Incyte shares drop after FDA approves GSK’s competing blood-cancer treatment

Incyte Corp.
INCY,
-1.47%
shares dropped more than 5% premarket on Monday after the U.S. Food and Drug Administration on Friday approved a GSK PLC
GSK,
+0.11%
blood-cancer treatment, Ojjaara, that will compete with Incyte’s Jakafi. The FDA approved Ojjaara for use in patients with myelofibrosis, a rare blood cancer, with anemia. Ojjaara will likely put pressure on uptake of Jakafi as a first-line treatment for myelofibrosis, Truist Securities analysts wrote in a note Friday. The analysts maintained their buy rating on Incyte shares, saying they don’t anticipate that Ojjaara will impact Jakafi revenues from two other conditions, polycythemia vera and graft-versus-host disease. Incyte shares have dropped more than 22% in the year to date, while the S&P 500 has gained 15.9%.