What Happened?
Shares of biopharmaceutical company Incyte Corporation (NASDAQ: INCY) jumped 1.5% in the afternoon session after the company announced Health Canada's approval of its Opzelura cream for treating atopic dermatitis in children.
Incyte's Canadian division stated that Opzelura, a non-steroidal topical cream, was approved for pediatric patients aged two and older with mild to moderate conditions not adequately controlled by other topical therapies. This marked the third Canadian regulatory approval for the product. Following the positive regulatory news, Stifel raised its price target for Incyte, expecting the approval to contribute to the company's revenue growth. This signaled confidence in the drug's expanded market potential.
After the initial pop the shares cooled down to $89.27, up 1.3% from previous close.
Is now the time to buy Incyte? Access our full analysis report here.
What Is The Market Telling Us
Incyte’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 7 months ago when the stock dropped 15.2% on the news that the company released phase three trial data for a skin condition treatment, which fell below Wall Street's expectations. According to the data, the drug was effective for less than half of the participants who took it in the trials.
Incyte is up 28.4% since the beginning of the year, and at $89.27 per share, has set a new 52-week high. Investors who bought $1,000 worth of Incyte’s shares 5 years ago would now be looking at an investment worth $984.99.
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
