Incyte Leads S&P 500 Decliners on Skin Condition Drug Trial Results

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 issued the latest Phase III results for povorcitinib, an oral treatment for the skin condition hidradenitis suppurativa (HS). 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.

However, the rate at which patients reported a decrease in symptoms was lower than in previous trials 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 the data supports its previous plans to submit the 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 were down around 10% Monday, putting them about 5% above where they were a year ago. The move is the stock’s worst day since a disappointing sales guide last month sent shares 7% lower.