Incyte initiated with a Buy at Jefferies

Jefferies analyst Kelly Shi initiated coverage of Incyte with a Buy rating and $81 price target. The company’s “cornerstone asset” Jakafi has propelled high growth for the past decade, and the 2028 loss of exclusivity will likely result in a $2.6B revenue hole, the analyst tells investors in a research note. However, the firm thinks Incyte’s new dermatology franchise in should renew the revenue stream faster than the Street realizes. It projects above-consensus $1.9B peak sales for topical Opzelura in eczema/vitiligo and $1.4B peak sales for oral JAKi povorcitinib in vitiligo, “leaving franchise extensions as free call options.”