• Total FY'23 net product and royalty revenues of $3.7 billion (+14% Y/Y); total FY'23 net product revenues of $3.2 billion (+15% Y/Y)
  • Jakafi® (ruxolitinib) net revenues of $2.6 billion (+8%) for FY'23; Jakafi net revenues guidance range of $2,690 - $2,750 million for FY 2024
  • Opzelura® (ruxolitinib) cream net revenues of $109 million in Q4'23 and $338 million for FY'23, driven by strong demand in atopic dermatitis and the successful launch in vitiligo
  • Advancing high potential pipeline provides opportunity for over 10 new launches by 2030
  • Incyte to host an in-person and webcast investor event on Monday, March 11, 2024 from 9:00-10:30 a.m. PT to discuss key data presentations across its dermatology pipeline at the 2024 AAD Annual Meeting in San Diego, CA

Conference Call and Webcast Scheduled Today at 8:00 a.m. ET

Incyte (Nasdaq:INCY) today reports 2023 fourth quarter financial results, provides 2024 financial guidance and provides a status update on the Company’s research and development portfolio.

"We delivered a strong 2023 with total net product and royalty revenues of $3.7 billion, increasing 14% versus 2022. In the fourth quarter, we achieved for the first time, a new milestone of $1 billion in total quarterly revenues, driven by the continued growth of Jakafi® (ruxolitinib) and the successful launch of Opzelura® (ruxolitinib) cream," said Hervé Hoppenot, Chief Executive Officer, Incyte. "Throughout 2023, we focused our R&D efforts on high potential programs and believe we are positioned to deliver more than ten high impact launches by 2030."

Key Product Sales Performance

Jakafi:

Net product revenues for the fourth quarter of 2023 of $695 million; 2023 full year net product revenues of $2.59 billion

  • Fourth quarter 2023 net product revenues grew 7% compared with the fourth quarter of 2022 and grew 8% for the full year 2023 when compared to 2022.
  • Fourth quarter revenues were negatively impacted by an increase in the number of Medicare Part D patients receiving free product and were positively impacted by an increase in channel inventory.

Opzelura:

Net product revenues for the fourth quarter of 2023 of $109 million; 2023 full year net product revenues of $338 million:

  • Net product revenues of $109 million grew 78% compared with the fourth quarter of 2022, driven by growth in patient demand, refills and expansion in payer coverage as the launch in atopic dermatitis (AD) and vitiligo continues. For the full-year, 2023 net product revenues grew 162% over the prior year to $338 million.
  • On January 31, 2024, Incyte received approval in France to promote and distribute Opzelura for vitiligo under a process called “Accès Direct.” This process is intended to allow for early access to a therapy while a final price is negotiated, which is expected to take up to twelve months. Once price reimbursement is determined, Incyte will begin recognizing revenue in France.

