It has been about a month since the last earnings report for Incyte (INCY) . Shares have added about 0.9% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Incyte due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Incyte's Q2 Earnings Lag Estimates, Revenues Top Inc ...

Incyte (INCY) announced that the late-stage inMIND study on tafasitamab met its primary and secondary endpoints. This phase III study is evaluating the efficacy and safety of tafasitamab, a humanized Fc-modified cytolytic CD19 targeting monoclonal antibody, or placebo in combination with Revlimid and Rituxan compared to Revlimid and Rituxan alone in patients with relapsed or refractory follicular lymphoma (FL). The trial met its primary endpoint of progression free survival (PFS) by investigator assessment ...

Product Development and Approvals - JAKAFI (ruxolitinib) is a key product for the company, approved for multiple indications including myelofibrosis and graft-versus-host disease, contributing significantly to revenue[132] - The company is engaged in numerous clinical development programs, particularly in hematology and oncology, which may lead to new product approvals[131] - MONJUVI (tafasitamab) received FDA approval based on a 55% overall response rate in the L-MIND study for relapsed or refractory diffuse large B-cell lymphoma (DLBCL) [154] - PEMAZYRE received FDA approval for treating adults with unresectable locally advanced or metastatic cholangiocarcinoma, showing an overall response rate of 36% and a median duration of response of 9.1 months in the FIGHT-202 study[164] - Axatilimab demonstrated a 74% overall response rate in the AGAVE-201 trial for chronic GVHD, with 60% of responders maintaining their response after one year[176] - The FDA granted fast-track designation to axatilimab for chronic GVHD treatment after failure of two or more lines of systemic therapy[175] - INCA33989, an investigational monoclonal antibody targeting mutant CALR, is in Phase 1 study as of July 2023, addressing a significant unmet need in myelofibrosis and essential thrombocythemia[177] - INCB160058, a selective JAK2 inhibitor, is set to enter Phase 1 study in Q1 2024, targeting the JAK2V617F mutation found in 55% of primary myelofibrosis patients[178] - Retifanlimab received positive topline results from Phase 3 studies in squamous cell anal carcinoma and non-small cell lung cancer, meeting primary endpoints for progression-free survival and overall survival respectively[184] - The ongoing FIGHT-302 Phase 3 trial is evaluating pemigatinib for first-line treatment of cholangiocarcinoma with FGFR2 fusions or rearrangements[182] - A Phase 2 study of ruxolitinib cream in Hidradenitis Suppurativa met its primary efficacy endpoint, with a Phase 3 study expected to initiate in 2025[209] - INCA33890, a TGFβR2xPD-1 bispecific antibody, is currently in a Phase 1 study for advanced solid tumors, with data expected in 2025[193] Financial Performance - The company recorded a net loss of $444.6 million for Q2 2024, compared to a net income of $203.5 million in Q2 2023, resulting in a basic and diluted net loss per share of $2.04[262] - For the first half of 2024, the company reported a net loss of $275.1 million, contrasting with a net income of $225.3 million in the same period of 2023, with a basic and diluted net loss per share of $1.24[262] - JAKAFI net product revenues for Q2 2024 were $706.0 million, a 3.4% increase from $682.4 million in Q2 2023, driven by a volume increase of $17.2 million and a price increase of $6.4 million[264] - OPZELURA net product revenues for Q2 2024 reached $121.7 million, up 51.7% from $80.2 million in Q2 2023, with a volume increase of $36.4 million and a price increase of $5.1 million[265] - Total product revenues for the six months ended June 30, 2024, were $1,636.5 million, compared to $1,520.3 million for the same period in 2023, reflecting an increase of 7.6%[264] - MINJUVI/MONJUVI revenues for Q2 2024 were $31.1 million, significantly up from $13.2 million in Q2 2023, attributed to the acquisition completed in February 2024[266] - Total revenues for Q2 2024 were $1,043.8 million, a 9.3% increase from $954.6 million in Q2 2023[264] - Research and development expenses for Q2 2024 totaled $1,138.4 million, a substantial increase from $400.8 million in Q2 2023, primarily due to the Escient acquisition[276] Strategic Focus and Risks - The company reported a focus on expanding operations outside the United States, indicating potential growth in international markets[118] - The company relies heavily on JAKAFI/JAKAVI for revenue, highlighting the risk of revenue decline if market performance falters[126] - The company anticipates significant expenses related to drug discovery and development, which could impact future profitability[128] - The company faces risks related to competition and regulatory approvals that could affect its ability to commercialize drug candidates[120] - The company is subject to various risks including litigation costs, patent maintenance, and market competition that could impact financial results[120] - The company emphasizes the importance of maintaining effective sales and marketing capabilities to successfully commercialize its products[126] Collaboration and Market Access - The company is exploring collaboration agreements to enhance its drug development capabilities and market reach[118] - The company has established a collaboration with China Medical Systems Holdings Limited for the development and commercialization of povorcitinib, a selective oral JAK1 inhibitor, in several Asian markets[252] - The company retains all development and commercialization rights to JAKAFI in the United States, with patents expiring in mid and late 2028[152] - Ruxolitinib (JAKAVI) was approved in Europe and Japan for treating acute and chronic graft-versus-host disease (GVHD) in patients aged 12 years and older who have inadequate response to corticosteroids[245] Regulatory and Compliance - The company is evaluating the impact of new accounting standards on its financial statements, including ASU No. 2023-07 and ASU No. 2023-09, which focus on segment reporting and income tax disclosures, respectively[259][260] - The company is currently assessing the implications of SEC regulations requiring climate-related disclosures, effective for large accelerated filers starting in fiscal year 2025[261]

