INCY - CTI BioPharma initiated at outperform at Cowen on potential for Vonjo for myelofibrosis

• Cowen has initiated CTI Biopharma ( NASDAQ: CTIC ) with an outperform rating citing the growth potential of Vonjo (pacritinib), which was approved in February for thrombocytopenic myelofibrosis.
• Shares are up 14% in Thursday afternoon trading.
• The firm has a $10 price target (~67% upside based on Wednesday's close).
• Analyst Boris Peaker said that one of the advantages of Vonjo over current treatments is that as a JAK2/IRAK1 inhibitor, it appears to be missing JAK inhibitor treatment-emergent thrombocytopenia and is also effective no matter the baseline platelet count.
• He added that Vonjo is approved for patients with very low platelet counts and the National Comprehensive Cancer Network guidelines call for the therapy's use in a second-line setting, both developments that support broader use.
• Incyte's ( INCY ) Jakafi (ruxolitinib) is a competitor to Vonjo, though it is approved for patients with a higher platelet count compared to Vonjo.
• Peaker is estimating $1B in peak sales, though the amount could be higher due to off-label use.
• Vonjo can achieve a 55% market share of U.S. patients by 2027 , according to Seeking Alpha contributor Nizar Assanie.

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