The extended-release version of Incyte's cancer drug Jakafi did not get the green light
The shares of Incyte Corporation (NASDAQ:INCY) are down 5.3% at $68.33 at last check, after the U.S. Food and Drug Administration (FDA) failed to approve the extended-release version of the company's cancer drug Jakafi, which will lose market exclusivity in 2028.
The shares are trading at their lowest level since October, and eyeing their worst single-day percentage drop since August 2022. The security now carries a 14.7% year-to-date deficit, and has breached a recent floor at the $72 region. Meanwhile, the 20-day moving average has been acting as pressure since early February.
The options pits lean overwhelmingly bearish, per INCY's 50-day call/put volume ratio of 1.52 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than all readings from the past year.
Options look like a solid way to bet on Incyte stock's next moves. This is per the equity's Schaeffer's Volatility Index (SVI) of 24% that sits higher than just 14% of annual readings.