Positive momentum for biotech Incyte

The moment awaited for a long time by many investors of US-based Incyte has apparently come. The Wilmington, Delaware-based biotech company is about to obtain a positive approval by a panel of FDA experts for its rheumatoid arthritis therapy Olumiant (baricitinib). Olumiant was licensed to Eli Lilly in 2009. Should Eli Lilly succeed to market Incyte, it will receive significant royalties on the generated profit. Incyte has recently published its Q4 2017 results, which have exceeded analysts’ expectations thanks to Jakafi, which yielded sales of $302m in 2017, including income from royalties as part of the license contract with Novartis. Indeed, Incyte has sold Novartis its rights to Jakavi outside the US, in return for royalties on profit. The forecasts on Jakafi for 2018 predict revenues of approximately $1.35 to 1.40bn. Revenues are expected to increase over the next ten years, reaching $3bn in 2027. Many analysts consider Incyte a target, indeed, according to news circulated two days ago, Novartis is about to acquire the Delaware-based biotech, which has now reached a  $18bn capitalization.