Incyte shares rise on favorable pipeline outlook

The stock rose 17 cents, or 1.7 percent, to $10.40. Shares have traded between $4.75 and $12.83 over the last 52 weeks.

The drug candidate, INCB18424, is currently in a midstage study for rheumatoid arthritis. In a presentation planned for June, the company will review data showing that four of six patients taking the drug showed improvement in signs and symptoms. The 28-day study also involves two patients on placebo.

The data are inline with Incyte's previous disclosures on the developing drug and support positive expectations, in light of the short treatment period, said Piper Jaffray analyst Thomas Wei, in a note to investors.

He reaffirmed a "Buy" rating with a $19 price target and expects positive data presented in both June and then during the fall at the American College of Rheumatology's meeting.

Meanwhile, Banc of America Securities analyst Katherine S. Kim reaffirmed a "Buy" rating with a $15 price target. She also expects rheumatoid arthritis data in June, along with positive data on the developing diabetes treatment INCB13739.

Other programs include INCB18424 in myelofibrosis, a bone marrow disease, which the company plans to move into midstage and late-stage studies during the fourth quarter.

"We believe that once the pivotal studies start, enrollment should be brisk, allowing for approval in 2010, Kim said, in a note to investors.

Meanwhile, study results from early and midstage studies on myelofibrosis will likely be presented at the upcoming American Society of Clinical Oncology's annual meeting in June.