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Incyte Corporation Message Board

  • david_gaithersburg david_gaithersburg Aug 27, 2013 2:34 PM Flag

    The Balance Sheet

    Uh, how many here have bothered to glance at this company's balance sheet?

    The debt-to-equity ratio is negative!

    Total debt to total assets is greater than one! This means total debt is greater than total assets.

    This company needs to shore up the asset side of the balance sheet, pronto. They don't need to do one secondary, they need to do several.

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    • Basically, you're looking at a number that's meaningless for a company in Incyte's position. They have cash for anything they're likely to want to do EXCEPT a US pivotal study on a novel compound (bringing new indications on-label for Jakafi is within their financial capabilities). It's possible they might want to move the IDO inhibitor or one of the JAK-1 specific drugs to market starting some time in the 9-15 month time frame, but it seems best to postpone arranging for money to do that, as both Incyte's creditworthiness and conditions in the mid tier of the credit market are improving.

      I've been advised that when trying to estimate static value of a drug company, a profitable drug should be valued at around 5 times maximum sales. Giving Jakafi $800MM for MF, $600MM for PV and another $600MM for cancer palliation (rather low numbers, really).......the whole rest of the company besides Jakafi is going for a negative value. And part of that negatively-valued residue is Baricitinib, a drug with a real prospect of giving Incyte a 25% share of a $3bln+ market.

    • Thanks David....Did you just get hired? If you really do your DD you will see they just retired much of this LTD.... Oh I forgot...they don't give you and TJ and Vaseline much access to this info at the BR....

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