Why Is Incyte (INCY) Up 2.1% Since Last Earnings Report?

Core Viewpoint - Incyte's recent earnings report showed mixed results, with adjusted earnings missing estimates but total revenues exceeding expectations, driven by strong sales of its lead drug Jakafi and the newly launched Opzelura cream [2][3]. Financial Performance - Adjusted earnings for Q3 2024 were $1.07 per share, missing the Zacks Consensus Estimate of $1.12, and down from $1.10 per share in the same quarter last year [2]. - Total revenues reached $1.14 billion, reflecting a year-over-year growth of 23.8%, surpassing the Zacks Consensus Estimate of $1.09 billion [3]. Product Sales Breakdown - Jakafi generated revenues of $741.2 million, a 16% increase from the previous year, driven by a 10% rise in total demand, and exceeded the Zacks Consensus Estimate of $717.5 million [4]. - Opzelura cream sales amounted to $139.3 million, up 52% year over year, surpassing the Zacks Consensus Estimate of $130.8 million, attributed to growth in new patient starts and refills [5]. - Zynyz, a newly approved drug, generated $0.69 million in sales, while Iclusig and Pemazyre reported revenues of $29.7 million (up 7%) and $20.7 million (down 9%), respectively [6]. Royalty Revenues - Jakavi royalty revenues from Novartis increased by 20% to $115.7 million, beating the Zacks Consensus Estimate of $104.7 million [8]. - Royalty revenues from Tabrecta sales were $5.9 million, up 43% year over year [9]. - Olumiant's product royalty revenues totaled $34.8 million, a 17% increase, but missed the Zacks Consensus Estimate of $35.2 million [10]. Expenses and Guidance - Adjusted R&D expenses rose to $525.3 million, a 51% increase year over year, primarily due to a $100 million milestone payment [11]. - Adjusted selling, general, and administrative expenses were $277.3 million, up 15% from the prior year [12]. - Incyte raised its 2024 revenue guidance for Jakafi to a range of $2.74-$2.77 billion, and adjusted R&D expenses are now expected to be between $2.395-$2.435 billion [13]. Recent Developments - In August 2024, Incyte and Syndax Pharmaceuticals received FDA approval for axatilimab-csfr, branded as Niktimvo, for chronic graft-versus-host disease [14]. Market Position and Outlook - Incyte's stock has seen a downward trend in estimates, with a consensus estimate shift of -6.38% [15][16]. - The company holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [18]. - Incyte operates within the Zacks Medical - Biomedical and Genetics industry, where competitor Alkermes has shown an 11.4% gain over the past month [19].