Incyte stock broke out to a 17-month high Tuesday after sales of the company's two key products, Jakafi and Opzelura, beat analysts' third-quarter projections, leading to a guidance boost.
William Blair analyst Matt Phipps described the report as "solid."
Third-quarter sales climbed 24% to $1.14 billion, beating expectations for $1.07 billion, he said in a note to clients.
"This marks another strong quarter for both of the company's key products, Jakafi and Opzelura, with the company on track to exceed prior full-year Jakafi revenue guidance, which was raised to a new range of $2.74 billion to $2.77 billion along with the earnings report," he said.
Incyte stock jumped 12% to 73.60 at the close. Shares broke out of a flat base with a buy point at 70.36, MarketSurge chart analysis shows.
Jakafi Demand Boosts Incyte Stock
Jakafi sales came in at $741 million, growing 16% to top expectations for $718 million. Jakafi treats some forms of cancer and graft-versus-host disease. Incyte noted this was driven by patient demand, which rose 10% year over year.
"We are encouraged to see Jakafi continuing to demonstrate steady growth, as this has been a major concern for investors with increased competition in the myelofibrosis space," Phipps said. "The company's decision to raise guidance should help assuage fears of competition being a major headwind."
Phipps rates Incyte stock an outperform.
Opzelura generated $139 million in sales, up 52% year over year. Analysts expected Opzelura to bring in $130 million to $135 million, according to analysts' reports. RBC Capital Markets analyst Brian Abrahams says investors likely expected this "based on strong summer prescription trends."
He has a sector perform rating and 67 price target on Incyte stock.
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