Key Recent Updates

  • In February 2024, Incyte entered into an asset purchase agreement with MorphoSys AG which gave Incyte exclusive global rights for tafasitamab, a humanized Fc-modified CD19-targeting immunotherapy marketed in the U.S. as Monjuvi® (tafasitamab-cxix) and outside of the U.S. as Minjuvi® (tafasitamab). Under the terms of the agreement, MorphoSys received a payment of $25 million from Incyte, and Incyte gained global development and commercialization rights for tafasitamab. Incyte will recognize revenue and cost for all U.S. commercialization and clinical development and MorphoSys will no longer be eligible to receive future milestone, profit split and royalty payments.
  • In January 2024, Incyte announced the primary endpoint was met in its randomized, placebo-controlled, Phase 2 study evaluating the safety and efficacy of ruxolitinib cream (Opzelura®) in adults with mild/moderate hidradenitis suppurativa (HS). At Week 16, patients receiving ruxolitinib cream 1.5% twice daily (BID) had significantly greater decreases from baseline versus placebo in total abscess and inflammatory nodule (AN) count, the primary endpoint of the study. The overall safety profile of ruxolitinib cream was consistent with previous data, and no new safety signals were observed. The Phase 2 data is anticipated to be presented at an upcoming scientific meeting in 2024. A Phase 3 study is currently being evaluated.
  • In January 2024, Incyte highlighted promising early clinical efficacy data for its selective inhibitor of CDK2 (INCB123667), which demonstrated its potential use as monotherapy or combination therapy for late-stage cancers. In a Phase 1 study of INCB123667, early clinical activity was observed with several partial responses (PR) achieved in patients with amplification/over expression of CCNE1, a cell cycle regulator and potential predictive biomarker. Tumor shrinkage was observed across multiple tumor types, including CCNE1 patients with ovarian cancer. The safety profile of for INCB123667 aligns with the mechanism of action. Additional data is expected to be presented in 2024.
  • In December 2023, in collaboration with Syndax Pharmaceuticals, the Biologics License Application (BLA) was submitted for axatilimab in chronic graft-versus-host disease (cGVHD) with approval anticipated in the second half of 2024. Plans are underway to initiate two combination trials with axatilimab in cGVHD in mid-2024, including a Phase 2 combination trial with ruxolitinib and a Phase 3 combination trial with steroids.
  • JAK2V617Fi (INCB160058), a potent and selective JAK2 pseudokinase domain binder, cleared the Investigational New Drug (IND) process with the FDA and a Phase 1 study is anticipated to initiate in the first half of 2024. INCB160058 has the potential to be a disease modifying therapy and to address a significant patient population. The JAK2 mutation is found in 55% of primary myelofibrosis, 95% of polycythemia vera and 60% of essential thrombocythemia patients.
  • A Phase 1 study of KRASG12D (INCB161734) in patients with advanced metastatic solid tumors with a KRAS G12D mutation was recently initiated and the first patient was dosed. KRAS mutations are one of the most common genetic abnormalities in cancer, especially pancreatic and colorectal cancers.
  • In December 2023, Incyte received FDA feedback and agreed to the path forward for once daily (QD) ruxolitinib (XR). The potential approval of QD ruxolitinib (XR) is anticipated in approximately two years.

Additional Pipeline Updates

Myeloproliferative Neoplasms (MPNs) and Graft-Versus-Host Disease (GVHD) – key highlights

  • In December 2023, Incyte presented more than 40 hematology and oncology abstracts including a Plenary Scientific Session at the 2023 ASH Annual Meeting. The plenary presentation featured the full data from AGAVE-201 evaluating axatilimab, an anti-CSFR-1R monoclonal antibody, in patients with cGVHD. Other key highlights included additional data from the Phase 1/2 Study of zilurgisertib (INCB000928), Phase 1 data of BETi (INCB057643) and preclinical data of JAK2V617Fi (INCB160058).
  • Combination trials of ruxolitinib twice daily (BID) with zilurgisertib (INCB000928) and BETi (INCB057643) are ongoing and continue to enroll. Incyte anticipates initiating a Phase 3 study for BETi in the second half of 2024 and achieving clinical proof-of-concept for zilurgisertib by mid-2024.
  • The Phase 1 study evaluating the mCALR monoclonal antibody (INCA033989) is ongoing and enrolling patients.

MPN and GVHD Programs

 

Indication and Phase

Ruxolitinib XR (QD)

(JAK1/JAK2)

 

Myelofibrosis, polycythemia vera and GVHD

Ruxolitinib + zilurgisertib

JAK1/JAK2 + ALK2)

 

Myelofibrosis: Phase 2

Ruxolitinib + INCB57643

(JAK1/JAK2 + BET)

 

Myelofibrosis: Phase 2

Ruxolitinib + CK08041

(JAK1/JAK2 + CB-Tregs)

 

Myelofibrosis: Phase 1 (LIMBER-TREG108)

Axatilimab (anti-CSF-1R)2

 

Chronic GVHD: Pivotal Phase 2 (third-line plus therapy) (AGAVE-201); BLA under review in the U.S.

