Group 1 - Incyte Corp. (NASDAQ: INCY) is a biotechnology company operating in the healthcare sector [1] - The company was previously discussed in July 2022, with a bullish outlook on its shares [1] - The focus is on building financial assets for retirement through various trading strategies, including long and short positions [1] Group 2 - The article does not contain any disclosures regarding stock or derivative positions in Incyte Corp. [2] - The author expresses personal opinions and is not receiving compensation for the article, aside from Seeking Alpha [2] - There is no business relationship with any company mentioned in the article [2]

Group 1 - Brendan completed a Ph.D. at Stanford University in organic synthesis in 2009 [1] - He worked for Merck from 2009 to 2013 and has experience in biotech startups such as Theravance and Aspira [1] - Brendan is a co-founder of 1200 Pharma, which spun out of Caltech and received significant investment in the 8 figures [1] Group 2 - Brendan remains an avid investor focused on market trends, particularly in biotechnology stocks [1]

Financial Performance - Total revenues for the year ended December 31, 2024, were $4,241.2 million, a 14.8% increase from $3,695.6 million in 2023 [454]. - Product revenues, net, reached $3,618.9 million, up from $3,165.2 million in 2023, reflecting a 14.3% growth [454]. - The net income for 2024 was $32.6 million, a substantial decrease from $597.6 million in 2023 [454]. - Cash flows from operating activities for 2024 were $335,337 thousand, a decrease of 32.4% from $496,487 thousand in 2023 [461]. - Total stockholders' equity as of December 31, 2024, was $3,447,628 thousand, down from $5,189,837 thousand in 2023 [459]. - Net income for the year ended December 31, 2024, was $32,615 thousand, a decrease of 94.5% compared to $597,599 thousand in 2023 [461]. Research and Development - The company anticipates continued significant expenses in drug discovery and development, which may lead to future losses and challenges in achieving sustained profitability [310]. - Drug discovery and development expenditures are expected to increase as the company focuses on preclinical tests and clinical trials necessary for regulatory approval [311]. - Research and development expenses increased significantly to $2,606.8 million, compared to $1,627.6 million in 2023, marking a 60% rise [454]. - The company recognized a total of $679.4 million as research and development expenses related to the Escient acquisition [443]. - Research and development expenses include costs for clinical trials and pharmaceutical development, with amounts funded by collaborations recognized as incurred [507]. Acquisitions and Collaborations - The company acquired Escient Pharmaceuticals for $782.5 million, with $644.8 million allocated to the lead molecule EP262 as in-process research and development expenses [443]. - The company acquired exclusive global rights to tafasitamab for $25 million on February 5, 2024, enhancing its product portfolio [534]. - The Novartis collaboration agreement has generated $157.0 million in development milestones, $345.0 million in regulatory milestones, and $200.0 million in sales milestones since inception [546]. - The company entered into a collaboration agreement with China Medical Systems Holdings Limited for povorcitinib, recognizing an upfront payment of $25 million [576]. - The agreement with MacroGenics allows the company exclusive rights to develop and commercialize INCMGA0012, with total milestone payments to MacroGenics amounting to $215 million since inception [566]. Revenue Sources - The company derives a substantial portion of its revenues from royalties and milestone payments under collaboration agreements, with significant reliance on JAKAVI and OLUMIANT royalties [324]. - JAKAFI revenues increased to $2,792,107 in 2024, up 7.7% from $2,593,732 in 2023 [521]. - OPZELURA revenues grew significantly to $508,293 in 2024, a 50.4% increase from $337,864 in 2023 [521]. - Product royalty revenues from Novartis net sales of JAKAVI were $418.8 million in 2024, up from $367.6 million in 2023 [550]. - The Lilly agreement has resulted in $135.6 million in product royalty revenues related to OLUMIANT in 2024, consistent with previous years [555]. Financial Risks and Liabilities - The company may require additional capital in the future to fund its business plan and research and development efforts, depending on various factors including revenue generation and potential acquisitions [314]. - Changes in tax laws, such as the Tax Cuts and Jobs Act and the Inflation Reduction Act, could adversely affect the company's tax liabilities and financial condition [323]. - The company faces risks related to intellectual property, including potential litigation and the need to defend against infringement claims, which could disrupt drug development efforts [325]. - Current liabilities increased to $1,641.8 million in 2024, up from $1,240.4 million in 2023 [451]. - Total accrued and other current liabilities rose to $1.21 billion in 2024, up from $935.6 million in 2023, representing an increase of approximately 29% [591]. Inventory and Assets - Total inventory increased to $407.2 million in 2024 from $269.9 million in 2023, with raw materials at $27.6 million and API at $331.2 million [543]. - As of December 31, 2024, marketable securities totaled $470.3 million, primarily composed of U.S. government securities [428]. - Total assets decreased to $5,444.3 million in 2024 from $6,782.1 million in 2023 [451]. - The fair value of government debt securities increased to $470,263 as of December 31, 2024, from $442,667 in 2023 [522]. Operational and IT Risks - The company faces significant risks related to data security breaches, which could lead to loss of confidential information and reputational harm [339]. - The company is subject to potential fines under the General Data Protection Regulation, with fines up to €20 million or 4% of annual global revenue for noncompliance [342]. - The company is currently implementing a new enterprise resource planning system to support planned growth and manufacturing operations [338]. - The company is continuously evaluating and enhancing IT systems to address planned growth, which involves inherent costs and risks [338]. Stock and Equity - The company repurchased common stock amounting to $2,004,790 thousand in 2024, significantly impacting cash flows [461]. - Cash, cash equivalents, and restricted cash at the end of 2024 were $1,689,451 thousand, down from $3,215,221 thousand at the end of 2023 [461]. - The company assessed expected credit losses as de minimis, indicating strong creditworthiness of third-party sales relationships [533].

