We keep our 12-month target price at $82, reflecting a forward P/E ratio of 26.5x our 2020 earnings estimate of $3.01. Q4 earnings of $0.65 vs. $0.66 surpassed our expectation by $0.06, primarily due to lower-than-expected operating expenses. We keep our 2020 EPS estimate at $3.01 and start our 2021 EPS estimate at $4.05. Product and royalty revenues increased 24% YoY to $579 million as Jakafi sales expanded 23% to $466 million. Following the recent positive results from the TRuE-AD2 Phase 3 trial of ruxolitinib cream in patients with mild-to-moderate atopic dermatitis and assuming the TRuE-AD1 trial also demonstrates positive results later in Q1, we expect INCY to submit a New Drug Application (NDA) to the FDA by Q4 2020. In 2020, we also look forward to data on parsaclisib's efficacy in non-Hodgkin's lymphomas and regulatory decisions for INCY's less significant clinical candidates pemigatinib (FDA decision anticipated by end of May) and capmatinib (submitted for NDA in February).
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