Ruxolitinib + axatilimab2

(JAK1/JAK2 + anti-CSF-1R)

 

Chronic GVHD: Phase 1/2 in preparation

INCA033989

(mCALR)

 

Myelofibrosis, essential thrombocythemia: Phase 1

INCB160058

(JAK2V617Fi)

 

Phase 1

1 Development collaboration with Cellenkos, Inc.

2 Clinical development of axatilimab in GVHD conducted in collaboration with Syndax Pharmaceuticals.

Other Hematology/Oncology – key highlights

CDK2i (INCB123667)

  • In January 2024, Incyte highlighted promising early clinical efficacy data for its selective small molecule inhibitor of CDK2 (INCB123667), which demonstrated its potential use as monotherapy or combination therapy for late-stage cancers. In a Phase 1 study of INCB123667, early clinical activity was observed with several partial responses (PR) achieved in patients with amplification/over expression of CCNE1, a cell cycle regulator and potential predictive biomarker. Tumor shrinkage was observed across multiple tumor types, including CCNE1+ patients with ovarian cancer. The safety profile of for INCB123667 aligns with the mechanism of action. Additional data is expected to be presented in 2024.

Oncology Programs

 

Indication and Phase

Pemigatinib (Pemazyre®)

(FGFR1/2/3)

 

Myeloid/lymphoid neoplasms (MLN): approved in the U.S. and Japan

Cholangiocarcinoma (CCA): Phase 3 (FIGHT-302)

Glioblastoma: Phase 2 (FIGHT-209)

Tafasitamab (Monjuvi®/Minjuvi®)

(CD19)

 

Relapsed or refractory diffuse large B-cell lymphoma (DLBCL): Phase 3 (B-MIND)

First-line DLBCL: Phase 3 (frontMIND)

Relapsed or refractory follicular lymphoma (FL) and relapsed or refractory marginal zone lymphoma (MZL): Phase 3 (inMIND)

Retifanlimab (Zynyz®)1

(PD-1)

 

Merkel cell carcinoma (MCC): approved in the U.S.

Squamous cell anal cancer (SCAC): Phase 3 (POD1UM-303)

Non-small cell lung cancer (NSCLC): Phase 3 (POD1UM-304)

MSI-high endometrial cancer: Phase 2 (POD1UM-101, POD1UM-204)

INCB99280

(Oral PD-L1)

 

Solid tumors (combination): Phase 1

Solid tumors (monotherapy): Phase 2

Cutaneous squamous cell carcinoma (cSCC): Phase 2

INCB99318

(Oral PD-L1)

 

Solid tumors: Phase 1

INCB123667

(CDK2i)

 

Solid tumors with Amplification/ Overexpression of CCNE1: Phase 1

INCB161734

(KRASG12D)

 

Advanced metastatic solid tumors with a KRAS G12D mutation: Phase 1

1 Retifanlimab licensed from MacroGenics.

Inflammation and Autoimmunity (IAI) – key highlights

Dermatology

Ruxolitinib Cream

  • Incyte announced the primary endpoint was met in its randomized, placebo-controlled, Phase 2 study evaluating the safety and efficacy of ruxolitinib cream (Opzelura®) in adults with mild/moderate HS. At Week 16, patients receiving ruxolitinib cream 1.5% twice daily (BID) had significantly greater decreases from baseline versus placebo in total abscess and inflammatory nodule (AN) count, the primary endpoint of the study. The overall safety profile of ruxolitinib cream is consistent with previous data, and no new safety signals were observed. The Phase 2 data is anticipated to be presented at an upcoming scientific meeting in 2024. A Phase 3 study is currently being evaluated.
  • Two Phase 2 studies in lichen planus and lichen sclerosus have completed enrollment. Two Phase 3 trials evaluating ruxolitinib cream in prurigo nodularis (PN) are ongoing.

Povorcitinib (INCB54707)

  • The Phase 2, randomized, double-blind, placebo-controlled, dose ranging study evaluating the efficacy and safety of povorcitinib in participants with PN met its primary endpoint. A Phase 3 study in PN is being planned.
  • Asthma and chronic spontaneous urticaria: Two Phase 2 trials in asthma and chronic spontaneous urticaria are enrolling.