Core Viewpoint - Incyte Corporation reported mixed financial results for Q4 2024, with adjusted earnings per share falling short of estimates, while total revenues exceeded expectations, driven by strong performance from its key drugs Jakafi and Opzelura [1][2][3]. Financial Performance - Adjusted earnings for Q4 2024 were $1.43 per share, missing the Zacks Consensus Estimate of $1.53, compared to $1.06 per share in the same quarter last year [1]. - Total revenues for Q4 2024 reached $1.18 billion, reflecting a 16% year-over-year growth, surpassing the Zacks Consensus Estimate of $1.15 billion [2]. - For the full year 2024, Incyte generated revenues of $4.24 billion, indicating approximately 15% growth year over year, while adjusted earnings per share decreased to $1.08 from $3.52 in the previous year [12]. Drug Performance - Jakafi generated revenues of $773.1 million in Q4 2024, an 11% increase from the previous year, driven by a 14% rise in paid demand, exceeding the Zacks Consensus Estimate of $746 million [3]. - Opzelura cream sales reached $161.6 million, a 48% year-over-year increase, surpassing the Zacks Consensus Estimate of $150 million, attributed to growth in new patient starts and refills [4]. - Newly approved Zynyz generated $1.4 million in sales, while Iclusig and Pemazyre reported revenues of $27.4 million and $23.1 million, respectively, with Pemazyre beating its estimate [5]. Expense Overview - Adjusted research and development expenses totaled $420.3 million, up 3% year over year, primarily due to investments in late-stage development assets [10]. - Adjusted selling, general and administrative expenses were $299.7 million, reflecting an 11% increase from the prior year, mainly due to marketing activities [10]. Cash Position - As of December 31, 2024, Incyte's cash, cash equivalents, and marketable securities amounted to $2.2 billion, up from $1.8 billion as of September 30, 2024 [11]. 2025 Guidance - The company anticipates Jakafi revenues between $2.93 billion and $2.98 billion for 2025, with Opzelura net product revenues expected to be in the range of $630 million to $670 million [15]. - Adjusted research and development expenses are projected to be between $1.78 billion and $1.81 billion, while adjusted selling, general and administrative expenses are expected to range from $1.16 billion to $1.19 billion [15]. Recent Developments - Incyte and Syndax Pharmaceuticals received FDA approval for axatilimab-csfr, branded as Niktimvo, for treating GVHD, marking Incyte's second approved treatment for chronic GVHD [16]. - Management indicated that 2025 is expected to be a transformational year with four potential launches and several clinical milestones anticipated [17].

