Incyte Stock Is Down: Buy the Dip?
Things have been a bit rough for Incyte (NASDAQ: INCY) over the past month. The biotech company's stock is down by 14% since Dec. 1. In particular, Incyte's shares recently fell by 12% after the company announced disappointing results for a pivotal phase 3 trial. The trial in question, called Gravitas-301, investigated the efficacy of the combination of two drugs -- Itacitinib and corticosteroids -- as a treatment for acute graft-versus-host disease (GVHD), a condition that sometimes develops in a patient following a stem-cell transplant.
The trial failed to meet its primary or secondary endpoints. Despite these recent losses on the stock market, though, Incyte's shares aren't cheap: The company is currently trading at 40 times past and 25 times future earnings. Is Incyte worth its rich valuation metrics? And given its recent slump on the stock market, is now a good time to buy its shares?
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Source Fool.com
