Incyte Corporation (INCY) and partner, Eli Lilly and Company (LLY), announced encouraging results from the phase III RA-BEACON study (n=527) on baricitinib. Incyte’s shares were up 2.2% on the news.
The study evaluated baricitinib in patients suffering from moderately-to-severely active rheumatoid arthritis (RA) having previously failed one or more tumor necrosis factor (TNF) inhibitors and who were on stable doses of conventional disease-modifying anti-rheumatic drug (cDMARD) therapy. The company expects to present detail data from the study in 2015.
Lilly and Incyte are expecting results from additional phase III studies in 2015 on baricitinib in RA patients including those who have inadequately responded to conventional DMARDs and those with earlier stage disease. Moreover, the companies are evaluating the safety and efficacy of the candidate in an extensive phase III program in people suffering from RA (n>3000).
Incyte and Eli Lilly are also developing baricitinib for the treatment of psoriasis and diabetic nephropathy in phase II studies.
Our Take
We are encouraged by the positive results from the RA-BEACON study. The successful development of its pipeline candidates is crucial for Incyte which is primarily dependent on Jakafi. However, competition is stiff in the RA market given the presence of treatments like AbbVie Inc.’s (ABBV) Humira among others.
Jakafi is approved for the treatment of patients suffering from intermediate or high-risk myelofibrosis (MF), including primary MF, post-polycythemia vera MF and post-essential thrombocythemia MF.
Incyte currently carries a Zacks Rank #2 (Buy). A better-ranked stock in the health care sector is Biogen Idec Inc. (BIIB) carrying a Zacks Rank #1 (Strong Buy).
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