IAI and Dermatology Programs

 

Indication and Phase

Ruxolitinib cream (Opzelura®)1

(JAK1/JAK2)

 

AD: Phase 3 pediatric study (TRuE-AD3)

Vitiligo: Approved in the U.S. and Europe

Lichen planus: Phase 2

Lichen sclerosus: Phase 2

Hidradenitis suppurativa: Phase 2; Phase 3 being evaluated

Prurigo nodularis: Phase 3 (TRuE-PN1, TRuE-PN2)

Ruxolitinib cream + UVB

(JAK1/JAK2 + phototherapy)

 

Vitiligo: Phase 2

Povorcitinib

(JAK1)

 

Hidradenitis suppurativa: Phase 3 (STOP-HS1, STOP-HS2)

Vitiligo: Phase 3 (STOP-V1, STOP-V2)

Prurigo nodularis: Phase 2; Phase 3 in planning

Asthma: Phase 2

Chronic spontaneous urticaria: Phase 2

INCA034460

(anti-IL-15Rβ)

 

Vitiligo: Phase 1 initiated

1 Novartis’ rights to ruxolitinib outside of the United States under our Collaboration and License Agreement with Novartis do not include topical administration.

Other

Other Program

 

Indication and Phase

Zilurgisertib

(ALK2)

 

Fibrodysplasia ossificans progressiva: Pivotal Phase 2

Discovery and other early development

Modality

 

Candidates

Monoclonal antibodies

 

INCAGN2385 (LAG-3)1, INCAGN2390 (TIM-3)1

Bi-specific antibodies

 

INCA32459 (LAG-3xPD-1)2, INCA33890 (TGFβR2xPD-1)2

1 Discovery collaboration with Agenus.

2 Development in collaboration with Merus.

Partnered

Partnered Programs

 

Indication and Phase

Ruxolitinib (Jakavi®)1

(JAK1/JAK2)

 

Acute and chronic GVHD: Approved in Europe and Japan

Baricitinib (Olumiant®)2

(JAK1/JAK2)

 

AD: Approved in Europe and Japan

Severe alopecia areata (AA): Approved in the U.S., Europe and Japan

Capmatinib (Tabrecta®)3

(MET)

 

NSCLC (with MET exon 14 skipping mutations): Approved in the U.S., Europe and Japan

1 Ruxolitinib (Jakavi®) licensed to Novartis ex-U.S. for use in hematology and oncology excluding topical administration.

2 Baricitinib (Olumiant®) licensed to Lilly: approved as Olumiant in multiple territories globally for certain patients with moderate-to-severe rheumatoid arthritis; approved as Olumiant in EU and Japan for certain patients with atopic dermatitis.

3 Capmatinib (Tabrecta®) licensed to Novartis.

2023 Fourth Quarter and Year-end Financial Results

The financial measures presented in this press release for the quarter and year ended December 31, 2023 and 2022 have been prepared by the Company in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), unless otherwise identified as a Non-GAAP financial measure. Management believes that Non-GAAP information is useful for investors, when considered in conjunction with Incyte’s GAAP disclosures. Management uses such information internally and externally for establishing budgets, operating goals and financial planning purposes. These metrics are also used to manage the Company’s business and monitor performance. The Company adjusts, where appropriate, for expenses in order to reflect the Company’s core operations. The Company believes these adjustments are useful to investors by providing an enhanced understanding of the financial performance of the Company’s core operations. The metrics have been adopted to align the Company with disclosures provided by industry peers.

Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used in conjunction with and to supplement Incyte’s operating results as reported under GAAP. Non-GAAP measures may be defined and calculated differently by other companies in our industry.

As changes in exchange rates are an important factor in understanding period-to-period comparisons, Management believes the presentation of certain revenue results on a constant currency basis in addition to reported results helps improve investors’ ability to understand its operating results and evaluate its performance in comparison to prior periods. Constant currency information compares results between periods as if exchange rates had remained constant period over period. The Company calculates constant currency by calculating current year results using prior year foreign currency exchange rates and generally refers to such amounts calculated on a constant currency basis as excluding the impact of foreign exchange or being on a constant currency basis. These results should be considered in addition to, not as a substitute for, results reported in accordance with GAAP. Results on a constant currency basis, as the Company presents them, may not be comparable to similarly titled measures used by other companies and are not measures of performance presented in accordance with GAAP.