Financial Data and Key Metrics Changes - Incyte reported total revenues of $4.2 billion for 2024, a 15% increase compared to 2023, continuing steady growth since 2020 [6][8] - Jakafi net sales reached $2.8 billion, growing 8% year-over-year, while Opzelura saw a significant growth of 50% to $508 million [7][16] - The company ended 2024 with $2.2 billion in cash and no debt, maintaining a strong financial position [8] Business Line Data and Key Metrics Changes - Jakafi's net product revenue in Q4 2024 was $773 million, an 11% increase year-over-year, with total patients increasing by 10% [12][34] - Opzelura's Q4 net product revenue was $162 million, up 48% year-over-year, driven by growth in atopic dermatitis and vitiligo [15][36] - The full-year net revenue for Opzelura was $508 million, reflecting a 50% increase compared to 2023 [16][36] Market Data and Key Metrics Changes - The U.S. market for Opzelura is expanding, with significant contributions from new patients and refills in both atopic dermatitis and vitiligo [7][15] - The company anticipates continued growth in both U.S. and international markets, particularly in Germany, France, Italy, and Spain for Opzelura [36][93] Company Strategy and Development Direction - Incyte plans to leverage its existing commercial infrastructure to support the launches of new products, including Niktimvo and ruxolitinib cream [11][31] - The company aims to deliver over 10 high-impact launches by 2030, with multiple pivotal data readouts expected in 2025 [22][31] - A focus on expanding its pipeline and increasing investment in late-stage development assets is evident, with plans for at least three Phase 3 studies in 2025 [18][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong financial position and robust pipeline, anticipating significant revenue contributions from upcoming product launches [9][11] - The company expects continued demand growth for Jakafi and Opzelura, despite potential pricing pressures from regulatory changes [40][41] - Management highlighted the importance of achieving statistical significance in upcoming clinical trials to ensure competitive positioning in the market [60][76] Other Important Information - The company completed a $2 billion share repurchase during 2024, reflecting confidence in its financial health [8] - A leadership change was announced, with Mohamed Issa taking over as Executive Vice President, Head of U.S. Oncology [20] Q&A Session Summary Question: Expectations for Opzelura's Phase 3 in prurigo nodularis - Management indicated that if the Phase 3 data is similar to Phase 2 results, it would be a significant addition for patients [50] Question: Guidance for Opzelura - The guidance reflects continued demand growth and potential contributions from pediatric indications and European markets [55][56] Question: Impact of IRA on patient out-of-pocket costs - Management noted that while there may be some savings, the benefits may take time to materialize in sales [64] Question: Phase 3 trials for povo in hidradenitis suppurativa - Management confirmed that they expect to disclose data through a press release and a call with the investment community [80] Question: Mutant CALR and JAK2V617F programs - Management expects to provide proof-of-concept data for both programs later this year, focusing on traditional endpoints and early evidence of reduction [86]

Core Insights - Incyte reported $1.18 billion in revenue for Q4 2024, a 16.3% year-over-year increase, with an EPS of $1.43 compared to $1.06 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $1.15 billion by 2.63%, while the EPS fell short of the consensus estimate of $1.53 by 6.54% [1] Revenue Breakdown - Product royalty revenues were $159.29 million, slightly below the average estimate of $161.69 million, reflecting a 6.5% year-over-year increase [4] - Net product revenues for Iclusig were $27.37 million, compared to the average estimate of $29.69 million, marking a 0.9% year-over-year change [4] - Net product revenues for Pemazyre reached $23.14 million, exceeding the average estimate of $19.08 million, with a year-over-year increase of 12.1% [4] - Net product revenues for Minjuvi/Monjuvi were $32.81 million, slightly below the estimate of $33.75 million, but showed a significant year-over-year increase of 264.8% [4] - Net product revenues for Opzelura were $161.60 million, surpassing the average estimate of $150.33 million, with a year-over-year increase of 47.9% [4] - Net product revenues for Jakafi were $773.11 million, exceeding the average estimate of $745.88 million, reflecting an 11.2% year-over-year increase [4] - Net product revenues for Zynyz were $1.37 million, above the average estimate of $0.96 million [4] - Total product revenues amounted to $1.02 billion, exceeding the average estimate of $999.96 million, with an 18.3% year-over-year increase [4] - Royalty revenues for Olumiant were $38.49 million, slightly below the estimate of $39.58 million, showing a 4.6% year-over-year decrease [4] - Royalty revenues for Tabrecta were $6.29 million, in line with the average estimate of $6.27 million, reflecting a 34.4% year-over-year increase [4] - Royalty revenues for Jakavi were $114.19 million, slightly below the estimate of $116.30 million, with a 9.9% year-over-year increase [4] - Royalty revenues for Pemazyre were $0.33 million, below the average estimate of $0.67 million [4] Stock Performance - Incyte's shares have returned +5.1% over the past month, outperforming the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1 - Incyte reported quarterly earnings of $1.43 per share, missing the Zacks Consensus Estimate of $1.53 per share, but showing an increase from $1.06 per share a year ago, resulting in an earnings surprise of -6.54% [1] - The company posted revenues of $1.18 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.63%, compared to year-ago revenues of $1.01 billion [2] - Incyte shares have increased approximately 7.3% since the beginning of the year, outperforming the S&P 500's gain of 2.5% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $1.24 on revenues of $1.02 billion, and for the current fiscal year, it is $6.17 on revenues of $4.64 billion [7] - The Medical - Biomedical and Genetics industry, to which Incyte belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]

