Incyte(US:INCY)2023-10-31 16:23Financial Data and Key Metrics Changes - Total product revenues for Q3 2023 were $783 million, representing a 10% year-over-year increase, while total product revenues for the first nine months of 2023 were $2.3 billion, reflecting a 16% year-over-year increase [56] - Jakafi net product revenues were $636 million for Q3 and $1.9 billion for the first nine months of 2023, with an 8% growth compared to the same period last year [15][27] - Opzelura net product revenues for Q3 were $92 million, a 141% increase year-over-year, with total revenues for the first nine months reaching $229 million [57][27] Business Line Data and Key Metrics Changes - Jakafi experienced steady demand growth, with total patients growing 8% year-over-year across all indications [30] - Opzelura's growth was driven by new patient flow and refills, with total prescriptions growing 72% year-over-year and refills increasing by 19% compared to the prior quarter [46][13] - The gross-to-net for Opzelura in Q3 was 54%, down from 55% in Q2 and 60% in Q1, with expectations to remain around the 55% level [16] Market Data and Key Metrics Changes - Approximately 84% commercial coverage for Opzelura in atopic dermatitis, covering over 127 million lives, and significant progress in vitiligo coverage, improving by roughly 30% throughout 2023 [76] - The anticipated preferred brand status for Opzelura on CVS Caremark and Aetna formularies starting in 2024 is expected to benefit around 30 million commercial lives [28] Company Strategy and Development Direction - The company is focusing on eight high-potential programs to increase decision-making rigor, accelerate pipeline progression, and optimize resource allocation [48] - The introduction of a novel program targeting the JAK2V617F mutation is expected to solidify the company's leadership in myeloproliferative neoplasms [49][50] - The company plans to initiate a Phase III study for povorcitinib in 2024, following positive Phase II results [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term potential of Opzelura, citing strong uptake and positive momentum [13] - The company expects Jakafi to continue being a leader in myelofibrosis, particularly with new data showing a 44% reduction in the risk of major thrombosis for patients switched to Jakafi [45] - Management highlighted the importance of early intervention for patients with polycythemia vera (PV) and the potential for increased market penetration [21] Other Important Information - Total R&D expenses for Q3 were $376 million, a 2% year-over-year decrease, while total SG&A expenses were $268 million, representing a 1% year-over-year growth [87] - The company reported a $14 million negative impact on reported net sales due to a decrease in inventory levels during Q3 [86] Q&A Session Summary Question: How is the company thinking about the competitive landscape regarding Jakafi and the new approval for momelotinib? - Management noted that Jakafi remains the only drug with superior overall survival in myelofibrosis patients, despite the presence of other JAK inhibitors [65] Question: Can you provide insight on Opzelura's gross-to-net trends and any pricing concessions? - Management indicated that while there are negotiations with payers, the goal is to increase volume and access for patients, with expected improvements in copays [68] Question: What is the expected rate of tubes per patient for atopic dermatitis and vitiligo? - The company expects around two tubes per patient for atopic dermatitis, while more data is needed for vitiligo [95] Question: Can you discuss the Medicaid penetration for Opzelura? - Medicaid patients account for about 14% of paid patients, with good coverage across all states [128]