Financial Highlights

Financial Highlights

(unaudited, in thousands, except per share amounts)

 

 

Three Months Ended

December 31,

 

Twelve Months Ended

December 31,

 

2023

 

2022

 

2023

 

2022

Total GAAP revenues

$

1,013,341

 

$

926,700

 

$

3,695,649

 

$

3,394,635

 

 

 

 

 

 

 

 

Total GAAP operating income

 

187,270

 

 

70,093

 

 

620,525

 

 

579,440

Total Non-GAAP operating income

 

267,702

 

 

152,503

 

 

892,783

 

 

801,545

 

 

 

 

 

 

 

 

GAAP provision for income taxes

 

69,877

 

 

52,154

 

 

236,616

 

 

188,456

 

 

 

 

 

 

 

 

GAAP net income

 

201,079

 

 

28,461

 

 

597,599

 

 

340,660

Non-GAAP net income

 

239,124

 

 

139,661

 

 

795,449

 

 

622,676

 

 

 

 

 

 

 

 

GAAP basic EPS

$

0.90

 

$

0.13

 

$

2.67

 

$

1.53

Non-GAAP basic EPS

$

1.07

 

$

0.63

 

$

3.56

 

$

2.80

GAAP diluted EPS

$

0.89

 

$

0.13

 

$

2.65

 

$

1.52

Non-GAAP diluted EPS

$

1.06

 

$

0.62

 

$

3.52

 

$

2.78

Revenue Details

Revenue Details

(unaudited, in thousands)

 

 

Three Months Ended

December 31,

 

%

Change

(as

reported)

 

%

Change

(constant

currency)1

 

Twelve Months Ended

December 31,

 

%

Change

(as

reported)

 

%

Change

(constant

currency)1

 

2023

 

2022

 

2023

 

2022

 

Net product revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jakafi

$

695,127

 

$

647,493

 

7

%

 

7

%

 

$

2,593,732

 

$

2,409,225

 

8

%

 

8

%

Opzelura

 

109,243

 

 

61,281

 

78

%

 

78

%

 

 

337,864

 

 

128,735

 

162

%

 

162

%

Iclusig

 

27,130

 

 

27,616

 

(2

%)

 

(6

%)

 

 

111,623

 

 

105,838

 

5

%

 

3

%

Pemazyre

 

20,653

 

 

23,016

 

(10

%)

 

(11

%)

 

 

83,642

 

 

83,445

 

%

 

1

%

Minjuvi

 

8,994

 

 

4,809

 

87

%

 

79

%

 

 

37,057

 

 

19,654

 

89

%

 

87

%

Zynyz

 

582

 

 

 

NM

 

 

NM

 

 

 

1,250

 

 

 

NM

 

 

NM

 

Total net product revenues

 

861,729

 

 

764,215

 

13

%

 

13

%

 

 

3,165,168

 

 

2,746,897

 

15

%

 

15

%

Royalty revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jakavi

 

103,892

 

 

91,189

 

14

%

 

14

%

 

 

367,583

 

 

331,575

 

11

%

 

12

%

Olumiant

 

40,359

 

 

35,858

 

13

%

 

12

%

 

 

136,138

 

 

134,547

 

1

%

 

4

%

Tabrecta

 

4,678

 

 

4,233

 

11

%

 

NA

 

 

 

17,793

 

 

15,411

 

15

%

 

NA

 

Pemazyre

 

683

 

 

1,205

 

NM

 

 

NM

 

 

 

1,967

 

 

1,205

 

NM

 

 

NM

 

Total royalty revenues

 

149,612

 

 

132,485

 

13

%

 

 

 

 

523,481

 

 

482,738

 

8

%

 

 

Total net product and royalty revenues

 

1,011,341

 

 

896,700

 

13

%

 

 

 

 

3,688,649

 

 

3,229,635

 

14

%

 

 

Milestone and contract revenues

 

2,000

 

 

30,000

 

(93

%)

 

(93

%)

 

 

7,000

 

 

165,000

 

(96

%)

 

(96

%)

Total GAAP revenues

$

1,013,341

 

$

926,700

 

9

%

 

 

 

$

3,695,649

 

$

3,394,635

 

9

%

 

 

NM = not meaningful

NA = not available

1 Percentage change in constant currency is calculated using 2022 foreign exchange rates to recalculate 2023 results.

Product and Royalty Revenues Product revenues and product and royalty revenues for the quarter ended December 31, 2023 both increased 13%, and product revenues and product and royalty revenues for the year ended December 31, 2023 increased 15% and 14%, respectively, over the prior year comparative periods, primarily driven by increases in Jakafi and Opzelura net product revenues. Jakafi fourth quarter revenues were negatively impacted by an increase in the number of Medicare Part D patients receiving free product and were positively impacted by an increase in channel inventory. Opzelura net product revenues for the quarter were $109 million, representing a 78% increase year-over-year driven by growth in new patient starts and refills. Olumiant royalties for the quarter were impacted by favorable changes in foreign currency exchange rates.

