No-Moat Incyte's Pipeline Momentum Strengthens Long-Term Growth Prospects

Incyte built a solid foundation over the past decade with its flagship hematology drug Jakafi, and the approval of the same active ingredient (ruxolitinib) as dermatology drug Opzelura is expanding the firm's focus to new therapeutic areas. We think the strategy to find more effective combination therapies in hematology and build a larger oncology and dermatology portfolio is solid, although we're waiting for key data before assuming the firm can grow significantly through Jakafi's patent expiration in 2028.