A Hold recommendation has recently been issued to drug discovery and development company Incyte Corporation (INCY) by Zacks senior pharmaceutical industry analyst Grant Zeng, CFA. Here's what his latest update had to say about it:
'Incyte Corporation is a Wilmington, DE-based drug discovery and development company, primarily in the focus on oral compounds to treat HIV, inflammation, and cancer. Recent discontinuation of dexelvucitabine or DFC (formerly Reverset), the most advanced candidate for HIV/AIDS, is a big setback for the company. However, we are optimistic about Incyte's CCR2 antagonist program.
'The company received a major boost recently with the announcement of a collaboration agreement with Pfizer (PFE) on this program. Several other candidates should enter the clinic in 2007, as well.
'At the current share price, we see the risk/reward relatively balanced for investors in Incyte. With the discontinuation of DFC development, the possibility of becoming profitable before 2011 is impossible for Incyte. Based on peer comparisons with other smaller genomic/pure discovery-based biotechnology companies, we believe that INCY shares are fairly valued at current levels. We maintain a Hold rating with a target price of $8.00, which corresponds to a market capitalization of $674 million, which we think is fair.'
Read the full analyst report on INCY.
Read the full analyst report on PFE.
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