Incyte(US:INCY)2022-08-02 15:49Financial Data and Key Metrics Changes - In Q2 2022, revenues increased by 29% year-over-year, reaching $911 million [7] - JAKAFI net sales grew by 13% to $598 million, driven by new patient starts across all indications [7] - Total product revenues were $664 million, a 15% increase over Q2 2021 [36] - Total revenues for the quarter grew to $911 million, a 29% increase over the prior year, including $130 million in milestone revenues [37] Business Line Data and Key Metrics Changes - OPZELURA recorded gross product sales of $89 million in Q2, with net product sales of $17 million after a decrease in the gross to net discount rate from 86% to 81% [38] - Monjuvi net product sales in the U.S. grew to $23 million, while Minjuvi net sales were $4 million [27] - PEMAZYRE worldwide net sales were $19 million, with ongoing launches in Europe and Japan [27] Market Data and Key Metrics Changes - The approval of OPZELURA for vitiligo was a significant milestone, generating excitement in the dermatology community [10] - JAKAFI's patient demand grew across all indications, with GVHD patient growth of 18% year-over-year [26] - The percentage of covered claims for OPZELURA rose from the mid-20% range at the end of June to nearly 55% [18] Company Strategy and Development Direction - The company is focusing on expanding the use of OPZELURA in dermatology, with a comprehensive marketing campaign for its launch in vitiligo [22] - The strategy includes leveraging existing physician relationships and enhancing patient adherence through tools like a new Vitiligo app [24] - The company aims to maintain a gross to net discount rate of 40% to 50% by the end of the year [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming temporary delays in prescription filling due to the transition from free drug programs to paid prescriptions [44] - The company anticipates continued growth in demand for OPZELURA and JAKAFI, supported by strong patient satisfaction and physician engagement [15][26] - Management highlighted the importance of educating patients about the gradual onset of effects for OPZELURA in vitiligo [46] Other Important Information - The company ended the quarter with $2.7 billion in cash and marketable securities [40] - The ongoing R&D expenses for Q2 were $344 million, reflecting continued investment in late-stage development assets [40] Q&A Session Summary Question: Concerns about OPZELURA revenue and organic demand - Management clarified that the revenue decline was primarily due to gross to net dynamics and not a decrease in organic demand, with recent demand trends showing improvement [44] Question: Guidance on gross to net discount rate - Management indicated that achieving a 40% to 50% gross to net discount rate by year-end depends on the removal of NDC blocks and continued demand growth [50][62] Question: Comparison of OPZELURA's launch to previous products - Management noted that while the patient population for vitiligo is smaller than for atopic dermatitis, there is significant demand and excitement from advocacy groups [54] Question: Insights on formularies and prior authorizations - Management acknowledged that prior authorizations are common in the dermatology space and that they are working to streamline the process for pharmacies [60] Question: Confidence in prescription data and demand growth - Management expressed confidence in their prescription data and indicated that demand for OPZELURA is expected to continue growing, despite some initial misalignments in reported data [91]