INCY - Incyte is weighed down by SVB downgrade following Q4 earnings release

Incyte Corporation (INCY) has been downgraded to Underperform from Market Perform at SVB Leerink after the release of the company’s Q4 2020 financial results where the top-line rose ~36.3% YoY outperforming the ~12.8% YoY increase in the cost of product sales.The analyst Andrew Berens has lowered the price target to ~$70 from $89 per share implying ~21.8% downside to the previous close, and Incyte is trading ~1.5% lower in premarket hours.Despite Jakafi and Pemazyre sales coming ahead of the consensus, the firm notes that the newly launched Monjuvi fell short of the Street forecast.Citing the higher-than-expected operating expenses, Berens predict the trend to continue given the ‘infrastructure needs in the EU, Monjuvi development, and additional pipeline asset expenditures.’As for the Jakafi patent cliff due 2027, Incyte’s pipeline is unlikely to offset the impact writes the analyst, citing the company’s heavy reliance on Jakafi and the unwieldy pipeline despite rising R&D expenses.In December, Incyte

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Incyte is weighed down by SVB downgrade following Q4 earnings release