Please ensure Javascript is enabled for purposes of website accessibility

Why Incyte Stock Lost 11% in April

By Demitri Kalogeropoulos - May 8, 2019 at 9:48AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors braced for bad earnings news from the biotech specialist, but Incyte surpassed those expectations late in the month.

What happened

Biotech specialist Incyte (INCY -0.81%) trailed the market last month as the stock shed 11%, compared to a 4% jump in the S&P 500, according to data provided by S&P Global Market Intelligence.

Shareholder returns are in solidly positive territory over the past year, though, with Incyte up 32% in that time, compared to an 8% increase in the broader market.

Two medical researchers working on a treatment.

Image source: Getty Images.

So what

Investors sent the stock lower in April as they braced for potentially bad news in the company's first-quarter earnings report. However, the actual results contained positive operating news. On April 30, executives revealed that a 20% increase in sales for its Jakafi treatment helped drive Incyte's sales higher by 30%. The development pipeline is packed with several potential commercial wins, including a cream that could treat vitiligo, a skin condition that affects pigmentation.

Now what

Investors will have to wait for more clinical results before judging the commercial strength of that cream and of Incyte's other treatments currently working their way toward Food and Drug Administration clearance. In the meantime, the company affirmed its sales outlook for Jakafi and still sees the drug delivering revenue of between $1.58 billion and $1.65 billion this year.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Incyte Corporation Stock Quote
Incyte Corporation
$74.90 (-0.81%) $0.61

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.