Benzinga | Jul 20, 2021 03:28PM EDT

Benchmark Upgrades Incyte After Stock Selloff

The recent downturn in Incyte Corporation's (NASDAQ:INCY) share price offers an entry opportunity, with the FDA likely to approve ruxolitinib in chronic GVHD indication in September 2021, according to Benchmark.

The Incyte Analyst: Aydin Huseynov upgraded the rating for Incyte to Buy, while maintaining the price target at $89.

The Incyte Thesis: The company published chronic GVHD data for ruxolitinib, which showed the candidate "performed better than each of the individual components in the best available arm," Huseynov said in the upgrade note.

FDA approval for ruxolitinib in chronic GVHD indication "should add to Jakafi sales in three other indications," the analyst noted.

"We also expect rux cream to be approved (70% PoS) by the FDA in atopic dermatitis indication in September 2021," he added.

"While INCY has had a series of misses with retifanlimab, FDA's extensions of review periods for ruxolitinib and rux cream (that led to the selloff, as we assume), we still expect INCY's main product, Jakafi/Jakavi to perform strong both in the US and Europe," Huseynov further wrote.

INCY Price Action: Shares of Incyte had risen by 1.63% to $78.83 at the time of publication Tuesday.