So about this pop…
The reason shares shot higher by nearly one-third today has a lot to do with the big picture. Sure, the news revolved around Jakafi’s potential in pancreatic cancer, but it was also one of the first studies to show that treating the JAK pathway is a viable option for treating the disease. And it wasn’t really close for the placebo. Things are a bit different for treating autoimmune diseases, but the news still reminds investors that Incyte and its partners could be onto something big. Really big.
I’ve been eyeing shares of Incyte Corporation (NASDAQ:INCY) for a long time, but will now wait for a pullback — if it occurs — to begin a position. You could make a solid argument that the company is undervalued at just $5.5 billion, too. What are your thoughts? Let me know in the comments section below.
The article Does Incyte Deserve Its New Valuation? originally appeared on Fool.com and is written by Maxx Chatsko.
Fool contributor Maxx Chatsko has no position in any stocks mentioned. Check out his personal portfolio, his CAPS page, or follow him on Twitter @BlacknGoldFool to keep up with his writing on energy, bioprocessing, and biotechnology.The Motley Fool has no position in any of the stocks mentioned.
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