Biotech Values

[NP1986]

INCY Q2 2011 Earnings CC

Press Release

A few interesting items that came up in the CC:
(1) As mentioned in the press release, enrollment is lagging behind schedule for the ruxolitinib trial in polycythemia vera (PV). INCY/NVS are planning to amend the protocol of the study to loosen the entry criteria and perhaps to decrease the sample size. One of the analysts asked whether this reflects a relatively small market opportunity in PV, or whether the entry criteria were too stringent from the get-go. Management claims it is the latter, but would not specify what amendments they are looking to make.

(2) They seem rather lukewarm on the prospects of the Sheddase inhibitor, given that the HER2 breast cancer space is becoming increasingly crowded. I hope they move forward with the program since I think it is an interesting approach, but it's understandable if they don't.

(3) On the issue of ruxolitinib pricing, they said it would be set closer to the PDUFA date (December 3rd). In response to an analyst's question, Pat Andrews suggested that the annual price would be at the higher end of the $40,000-$60,000 range, but could be even higher than $60,000.