Incyte Corporation (INCY Quick QuoteINCY - Free Report) announced that the first patient has been treated in a phase III study (ECHO-301) evaluating epacadostat in combination with Merck & Co. Inc.’s (MRK Quick QuoteMRK - Free Report) Keytruda for the first-line treatment of patients with advanced or metastatic melanoma. We expect investors to react positively to the news.

The randomized, double-blind, placebo-controlled study will enroll 600 patients. While the two primary endpoints of the study are progression-free survival and overall survival, key secondary endpoints include objective response rate, safety and tolerability. Incyte anticipates initial data from the ECHO-301 study in 2018.

According to information provided by the company, in the U.S., melanoma accounts for approximately 5% of all new cases of cancer each year. In the EU, there are about 41,000 new cases of melanoma each year, resulting in approximately 11,000 deaths annually.

We note that the ECHO-301 study is sponsored by both Incyte and Merck. Incyte is also collaborating with Merck to evaluate epacadostat in combination with Keytruda in a phase II study (ECHO-202) across multiple tumor types.

Additionally, epacadostat is being evaluated in several phase I and phase II studies in combination with PD-1 and PD-L1 inhibitors across a variety of other cancer histologies.

Incyte is a Zacks Rank #3 (Hold) stock. A couple of better-ranked stocks in the health care sector are Bristol-Myers Squibb Company (BMY Quick QuoteBMY - Free Report) and ANI Pharmaceuticals, Inc. (ANIP Quick QuoteANIP - Free Report) , each carrying a Zacks Rank #1 (Strong Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>