Zacks Investment Research downgraded shares of Incyte Corporation (INCY) from NEUTRAL to UNDERPERFORM on October 09, 2014, with a target price of $44.00.
Incyte is dependent on a single product, Jakafi, for growth. Though Incyte has a broad pipeline, most of the candidates are in mid-stage development. Moreover, the target population for myelofibrosis (Jakafi's approved indication) is small. Also, Jakafi recently failed to meet the primary objectives in a late stage study in the polycythemia vera (PV) indication. The product is currently under review in the U.S. for the PV indication. Any setback in the company's label expansion efforts for Jakafi would weigh heavily on the stock. Consequently, we downgrade the stock to Underperform. We believe that there is significant scope for stock price depreciation from current levels and advice investors to get rid of it.
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