At the European Society for Medical Oncology (ESMO) conference, Incyte Corporation (NASDAQ:INCY) presented updated data from its Phase I trial of epacadostat and Keytruda, including median progression free survival (mPFS) of over 12 months in treatment (tx)-naïve melanoma patients. The data read-out has left Cowen top analyst Eric Schmidt impressed with the biotech firm. As such, the analyst reiterates an Outperform rating on INCY without listing a price target.

Schmidt asserts, “We are pleased that the melanoma data continue to mature in a favorable fashion and support the view that epacadostat+Keytruda could be a best in class IO combination. Epacadostat+Keytruda continues to demonstrate a response rate well above what was reported in Keytruda’s pivotal KEYNOTE-006 melanoma monotherapy trial.”

Earlier this week at Cowen’s 19th Annual Therapeutics Conference, consultants recognize “a couple of ways in which the epacadostat+Keytruda combination could win.”

“While our consultants are not sure how to interpret the epacadostat+Keytruda combo’s 55% ORR rate relative to what has been observed with Keytruda, they are very impressed by the depth of responses seen with the epacadostat+Keytruda combo,” the analyst noted.

As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, top five-star analyst Eric Schmidt has achieved a high ranking of #69 out of 4,190 analysts. Schmidt upholds a 53% success rate and gains 22.7% in his yearly returns. When recommending INCY, Schmidt garners 22.1% in average profits on the stock.

TipRanks analytics demonstrate INCY as a Strong Buy. Based on 13 analysts polled in the last 3 months, 100% rate a Buy on INCY. The consensus price target stands at $105.30, marking a nearly 9% upside from where the stock is currently trading.