Financial Data and Key Metrics - Total revenue grew 9% YoY to $1.4 billion in Q2 2024, driven by strong performance of Jakafi and Opzelura [10][48] - Net product revenue for Jakafi reached $706 million, up 3% YoY, with paid demand increasing 9% [13][49] - Opzelura net product revenue surged 52% YoY to $122 million, driven by growth in atopic dermatitis and vitiligo [15][54] - Royalty revenues increased 8% YoY to $137 million, primarily due to accelerated demand for Jakafi [53] Business Line Performance - Jakafi maintained leadership in myelofibrosis (MF) with stable discontinuation rates and strong demand growth in polycythemia vera (PV) and graft-versus-host disease (GVHD) [14] - Opzelura saw a 34% YoY increase in U.S. total prescriptions and a 50% YoY increase in refills, with improved access in Southern commercial plans driving sales [15] - Opzelura achieved reimbursement in key European markets (Germany, France, Italy, and Spain), contributing $11 million in Q2 net sales [16][17] Market Performance - Jakafi's unit growth remained strong across indications, with PV and GVHD showing the largest growth [14] - Opzelura's European market penetration is expected to grow, with Spain and Italy contributing to revenue starting in Q3 2024 [16] - The U.S. market for Opzelura continues to expand, with a 60-40 split between atopic dermatitis and vitiligo prescriptions [120] Strategic Direction and Industry Competition - The company completed a $2 billion share repurchase, reflecting confidence in its clinical pipeline and commercial business [11][58] - The acquisition of Escient Pharmaceuticals added two first-in-class medicines to the inflammatory and autoimmune (IAI) portfolio [10][29] - The company is focusing on high-potential programs, discontinuing less promising ones like TIM-3, LAG-3, and oral PD-L1 programs [12][20] - The pipeline transformation includes advancing 12 new molecular entities and targeting over 10 high-impact launches by 2030 [21] Management Commentary on Operating Environment and Future Outlook - Management highlighted strong demand for Jakafi and Opzelura, with raised guidance for Jakafi net revenue to $2.71-$2.75 billion for 2024 [13][59] - The company expects continued growth in Opzelura, particularly with pediatric atopic dermatitis approval anticipated in 2025 [24][121] - Management expressed confidence in the pipeline's ability to offset Jakafi's eventual loss of exclusivity (LOE) and drive future growth [132][133] Other Key Information - R&D expenses for Q2 were $1.14 billion, including $691 million related to the Escient acquisition [55][57] - SG&A expenses increased 8% YoY to $306 million, driven by Escient-related costs [51] - The company ended Q2 with $1.5 billion in cash and no debt, providing flexibility for further business development [105] Q&A Session Summary Question: Pipeline Restructuring and Retifanlimab Impact - The pipeline restructuring was driven by data review and competitive landscape, not influenced by retifanlimab Phase III results [64][65] Question: Jakafi Market Share and Competition - Jakafi continues to grow in MF, PV, and GVHD, with minimal impact from competitors like pacritinib and momelotinib, which are primarily used in second-line settings [67][69] Question: CDK2 Inhibitor Development - The CDK2 inhibitor program is focused on ovarian cancer, with data expected at ESMO in September 2024, supporting further development [71][77] Question: MRGPRX4 Antagonist Benchmark - The MRGPRX4 antagonist program aims to meet or exceed benchmarks set by Mirum in pruritus control for PBC and PSC [93][94] Question: Share Repurchase and Business Development - The $2 billion share repurchase reflects confidence in the company's outlook, with remaining capacity for opportunistic business development [103][104] Question: Opzelura Formulary Placements - Preferred formulary placements in 2024 significantly contributed to Opzelura's growth, with plans to improve access further in 2025 [107][111] Question: Tafasitamab Market Opportunity - Tafasitamab's market opportunity includes follicular lymphoma and frontline DLBCL, with potential to add hundreds of millions in revenue [112][115] Question: Jakafi XR Program and CALR/JAK2 Selective Programs - Jakafi XR pivotal bioequivalence data is expected in early 2025, with approval targeted for 2026 [124] - CALR and JAK2 selective programs are in early stages, with potential for disease modification and new regulatory pathways [125] Question: Tafasitamab in Autoimmune Diseases - The company is evaluating tafasitamab's potential in autoimmune diseases, with an update expected later in 2024 [127][129] Question: Pipeline's Ability to Offset Jakafi LOE - The company's pipeline, including 12 new molecular entities and 10 planned launches, is expected to more than compensate for Jakafi's LOE [131][133]

