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Incyte (INCY) shares are sinking after its third phase results for Povorcitinib, a drug for chronic skin disease, were less promising than those from earlier trials.
Yahoo Finance Senior Reporter Anjalee Khemlani outlines the details on Market Domination.
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Incyte. Shares are sinking as much as 10% today. That's after the drug maker released new data from a clinical trial. Joining us now, Yahoo Finance's Angelica Molani. And the data, it sounds like, was not as good as the last round of trial of this same drug.
That's right, Julie. That's exactly why investors reacted the way they did, and we saw the stock drop as much as 15% earlier today. You can see it paired back just a little bit. So, to recap what happened: The company had its phase three results for Povorsitnib, which is an oral drug for a chronic inflammatory skin disease. And that drug had shown pretty positive results able to reduce inflammation by 50 or more percent. So it didn't meet that end goal, but in not as many patients, uh, compared to placebo as in earlier trials. And so that's where you saw the drop off from investors. Now, taking a look at the sort of uh, competitive space where there is, there are some other drugs out there. There are also some traditional therapies, and that is all area that the company's focused on saying that despite that lower number, it still offers value. And so it is going to continue, uh, you know, in light of the fact that it does have some efficacy to continue forward with its filing with, uh, regulatory authorities to get approval. So despite the fact that the company didn't really wow Wall Street, it it believes that it still has a valuable enough product to move ahead.