Operating Expenses

Operating Expense Summary

(unaudited, in thousands)

 

 

Three Months Ended

December 31,

 

%

Change

 

Twelve Months Ended

December 31,

 

%

Change

 

2023

 

2022

2023

 

2022

GAAP cost of product revenues

$

69,751

 

$

59,163

 

 

18

%

 

$

254,990

 

$

206,997

 

23

%

Non-GAAP cost of product revenues1

 

63,575

 

 

53,022

 

 

20

%

 

 

230,308

 

 

182,737

 

26

%

 

 

 

 

 

 

 

 

 

 

 

 

GAAP research and development

 

444,494

 

 

501,360

 

 

(11

%)

 

 

1,627,594

 

 

1,585,936

 

3

%

Non-GAAP research and development2

 

408,488

 

 

469,048

 

 

(13

%)

 

 

1,500,897

 

 

1,473,420

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

GAAP selling, general and administrative

 

293,865

 

 

272,819

 

 

8

%

 

 

1,161,293

 

 

1,002,140

 

16

%

Non-GAAP selling, general and administrative3

 

270,673

 

 

253,209

 

 

7

%

 

 

1,069,616

 

 

928,960

 

15

%

 

 

 

 

 

 

 

 

 

 

 

 

GAAP loss on change in fair value of acquisition-related contingent consideration

 

15,058

 

 

24,347

 

 

(38

%)

 

 

29,202

 

 

12,149

 

140

%

Non-GAAP loss on change in fair value of acquisition-related contingent consideration4

 

 

 

 

 

%

 

 

 

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

GAAP (profit) and loss sharing under collaboration agreements

 

2,903

 

 

(1,082

)

 

(368

%)

 

 

2,045

 

 

7,973

 

(74

%)

1 Non-GAAP cost of product revenues excludes the amortization of licensed intellectual property for Iclusig relating to the acquisition of the European business of ARIAD Pharmaceuticals, Inc. and the cost of stock-based compensation.

2 Non-GAAP research and development expenses exclude the cost of stock-based compensation.

3 Non-GAAP selling, general and administrative expenses exclude the cost of stock-based compensation and asset impairments.

4 Non-GAAP loss on change in fair value of acquisition-related contingent consideration is null.

Cost of product revenues GAAP and Non-GAAP cost of product revenues for the quarter ended December 31, 2023 increased 18% and 20%, respectively, and for the year ended December 31, 2023 increased 23% and 26% compared to the same periods in 2022 due to growth in net product revenues and inventory reserves for obsolescence.

Research and development expenses GAAP and Non-GAAP research and development expense for the quarter ended December 31, 2023 decreased 11% and 13%, respectively, and for the year ended December 31, 2023 increased 3% and 2%, respectively, compared to the same periods in 2022. The decrease for the quarter was primarily due to the $70 million upfront payment made as part of the Villaris asset acquisition during the fourth quarter of 2022, offset in part by the $20 million development milestone payment to former Villaris stockholders in the fourth quarter of 2023. The increase for the full year was primarily due to continued investment in our late stage development assets.

Selling, general and administrative expenses GAAP and Non-GAAP selling, general and administrative expenses for the quarter ended December 31, 2023 increased 8% and 7%, respectively, and for the year ended December 31, 2023 increased 16% and 15%, respectively, compared to the same periods in 2022, primarily due to expenses related to promotional activities to support the launch of Opzelura for the treatment of vitiligo.

Other Financial Information

Change in fair value of acquisition-related contingent consideration The change in fair value of contingent consideration during the quarter and year ended December 31, 2023, compared to the same periods in 2022, was due primarily to fluctuations in foreign currency exchange rates impacting future revenue projections of Iclusig.

