Incyte shares stage slight recovery after sell-off

Incyte shares rebound modestly after heavy sell-off that followed capital raise announcement

• On 12:22 pm EDT, Monday September 28, 2009

NEW YORK (AP) -- Shares of Incyte Corp. staged a slight rebound Monday as the broader market climbed and a JMP Securities analyst said Wall Street should start to focus on upcoming clinical trial data for Incyte's drug candidates.

Last week, Incyte said it would raise money by selling new stock and debt. Its share price fell nearly 19 percent over the following three trading days.

JMP analyst Liisa Bayko said Incyte's financial position has improved, and its shares should rise as investors look for positive data on several experimental Incyte drugs.

Shares of the Wilmington, Del.-based drug maker added 28 cents, or 4.2 percent, to $6.88 in midday trading Monday.

Bayko said Incyte will report data for a breast cancer drug candidate and for its janus kinase inhibitor treatments in December, and will have data for an arthritis drug in early 2010. She said the company could also enter one or more partnerships on its drug candidates.

Janus kinase inhibitors are designed to block a type of enzyme that is involved in inflammatory diseases, bone marrow diseases and cancers. Incyte is developing a janus kinase inhibitor called INCB18424 as a treatment for myelofibrosis, psoriasis, rheumatoid arthritis and blood disorders.

Bayko said Incyte raised about $519 million, excluding expenses, through its stock and debt offerings. She kept a "Market Outperform" rating on Incyte shares with a price target of $10.

Buzz up!