2024 Fourth Quarter & Full-Year Financial and Corporate Update February 10th, 2025 Fourth Quarter & FY 2024 Earnings Call Agenda Ben Strain Head of Investor Relations Introduction Hervé Hoppenot Chief Executive Officer Key Highlights & Commercial Review Pablo Cagnoni R&D Update President, Head of Research & Development Christiana Stamoulis Chief Financial Officer Financial Review Available for Q&A Matteo Trotta General Manager, U.S. Dermatology Steven Stein Chief Medical Officer 2 Forward Looking Statements ...

Exhibit 99.1 FOR IMMEDIATE RELEASE Incyte Reports 2024 Fourth Quarter and Year-End Financial Results, Provides 2025 Financial Guidance and Highlights 2025 R&D Milestones Conference Call and Webcast Scheduled Today at 8:00 a.m. ET WILMINGTON, Del. – February 10, 2025 – Incyte (Nasdaq:INCY) today announced financial results for the fourth quarter and full year ended December 31, 2024 and provided full year 2025 financial guidance. "2024 was an important year for Incyte, with a 15% increase in total revenues, ...

Core Viewpoint - Incyte (INCY) is expected to report strong quarterly earnings with a projected EPS of $1.58, reflecting a 49.1% increase year-over-year, and revenues forecasted at $1.15 billion, indicating a 13.5% increase compared to the same period last year [1]. Earnings Projections - The consensus EPS estimate has been revised upward by 3.2% in the last 30 days, indicating a reassessment by analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts project 'Revenues- Product royalty revenues' to be $161.69 million, reflecting an 8.1% increase year-over-year [5]. - 'Net product revenues- Iclusig' are expected to reach $29.69 million, indicating a 9.4% year-over-year change [5]. - 'Revenues- Product revenues' are forecasted at $979.15 million, representing a 13.6% increase from the prior year [5]. Specific Product Revenue Forecasts - 'Net product revenues- Pemazyre' are estimated at $22.54 million, showing a 9.1% increase year-over-year [6]. - 'Net product revenues- Minjuvi/ Monjuvi' are projected at $33.75 million, reflecting a significant increase of 275.2% from the previous year [6]. - 'Net product revenues- Opzelura' are expected to be $147.91 million, indicating a 35.4% increase year-over-year [6]. - 'Net product revenues- Jakafi' are projected to reach $744.96 million, reflecting a 7.2% increase [7]. - 'Royalty revenues- Olumiant' are expected to be $39.58 million, indicating a slight decrease of 1.9% [7]. - 'Royalty revenues- Tabrecta' are forecasted at $6.27 million, reflecting a 34.1% increase [7]. - 'Royalty revenues- Jakavi' are estimated at $116.30 million, indicating an 11.9% increase year-over-year [8]. Stock Performance - Over the past month, Incyte shares have recorded a return of +1.3%, compared to the Zacks S&P 500 composite's +1.7% change, suggesting that INCY is likely to perform in line with the overall market [9].