In a significant move, Incyte Corporation (INCY) has agreed to acquire Escient Pharmaceuticals for $750 million. This strategic acquisition enhances Incyte’s pipeline in the inflammatory diseases arena, with the addition of two promising assets: EP262, a small molecule antagonist of Mas-related G protein-coupled receptor X2 (MRGPRX2), and EP547, a first-in-class oral MRGPRX4 antagonist. According to Hervé Hoppenot, Incyte’s CEO, “EP262 and EP547 complement our portfolio, enabling us to leverage our expertise, address patient needs, and explore potential launch opportunities starting in 2029.”
Cantor Fitzgerald has initiated coverage on Incyte with a Neutral rating, recognizing the company’s undervalued shares due to substantial cash flow from Jakafi and Opzelura. However, the analyst expresses some concerns about Incyte’s pipeline prospects, suggesting that the company prioritize high-return pipeline candidates to maximize the potential of its R&D investment.
William Blair maintains a positive outlook on Incyte, emphasizing the potential of assets such as povorcitinib, while also highlighting the MRGPRX2 target as an intriguing opportunity in the chronic inducible urticaria market. The analyst believes that the approval of another significant asset before the end of the decade would significantly benefit Incyte in the long run.
Overall, the acquisition of Escient Pharmaceuticals positions Incyte strategically in the inflammatory diseases market, with the potential to leverage its expertise and address unmet patient needs. While some concerns remain about the company’s pipeline prospects, Incyte’s financial strength and the potential of its pipeline assets provide a strong foundation for future growth.