Why Incyte's Shares Are Tumbling (Motley Fool, 11-02-2016)
Posted: Sat Feb 13, 2016 11:29 pm
Jakafi's solid tumor program goes belly up.
by George Budwell
What: Shares of Incyte Corporation (NASDAQ:INCY) fell by more than 21% in early morning trading today after the company announced that it is discontinuing the clinical development of Jakafi (ruxolitinib) in solid tumors due to insufficient efficacy.
So what: The Street expected about half of Jakafi's peak sales to eventually come from solid tumors.
Now what: Despite this clinical setback, Jakafi's sales still rose by a healthy 68% in the fourth quarter compared to a year ago, as a treatment for myelofibrosis and polycythemia vera. The concern, though, is that Jakafi could have significant competition in the hematological malignancy arena in the not-so-distant future.
After all, Geron (NASDAQ:GERN) and its partner Johnson & Johnson (NYSE:JNJ) are developing the telomerase inhibitor imetelstat as a disease-modifying treatment for myelofibrosis. In early stage trials, for instance, imetelstat produced both partial and complete responses in a handful of myelofibrosis patients.
Jakafi, on the other hand, mostly lessens the symptoms associated with myelofibrosis, implying that it would probably be at a significant competitive disadvantage if pitted against imetelstat.
link: http://www.fool.com/investing/general/2 ... today.aspx
by George Budwell
What: Shares of Incyte Corporation (NASDAQ:INCY) fell by more than 21% in early morning trading today after the company announced that it is discontinuing the clinical development of Jakafi (ruxolitinib) in solid tumors due to insufficient efficacy.
So what: The Street expected about half of Jakafi's peak sales to eventually come from solid tumors.
Now what: Despite this clinical setback, Jakafi's sales still rose by a healthy 68% in the fourth quarter compared to a year ago, as a treatment for myelofibrosis and polycythemia vera. The concern, though, is that Jakafi could have significant competition in the hematological malignancy arena in the not-so-distant future.
After all, Geron (NASDAQ:GERN) and its partner Johnson & Johnson (NYSE:JNJ) are developing the telomerase inhibitor imetelstat as a disease-modifying treatment for myelofibrosis. In early stage trials, for instance, imetelstat produced both partial and complete responses in a handful of myelofibrosis patients.
Jakafi, on the other hand, mostly lessens the symptoms associated with myelofibrosis, implying that it would probably be at a significant competitive disadvantage if pitted against imetelstat.
link: http://www.fool.com/investing/general/2 ... today.aspx