Incyte is developing a drug which prevents cancer tumors effectively ‘hiding’ from the body’s immune system which fights disease.
When the body encounters foreign bodies which could do it harm, our immune system kills it off or may reject it in the case of say an organ transplant. But in the same way a female foetus does not reject sperm from a foreign body – an IDO enzyme protects the tumour or foreign body from the immune system – by inhibiting the IDO enyzme, the tumours cannot hide from the immune system!
All sound simple, but drug development is anything but smooth!
2CentView fair value for $INCY = $60 vs 123, consensus target price 144.
So the stock is expensive – the trials data the company will present in June needs to be good – also Gilead has been rumored as a potential buyer of $INCY, so the price also includes some take over premium.
Biotech stocks are very risk, keep positions manageable and be prepared for downside shocks!
If you like $INCY, keep an eye on the stock and hope for a pull back to 80-100 area,
$GILD fair value = $80.