Shares of Incyte Corporation (Nasdaq: INCY) came under pressure mid-day on Tuesday. Morgan Stanley put out a note on Incyte, pointing out withdraw syndrome side effect in a recent case report from the Journal of Clinical Oncology.
Analyst David Friedman thinks additional safety events will skew risk/benefits of Jakafi to primarily treating 'sicker' MF patents.
"The presence of a very serious safety issue which complicates drug discontinuation could yield less aggressive dosing," said Friedman. "Our work suggests that docs are mostly planning on treating their more severe MF pts. Incyte appears to be suggesting that treating MF pts earlier (and possibly milder) could yield better results for pts and better sales growth for the company. We believe more safety events, including cases of this withdrawal syndrome, could incrementally skew the risk/benefit balance to remain in favor of still treating mainly the sicker MF pts."
Morgan Stanley has an Underweight rating on Incyte with a price target of $14.