Raising Our Incyte Fair Value Estimate to $120 Following 2020 Results and Pipeline Advancement

We're raising our Incyte fair value estimate to $120 per share from $111 following solid 2020 results that were slightly ahead of our expectations, as well as significantly stronger operating leverage implied in management's 2021 guidance over our previous forecast, despite continued investment in phase 3 programs and ongoing/upcoming drug launches. Sales of key hematology drug Jakafi sales grew 15% in 2020, with the firm's overall 18% product and royalty revenue benefiting from launches of cancer drugs Pemazyre and Monjuvi and strong 38% royalty growth for immunology drug Olumiant.