Reports of results from the December 1-4 meeting of the American Society of Hematology continue to move biotech stocks. Today it was Incyte’s (INCYWealth Strength IndexINCY is Moderately Flat and trending Up) turn. The company announced positive results for a Phase 2 trial evaluating Incyte’s Jakafi in combination with corticosteroids in patients with acute graft-versus-host disease who failed to respond adequately to corticosteroids alone. The study met its primary endpoint with patients showing an overall response rate of 55% at day 28 of the trial.
The U.S. Food & Drug Administration approved Jakafi for myelofibrosis is 2011 and for polycythemia vera in 2014. The FDA is currently reviewing the company’s marketing application for Jakafi in graft-versus-host-disease with an action date of February 24, 2019.
Today on the news Incyte shares were up 6.33% to $68.32. The stock now sits just at the verge of reversing a series of lower highs on its chart. Right above today’s close there’s the November 7 high of $69.03. Then comes a $69.94 high from October 3 and a September 5 high of $74.23.
Establishing a new high that broke this downward trend would clear the stock for further advances on positive news on Jakafi.
Shares of Incyte are up 53.39% since I added them to my Jubak Picks Portfolio on April 1, 2014. I should have lowered the target price on Incite long ago (in fact I though I had.) My new target price is $93 a share, down from the once realistic but no longer so $145.