S&P500 drops by Incyte in Skin Condition Drug Trial Results

Key Takeaways

• Incyte’s shares fell Monday after the drugmaker announced the latest clinical trial data.
• The drug povorcitinib achieved its goal to reduce symptoms for a skin condition, but at a slower rate than previous studies.
• The drugmaker was the biggest decliner in the S&P 500 on Monday.

Shares of Incyte (INCY) sank nearly 10% Monday, making it the biggest decliner in the S&P 500 after the release of its latest clinical trial.

The company has released the latest results from Phase III for povorcitinib. This is an oral treatment that treats hidradenitis Supurativa. Incyte said both doses of the drug "met their primary endpoint" in the study, reducing the number of abscesses and inflammatory nodules caused by the disease by at least 50% compared to a placebo.

The rate of patients reporting a decrease in their symptoms was lower in this trial than in previous ones for the same drug.

Incyte said Monday that the drug's safety profile was similar to previous trials, and called the data a positive result. The company said that the data confirms its previous plans to submit this drug for regulatory approval.

"Given the limitations of current HS treatments and its impact on patients’ daily lives, there is a critical need for new, well tolerated and effective therapies that provide a rapid reduction in the signs and symptoms of HS, in particular, pain," Incyte Chief Medical Officer Dr. Steven Stein said.

Incyte shares fell around 10% on Monday. They are now about 5% higher than they were a month ago. This is the stock’s lowest day since a disappointing report last month sent shares lower by 7%.