ARGUS Upgrades Incyte Corp. (INCY) to Buy

August 29, 2008 9:26 AM EDT

ARGUS upgrades Incyte Corp. (Nasdaq: INCY) from Hold to Buy based on valuation and the solid trial results of INCB18424.

ARGUS analyst says, "In the last three months, the shares have declined by 23%, underperforming the Nasdaq Biotechnology Index by 17%. We think the stock now offers investors a favorable entry point. Incyte has several pipeline products that target major medical conditions, ranging from HIV and cancer to inflammation and diabetes. It has reported favorable results in product trials to treat myelofibrosis, HIV, diabetes, and cancer. However, the company has no products on the market and has yet to turn a profit. Nevertheless, we believe that Incyte could reach profitability within four years if it is able to gain approval for certain product candidates. We also note that it has a strong development partner in Pfizer, which adds a degree of stability. Several product candidates have advanced smoothly through early-stage trials and appear to have strong potential. Still, given the company's lack of profitability, we believe that an investment in INCY is suitable only for highly risk-tolerant investors."

Incyte Corporation (Incyte) is a drug discovery and development company focused on developing small molecule drugs to treat serious unmet medical needs.

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