INCY

Incyte Corp

Healthcare


Presented:03/02/2016
Price:$73.60
Cap:$14.23B
Current Price:$66.29
Cap:$12.77B

Presented

Date03/02/2016
Price$73.60
Market Cap$14.23B
Ent Value$20.88B
P/E Ratio7360x
Book Value$0.92
Div Yield0%
Shares O/S193.37M
Ave Daily Vol2,397,108
Short Int3.38%

Current

Price$66.29
Market Cap$12.77B
Incyte Corp. is a biopharmaceutical company. It focuses on the discovery, development and commercialization of proprietary small molecule drugs to treat serious unmet medical needs. The company's product, Jakafi (ruxolitinib), a JAK1 and JAK2 inhibitor, is currently approved in the U.S. for the treatment of intermediate or high-risk myelofibrosis and is in development as a potential treatment for other cancers. Incyte was founded by Roy A. Whitfield in April 1991 and is headquartered in Wilmington, DE.

Publicly traded companies mentioned herein: AstraZeneca PLC (AZN), Bristol-Myers Squibb Company (BMY), Eli Lilly And Company (LLY), Incyte Corporation (INCY), Merck & Co Inc (MRK), NewLink Genetics Corp (NLNK), Novartis AG (NVS), Pfizer Inc (PFE), Roche Holding AG (ROG VX / RHHBY)

Highlights

Incyte (INCY) was “one of the most beloved” small molecule pharma companies in the industry before shares had fallen from the $120s in late 2015 to the current $70s. Three main assets make up the value of the company today: Jakafi (ruxolitinib), baricitinib, and its IDO1 Epacadostat (IDO is indoleamine 2, 3-dioxygenase (IDO1), an immune regulatory enzyme and a pathway that tumors use to hide from the immune system/ T cells). The presenter is short the stock at ~$75 due to his belief that the market is still overvaluing INCY’s IDO1 program and pipeline. Additionally, he does not see the company as a likely acquisition target as some bulls believe because most of INCY’s partners have acquired other IDO assets. If the presenter gives INCY “full credit” for Jakafi and baricitinib he sees the fair value for the base business at roughly $35 per share.

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