Operating income GAAP and Non-GAAP operating income for the year ended December 31, 2023 increased 7% and 11%, respectively, compared to the same period in 2022, primarily driven by growth in product revenues.

Cash, cash equivalents and marketable securities position As of December 31, 2023 and 2022, cash, cash equivalents and marketable securities totaled $3.7 billion and $3.2 billion, respectively.

2024 Financial Guidance

Incyte's guidance includes revenues and expenses related to the recently announced acquisition of exclusive global rights to tafasitamab and excludes any potential impact related to the accounting treatment of the $25 million purchase price paid. Guidance does not include revenue from any potential new product launches or the impact of any potential future strategic transactions. Incyte’s guidance is summarized below.

 

Current

Jakafi net product revenues

$2,690 - $2,750 million

Other Hematology/Oncology net product revenues(1)

$325 - $360 million

GAAP Cost of product revenues

7 – 8% of net product revenues

Non-GAAP Cost of product revenues(2)

6 – 7% of net product revenues

GAAP Research and development expenses

$1,720 - $1,760 million

Non-GAAP Research and development expenses(3)

$1,580 - $1,615 million

GAAP Selling, general and administrative expenses

$1,210 - $1,240 million

Non-GAAP Selling, general and administrative expenses(3)

$1,115 - $1,140 million

 

1 Pemazyre in the U.S., EU and Japan; Monjuvi and Zynyz in the U.S.; and Iclusig and Minjuvi in the EU.

2 Adjusted to exclude the amortization of licensed intellectual property for Iclusig relating to the acquisition of the European business of ARIAD Pharmaceuticals, Inc. and the estimated cost of stock-based compensation.

3 Adjusted to exclude the estimated cost of stock-based compensation.

Conference Call and Webcast Information

Incyte will hold a conference call and webcast this morning at 8:00 a.m. ET. To access the conference call, please dial 877-407-3042 for domestic callers or 201-389-0864 for international callers. When prompted, provide the conference identification number, 13744020.

If you are unable to participate, a replay of the conference call will be available for 90 days. The replay dial-in number for the United States is 877-660-6853 and the dial-in number for international callers is 201-612-7415. To access the replay you will need the conference identification number, 13744020.

The conference call will also be webcast live and can be accessed at investor.incyte.com.

About Incyte

A global biopharmaceutical company on a mission to Solve On., Incyte follows the science to find solutions for patients with unmet medical needs. Through the discovery, development and commercialization of proprietary therapeutics, Incyte has established a portfolio of first-in-class medicines for patients and a strong pipeline of products in Oncology and Inflammation & Autoimmunity. Headquartered in Wilmington, Delaware, Incyte has operations in North America, Europe and Asia.

For additional information on Incyte, please visit Incyte.com or follow us on social media: LinkedIn, X, Instagram, Facebook, YouTube.

About Jakafi® (ruxolitinib)

Jakafi® (ruxolitinib) is a JAK1/JAK2 inhibitor approved by the U.S. FDA for treatment of polycythemia vera (PV) in adults who have had an inadequate response to or are intolerant of hydroxyurea; intermediate or high-risk myelofibrosis (MF), including primary MF, post-polycythemia vera MF and post-essential thrombocythemia MF in adults; steroid-refractory acute GVHD in adult and pediatric patients 12 years and older; and chronic GVHD after failure of one or two lines of systemic therapy in adult and pediatric patients 12 years and older.

Jakafi is a registered trademark of Incyte.

About Opzelura® (ruxolitinib) Cream 1.5%

Opzelura, a novel cream formulation of Incyte’s selective JAK1/JAK2 inhibitor ruxolitinib, approved by the U.S. Food & Drug Administration for the topical treatment of nonsegmental vitiligo in patients 12 years of age and older, is the first and only treatment for repigmentation approved for use in the United States. Opzelura is also approved in the U.S. for the topical short-term and non-continuous chronic treatment of mild to moderate atopic dermatitis (AD) in non-immunocompromised patients 12 years of age and older whose disease is not adequately controlled with topical prescription therapies, or when those therapies are not advisable. Use of Opzelura in combination with therapeutic biologics, other JAK inhibitors, or potent immunosuppressants, such as azathioprine or cyclosporine, is not recommended.

