Incyte falls after late-stage data from experimental skin disease drug

Drugmaker Incyte Corp's INCY.O shares fall ~14% to $58.5 premarket

Co's experimental drug, povorcitinib, meets the main goal of two separate late-stage studies testing it in patients with an inflammatory skin condition called hidradenitis suppurativa

At least three analysts said that the data shows the drug is not as effective as its prior studies, which could make it less competitive against other treatments for the condition

Novartis NOVN.S Cosentyx and UCB UCB.BR Bimzelx is already approved to treat this condition

Truist securities analysts said that while the data will help get the drug approved, given the significant need for patients, its commercial potential may be impacted

Hidradenitis suppurativa is an acne-like condition that causes painful bumps and lesions in and under the skin

Up to last close, stock had risen 15.2% in the past 12 months