Incyte Corporation (INCY) reported second-quarter 2024 adjusted loss of $1.82 per share against the Zacks Consensus Estimate of earnings of 78 cents. The company had recorded earnings of 99 cents per share in the year-ago quarter. Quarter in Detail Opzelura (ruxolitinib) cream generated $121.7 million in sales, which rose 52% year over year and surpassed the Zacks Consensus Estimate of $114 million. The year-over-year rise in sales was driven by patient demand, refills and expansion in payer coverage in bot ...

This quarterly report represents an earnings surprise of -333.33%. A quarter ago, it was expected that this specialty drugmaker would post earnings of $0.88 per share when it actually produced earnings of $0.64, delivering a surprise of -27.27%. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. While Incyte has underperformed the market so far this year, the qu ...

Financial Performance - Total revenues for Q2 2024 reached $1,044 million, representing a 9% year-over-year growth[6] - Total GAAP revenues for Q2 2024 were $1,043,759 thousand, a 9% increase from $954,610 thousand in Q2 2023[24] - Product revenues, net for Q2 2024 were $906,566, up 9.6% from $827,005 in Q2 2023[64] - Total net product and royalty revenues for the first half of 2024 were $1,899,648 thousand, an 8% increase from $1,763,283 thousand in the same period of 2023[24] - Net loss for Q2 2024 was $444,601, compared to a net income of $203,548 in Q2 2023[67] - Non-GAAP net loss for Q2 2024 was $396,132, while in Q2 2023, it was a net income of $223,029[67] - Basic net loss per share for Q2 2024 was $(2.04), compared to earnings of $0.91 per share in Q2 2023[67] Product Revenues - Jakafi (ruxolitinib) net product revenues were $706 million in Q2 2024, up 3% year-over-year, with total patients increasing by 7% year-over-year[6] - Opzelura (ruxolitinib) net product revenues were $122 million in Q2 2024, reflecting a 52% year-over-year increase, driven by strong uptake in atopic dermatitis and vitiligo[6] - Jakafi net product revenue increased by 3% to $705,973 thousand, driven by a 9% increase in paid demand[25] - Opzelura net product revenue surged 52% to $121,695 thousand, attributed to growth in new patient starts and refills[25] - Minjuvi/Monjuvi net product revenue rose 136% to $31,116 thousand following the acquisition of exclusive global rights to tafasitamab[25] Guidance and Expectations - The company raised its full-year 2024 revenue guidance to a range of $2,710 - $2,750 million[6] - Jakafi net product revenues are projected to be between $2,710 million and $2,750 million, an increase from the previous guidance of $2,690 million to $2,750 million[36] - GAAP research and development expenses are expected to be between $1,755 million and $1,800 million, up from the previous range of $1,720 million to $1,760 million[36] - Non-GAAP research and development expenses are projected to be between $1,615 million and $1,655 million, compared to the previous range of $1,580 million to $1,615 million[36] - The company maintains its guidance for other hematology/oncology net product revenues, which remains unchanged at $325 million to $360 million[36] - GAAP selling, general and administrative expenses remain unchanged at $1,210 million to $1,240 million[36] Share Repurchase and Financial Position - Incyte completed a $2.0 billion share repurchase in Q2 2024, representing approximately 14.8% of total outstanding shares[10] - In June 2024, the company completed a $2.0 billion share repurchase, acquiring approximately 33.3 million shares at $60.00 per share[34] - Cash, cash equivalents, and marketable securities decreased to $1.4 billion as of June 30, 2024, down from $3.7 billion at the end of 2023[33] - Total assets declined to $4,661,803 as of June 30, 2024, from $6,782,107 at the end of 2023[66] - Stockholders' equity fell to $2,997,059 as of June 30, 2024, down from $5,189,837 at the end of 2023[66] Research and Development - GAAP research and development expenses increased 184% to $1,138,380 thousand, primarily due to $679.4 million related to the Escient acquisition[28] - Ongoing clinical trials include combination studies of ruxolitinib with zilurgisertib and BETi, with updates expected later this year[10] - Incyte announced a strategic review of its pipeline, focusing on high-impact clinical programs, including povorcitinib and MRGPRX2/4 acquired from Escient Pharmaceuticals[7] - Positive topline results were reported from two Phase 3 studies of retifanlimab in squamous cell anal carcinoma and non-small cell lung cancer, meeting primary endpoints[10] - The company has established a strong portfolio of first-in-class medicines and a robust pipeline in oncology and inflammation & autoimmunity[40] - Incyte's pipeline includes several promising candidates, including ruxolitinib cream and povorcitinib, with ongoing clinical trials expected to yield significant data[60] Market Expansion - The company achieved full reimbursement for Opzelura in Spain, Italy, and France, expanding its market presence in Europe[10] - Paid demand for Jakafi increased by 9% year-over-year in Q2 2024, with growth across all indications[10] - The company anticipates strong demand for Opzelura, with expectations regarding reimbursement in Europe[60] - Incyte is focused on delivering sustainable innovation through 2028 and beyond, with expectations for continued performance and growth[60]

