Incyte stock tumbled below its 200-day line Tuesday after sales of the company's new skin treatment lagged the Street's second-quarter expectations.
During the June quarter, Opzelura generated $16.6 million in sales, below forecasts for $20 million to $27 million, according to RBC Capital Markets analyst Brian Abrahams. Incyte's Opzelura treats eczema and just gained approval in the U.S. to treat vitiligo, a skin pigment disorder.
"A weak quarter for Opzelura — reflecting challenges transitioning from free to commercial drug that the company had recently alluded to but appeared to be greater than expected — is likely to drive a bearish near-term trade," Abrahams said in a note to clients.
That came to fruition early Tuesday. On the stock market today, Incyte stock plunged 6.2% to close at 72.58.
Incyte Stock: Jakafi Beats Estimates
Overall, sales grew 29% to $911.4 million and came in above forecasts for $818.5 million, according to FactSet. Incyte earned 72 cents per share, minus some items. Earnings climbed about 7% on a year-over-year basis and topped expectations by 16 cents.
Incyte's biggest moneymaker, Jakafi, brought in $598 million in sales, growing 13% vs. this time last year. That also beat projections, Abrahams said. Jakafi treats two types of cancer, along with graft vs. host disease. The latter is a complication of some organ transplants.
"However, it is unlikely to offset a weak quarter for key growth driver Opzelura," he said as Incyte stock toppled to a six-week low, according to MarketSmith.com.
Jakafi Sales Guide Raised
Incyte raised the low end of its outlook for full-year Jakafi sales and now expects $2.36 billion to $2.4 billion in sales. Analysts' projections were already in the middle of that at $2.38 billion.
The company also discontinued testing a treatment called itacitinib in graft vs. host disease patients. Abrahams had only expected $119 million in sales of the drug based on prior setbacks.
Abrahams kept his outperform rating and 88 price target on Incyte stock.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
