Incyte(INCY) ZACKS·2024-11-28 17:35Core 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 1.12, and down from 1.14 billion, reflecting a year-over-year growth of 23.8%, surpassing the Zacks Consensus Estimate 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 139.3 million, up 52% year over year, surpassing the Zacks Consensus Estimate of 0.69 million in sales, while Iclusig and Pemazyre reported revenues of 20.7 million (down 9%), respectively [6]. Royalty Revenues - Jakavi royalty revenues from Novartis increased by 20% to 104.7 million [8]. - Royalty revenues from Tabrecta sales were 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 277.3 million, up 15% from the prior year [12]. - Incyte raised its 2024 revenue guidance for Jakafi to a range of 2.77 billion, and adjusted R&D expenses are now expected to be between 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].