There are numerous unmet medical conditions which are quite serious and require only the intake of small molecule drugs made by companies such as Incyte Corporation (NASDAQ:INCY). The company, which was founded in 1991 with its headquarters located at Wilmington in Delaware, has a market cap of around $5.52 billion. Some of its competitors include Amgen Inc, Celgene Corporation, and Roche Holding AG with market cap of $78.84 billion, $56.58 billion and $218.44 billion respectively. Its name is linked with developing JAK inhibitors.


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INCY Reliance on INCY About to Pay Dividends

One product which INCY develops commercially is Jakafi. This product has brought in revenue worth around $54.1 million in the second quarter of 2013. This compares favorably with the $29.7 million which the company reported in the second quarter of 2012, thus representing growth of roughly 82.2%. Total revenues also increased by around 17.7% to settle at around $101.7 million, compared with the $86.5 million reported during the second quarter of 2012. The company got $0 as international royalties in 2012, which improved to $5.8 million in 2013.

While INCY may have been in existence for close to two decades, it is considered to be relatively young. Since most of its products are still in a developmental stage, this is what the company is associated with. A significant amount of the company’s revenue was obtained from the research collaborations it entered into with Novartis. Based on what I have noticed thus far, I think there is a lot of potential for this company, since most of its products are still in the pipeline. The future seems to be carrying a lot of potential and will be quite profitable.

INCY Investors Have Every Reason to be Optimistic

Investors have several positives to look forward to in future. As the company continues to perform more trials with the products which it has in the pipeline, it is hoped that this will give INCY a much better foothold and share of the market. Incyte is focused on developing drugs which are designed to treat diseases such as PV and pancreatic cancer. Its baricitinib drug is designed to treat autoimmune diseases. Since some of these drugs are still at the trial and developmental stage, the returns will not come in until after several years.

I bet that the company’s future is heavily reliant on how its JAK inhibitors, primarily Jakafi, will perform in the market. I don’t see much interference with this process since the company is already working on the successful trials for all the drugs it has in the pipeline. Therefore, I would recommend it to anyone with a keen eye on making long term investments which have a greater and much better future. My opinion is that the return on investments from Incyte is worth the effort. This stock is a must have, and all investors must add to their portfolio.

Incyte has to contend with some very huge companies which have already made a name for themselves within the same industry of biotechnology, and healthcare research. But it seems to have a good future.

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