Core Viewpoint - Incyte Corporation (INCY) is expected to exceed expectations in its second-quarter 2024 results, scheduled for release on July 30, before the market opens [1] Revenue Sources - Incyte primarily generates product revenues from its lead drug, Jakafi (ruxolitinib), in the United States and other marketed drugs [2] - The company earns product royalty revenues from Novartis AG (NVS) for the commercialization of Jakafi in markets outside the U.S. [3] - Incyte also receives royalties from Tabrecta (capmatinib), which is approved for treating metastatic non-small cell lung cancer, with Novartis holding exclusive worldwide rights for its development and commercialization [4] Sales Estimates - The Zacks Consensus Estimate for Jakafi's sales in Q2 2024 is projected at $673 million [7] - Opzelura sales are estimated at $112 million for the same quarter, driven by increasing patient demand and payer coverage [5] - Sales estimates for other drugs include Iclusig at $30.12 million, Minjuvi at $27.49 million, and Pemazyre at $20.62 million [23] Recent Developments - In February 2024, Incyte entered into an asset purchase agreement with MorphoSys AG, acquiring exclusive global rights for tafasitamab, marketed as Monjuvi in the U.S. and Minjuvi outside the country [10] - Incremental sales from newly approved drugs like Opzelura and Zynyz are expected to contribute positively to Incyte's revenues in the upcoming quarter [22] Earnings Performance - Incyte has a mixed earnings surprise history, beating estimates in two of the last four quarters and missing in the other two, with an average negative earnings surprise of 6.24% [12] - The company's Earnings ESP is +7.41%, with the most accurate estimate at $1.25 compared to the Zacks Consensus Estimate of $1.16 [24] Market Performance - Incyte's shares have increased by 4.8% year-to-date, contrasting with a 2% decline in the industry [21] - The company is expected to benefit from higher royalties from Novartis due to increased Jakavi sales in international markets [20]

Incyte (INCY) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. This specialty drugmaker is expected to post quarterly earnings of $1.16 per share in its upcoming report, which represents a year-over-year change of ...

Right now, Incyte is sporting a Zacks Rank of #2 (Buy), while Myriad Genetics has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that INCY is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors. INCY currently has a forward P/E ratio of 14.82, while MYGN has a forward P/E of 824.48. We also note that INCY has a PEG ...