Incyte Corp. (INCY) announced that it has entered into a definitive agreement to acquire Escient Pharmaceuticals (a private company) for $750 million. The company’s key drug development candidates include EP262, a first in-class, potent, highly selective, once-daily small molecule antagonist of Mas-related G protein-coupled receptor X2 (MRGPRX2) and EP547, a first-in-class oral MRGPRX4 antagonist, writes John McCamant, editor of The Medical Technology Stock Letter.
In Phase I healthy volunteer studies, both drugs demonstrated a favorable safety/tolerability profile, and management expects clinical proof-of-concept for EP262 in chronic inducible urticaria (currently in Phase Ib), chronic spontaneous urticaria (Phase IIa), and atopic dermatitis (Phase IIs) in early-2025; and for EP547 in cholestatic pruritus (Phase IIa) also in early-2025 (with potential US approvals in 2029 for both drugs, according to INCY management).
Incyte Corp. (INCY)
With regard to the opportunity in atopic dermatitis, management views the mechanism of EP262 as highly complementary to Opzelura and thus could potentially be used in combination or post-Opzelura in inadequate responders. In our view, the acquisition makes strategic sense with the commercial and R&D synergies across dermatology and autoimmune disease.
INCY expects significant synergies, including utilization of commercial and R&D infrastructure and limited impact on 2024 R&D expenses. In our view, the acquisition makes strategic sense with the synergies across dermatology and autoimmune disease.
With the Escient acquisition, INCY now possesses different agents for a few overlapping indications (e.g., vitiligo, CSU, PN, asthma) with both oral and topical solutions. MRGPRX2 targets mast cells just like CLDX’ Barzo. Data to date show Barzo to be a much better drug with almost complete mast cell inhibition. That being said, there is an opportunity for an oral with less potency which could also be combined with a topical like Opzelura.
Recommended Action: Buy INCY.
