticaria, chronic spontaneous urticaria and atopic dermatitis. EP547 is a first-in-class oral MRGPRX4 antagonist with the potential to treat cholestatic pruritus and other conditions with severe pruritus.
Incyte is heavily dependent on its lead drug Jakafi for growth, and hence, any effort to diversify the revenue base is positive as Jakafi is slated to lose patent protection toward the end of the decade.
Jakafi, a first-in-class JAK1/JAK2 inhibitor, is approved for the treatment of polycythemia vera (PV) and intermediate or high-risk myelofibrosis (MF), including primary MF, post-PV MF and post-essential thrombocythemia MF. It is also approved for steroid-refractory acute graft versus host disease in adult and pediatric patients aged 12 years or older in the United States.
INCY has a collaboration agreement with the Swiss pharma giant Novartis (NVS - Free Report) for Jakafi. Notably, Jakafi is marketed by Incyte in the United States and by Novartis as Jakavi outside the country.
In February 2024, Incyte entered into an asset purchase agreement with MorphoSys AG. This gave Incyte exclusive global rights for tafasitamab, a humanized Fc-modified CD19-targeting immunotherapy marketed, in the United States (as Monjuvi) and outside the country (as Minjuvi).
While the move to buy back shares boosts returns for shareholders, Incyte needs to revamp its business plans and expand its portfolio to maintain momentum.
Zacks Rank & Stocks to Consider
Incyte currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the healthcare sector are Entrada Therapeutics (TRDA - Free Report) and Corcept Therapeutics (CORT - Free Report) , both carrying a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Entrada’s loss per share estimate for 2024 has narrowed from 27 cents to 13 cents in the past 60 days. The same for 2025 has narrowed from $3.44 to $3.21 in the past 30 days.
In the past 60 days, estimates for CORT’s 2024 earnings per share have improved from 90 to 95 cents. Shares of CORT have rallied 37.8% in the past three months.
CORT’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 33.7%.