Novartis AG (ADR) (NVS): Why Incyte Corporation (INCY) Shares Skyrocketed

Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on big changes — just in case they’re material to our investing thesis.

What: Shares of Incyte Corporation (NASDAQ:INCY), a biopharmaceutical company focused on developing therapies to treat oncology and inflammation-based diseases, skyrocketed as much as 32% after reporting top-line data from a proof-of-concept trial involving ruxolitinib for refractory metastatic pancreatic cancer.

Incyte Corporation (NASDAQ:INCY)

So what: In its phase 2a trial, Incyte Corporation (NASDAQ:INCY) notes that ruxolitinib — its oral JAK1 and JAK2 inhibitor that’s currently approved to treat myelofibrosis under the trade name Jakafi — when combined with Roche‘s Xeloda demonstrated a hazard ratio for overall survival in the intent to treat population of 0.79. In a pre-specified subgroup that was expected to benefit most from JAK pathway inhibition, the hazard ratio for overall survival was 0.47, with six-months survival at 42% for the ruxolitinib arm compared to just 11% for the placebo. Also, only patients in the ruxolitinib arm showed durable tumor response and significant improvement in body weight.

Now what: As you can tell by today’s move higher, this is incredibly good early stage news for advanced metastatic pancreatic sufferers. Furthermore, it appears that Incyte Corporation (NASDAQ:INCY) has already honed in on which subgroups would benefit most by JAK pathway inhibition, meaning that a companion diagnostic test may be unnecessary. Jakafi delivered improved overall survivial in a phase 3 myelofibrosis trial, which lends hope that ruxolitinib to treat metastatic prostate cancer will do the same. With regard to Incyte Corporation (NASDAQ:INCY), I’d love to see a pullback from today’s pop but would certainly understand if it didn’t.

Not to be forgotten in this as well is Novartis AG (ADR) (NYSE:NVS), which has full licensing rights to ruxolitinib outside the United States. If things continue to go well for ruxolitinib it’ll mean less lost sleep at night for Novartis AG (ADR) (NYSE:NVS) shareholders who are looking for new therapies to take the reins as patent expirations sweep through the pharmaceutical industry.

The article Why Incyte Shares Skyrocketed originally appeared on Fool.com and is written by Sean Williams.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!