By Emily Dattilo
Shares of Incyte were spiraling lower Tuesday after the biopharmaceutical company provided negative updates on two research studies.
Incyte stock plummeted 1 4% to $66 .36 in Tuesday trading, on track for its largest daily percentage decrease since 2018, according to Dow Jones Market Data. It was also the worst performer in the S&P 500.
The company said that two Phase 2 studies hit roadblocks, including one involving MRGPRX2 (INCB000262), a treatment for a range of inflammatory disorders.
Incyte said it will pause enrollment in its Phase 2 study of MRGPRX2 (INCB000262) in chronic spontaneous urticaria -- a condition that causes hives to appear for more than six weeks.
The decision was made following the observation of certain preclinical toxicology findings, Incyte said in a statement.
William Blair analysts led by Matt Phipps, who rate Incyte at Outperform, called the news disappointing. They highlighted that the 262 candidate was a centerpiece of Incyte's $750 million acquisition of Escient Pharmaceuticals earlier this year.
The information has been shared with the U.S. Food and Drug Administration and the company will work closely with the regulator to determine next steps, Incyte said.
In addition, data from a Phase 2 study of MRGPRX4 (INCB000547) "does not support further development," they added. The treatment is for cholestatic pruritus -- skin itching caused by the slowing of bile movement from the liver.
Write to Emily Dattilo at emily.dattilo@dowjones.com
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(END) Dow Jones Newswires
November 19, 2024 12:21 ET (17:21 GMT)
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