MOR - Incyte: The Worst Has Been Avoided

2024-06-16 08:12:27 ET

Summary

• In recent months, Incyte's management has continued to delight investors by accelerating the pace of development of its anti-inflammatory treatments.
• On May 30, 2024, Incyte announced the completion of its acquisition of Escient Pharmaceuticals for $750 million.
• Sales of Opzelura, one of the company's gems, totaled $85.7 million in the first quarter of 2024, up 51.4% year-on-year.
• Furthermore, Incyte's cash and short-term investments amount to about 29% of its market capitalization.
• Consequently, I'm initiating coverage of Incyte with a "buy" rating.

Incyte (INCY) is one of the leaders in the global Janus kinase inhibitors market.

Investment thesis

Over the past month and a half, the company's share price has increased by more than 20%, reflecting grown optimism among institutional and retail investors following its $750 million acquisition of Escient Pharmaceuticals and the announcement in mid-May that its Board of Directors had authorized a $2 billion share buyback plan....

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