WILMINGTON, Del. - Incyte (NASDAQ:INCY), a global biopharmaceutical company, has agreed to acquire Escient Pharmaceuticals, including two first-in-class small molecule antagonists, EP262 and EP547, which are seen as potential treatments for various inflammatory disorders.
The transaction is valued at $750 million plus the net cash of Escient at the close, with adjustments customary to such agreements.
EP262, an oral MRGPRX2 antagonist, has shown promise in treating chronic inducible urticaria and is currently in a Phase 2 study for chronic spontaneous urticaria. EP547, another oral antagonist targeting MRGPRX4, could potentially treat cholestatic pruritus and other conditions associated with severe itching.
The acquisition aligns with Incyte's strategy to bolster its portfolio with differentiated and first-in-class medicines, particularly in the inflammation and autoimmunity (IAI) space.
Incyte's CEO, Hervé Hoppenot, expressed enthusiasm about the potential of the new additions to address the needs of patients with inflammatory diseases, with potential launches beginning in 2029. Escient’s President and CEO, Joshua A. Grass, noted that Incyte's experienced teams are well positioned to translate these new scientific discoveries into valuable medicines for patients.
The safety and tolerability of EP262 were supported by a Phase 1 study involving 64 healthy volunteers, with results indicating lower incidence of mild treatment-emergent adverse events compared to placebo, and no serious or severe adverse events.
The acquisition is subject to standard regulatory approval, including clearance under the Hart-Scott-Rodino Act, and is expected to be completed by the third quarter of 2024. Advisory services for the transaction were provided by Centerview Partners LLC and Goldman Sachs (NYSE:GS) & Co. LLC for Escient, with legal counsel from Fenwick & West LLP. Incyte was advised legally by Covington & Burling LLP.
An analyst and investor call was held by Incyte today at 8:00 a.m. ET to discuss the acquisition details.
Chronic urticaria, the target condition for EP262, is a long-lasting form of urticaria that presents with itchy hives, potentially affecting patients' quality of life. EP547 aims to address pruritus associated with cholestasis and uremia through its targeted mechanism of action.
Incyte's acquisition of Escient is seen as a strategic move to expand its pipeline and capabilities in developing treatments for immune and neuro-immune disorders. This news is based on a press release statement.
InvestingPro Insights
In the wake of Incyte's strategic acquisition of Escient Pharmaceuticals, investors are closely monitoring the financial health and market position of Incyte (NASDAQ:INCY). According to InvestingPro data, Incyte boasts a market capitalization of $11.66 billion, underscoring its significant presence in the biopharmaceutical industry.
The company's Price/Earnings (P/E) ratio stands at 19.56, reflecting investor sentiment about its earnings potential relative to its stock price. Furthermore, with a PEG ratio of 0.26 for the last twelve months as of Q4 2023, Incyte's share price appears to be undervalued in relation to its earnings growth, indicating a potentially attractive investment opportunity.
Delving into the InvestingPro Tips, Incyte holds more cash than debt on its balance sheet, which could provide financial flexibility and stability as it integrates Escient's assets. Moreover, the stock is currently in oversold territory according to the Relative Strength Index (RSI), potentially signaling a buying opportunity for investors.
For those seeking more detailed analysis, InvestingPro offers additional tips on Incyte, including insights on earnings revisions, stock volatility, and liquidity. Interested investors can access these insights and more by visiting InvestingPro, and with the use of the coupon code PRONEWS24, they can obtain an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 10 more InvestingPro Tips available that could further inform investment decisions regarding Incyte.
As Incyte prepares for potential product launches and navigates the regulatory approval process for its recent acquisition, these financial metrics and expert tips can help investors make more informed decisions in the context of the company's long-term growth strategy.
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