In Europe, Opzelura (ruxolitinib) cream 15mg/g is approved for the treatment of non-segmental vitiligo with facial involvement in adults and adolescents from 12 years of age.

Incyte has worldwide rights for the development and commercialization of ruxolitinib cream, marketed in the United States as Opzelura.

Opzelura and the Opzelura logo are registered trademarks of Incyte.

About Monjuvi®/Minjuvi® (tafasitamab)

Tafasitamab is a humanized Fc-modified CD19 targeting immunotherapy. Tafasitamab incorporates an XmAb® engineered Fc domain, which mediates B-cell lysis through apoptosis and immune effector mechanism including Antibody-Dependent Cell-Mediated Cytotoxicity (ADCC) and Antibody-Dependent Cellular Phagocytosis (ADCP).

In the United States, Monjuvi® (tafasitamab-cxix) is approved by the U.S. Food and Drug Administration in combination with lenalidomide for the treatment of adult patients with relapsed or refractory DLBCL not otherwise specified, including DLBCL arising from low grade lymphoma, and who are not eligible for autologous stem cell transplant (ASCT). This indication is approved under accelerated approval based on overall response rate. Continued approval for this indication may be contingent upon verification and description of clinical benefit in a confirmatory trial(s). Please see the U.S. full Prescribing Information for Monjuvi for important safety information.

In Europe, Minjuvi® (tafasitamab) received conditional marketing authorization in combination with lenalidomide, followed by Minjuvi® monotherapy, for the treatment of adult patients with relapsed or refractory diffuse large B-cell lymphoma (DLBCL) who are not eligible for autologous stem cell transplant (ASCT).

Tafasitamab is being clinically investigated as a therapeutic option in B-cell malignancies in several ongoing combination trials. Its safety and efficacy for these investigational uses have not been established in pivotal trials.

Minjuvi® and Monjuvi® are registered trademarks of Incyte. Tafasitamab is marketed by under the brand name Monjuvi® in the U.S., and under the brand name Minjuvi® in Europe and Canada.

Xencor is eligible to receive tiered royalties on global net sales of tafasitamab in the single-digit to sub-teen double-digit percentage range. XmAb® is a registered trademark of Xencor, Inc.

About Pemazyre® (pemigatinib)

Pemazyre is a kinase inhibitor indicated in the United States for the treatment of adults with previously treated, unresectable locally advanced or metastatic cholangiocarcinoma with a fibroblast growth factor receptor 2 (FGFR2) fusion or other rearrangement as detected by an FDA-approved test*. This indication is approved under accelerated approval based on overall response rate and duration of response. Continued approval for this indication may be contingent upon verification and description of clinical benefit in a confirmatory trial(s).

Pemazyre is also the first targeted treatment approved for use in the United States for treatment of adults with relapsed or refractory myeloid/lymphoid neoplasms (MLNs) with FGFR1 rearrangement.

In Japan, Pemazyre is approved for the treatment of patients with unresectable biliary tract cancer (BTC) with a fibroblast growth factor receptor 2 (FGFR2) fusion gene, worsening after cancer chemotherapy.

In Europe, Pemazyre is approved for the treatment of adults with locally advanced or metastatic cholangiocarcinoma with a fibroblast growth factor receptor 2 (FGFR2) fusion or rearrangement that have progressed after at least one prior line of systemic therapy.

Pemazyre is a potent, selective, oral inhibitor of FGFR isoforms 1, 2 and 3 which, in preclinical studies, has demonstrated selective pharmacologic activity against cancer cells with FGFR alterations.

Pemazyre is marketed by Incyte in the United States, Europe and Japan.

Pemazyre is a trademark of Incyte.

* Pemazyre® (pemigatinib) [Package Insert]. Wilmington, DE: Incyte; 2020.

About Iclusig® (ponatinib) tablets

Ponatinib (Iclusig®) targets not only native BCR-ABL but also its isoforms that carry mutations that confer resistance to treatment, including the T315I mutation, which has been associated with resistance to other approved TKIs.

In the EU, Iclusig is approved for the treatment of adult patients with chronic phase, accelerated phase or blast phase chronic myeloid leukemia (CML) who are resistant to dasatinib or nilotinib; who are intolerant to dasatinib or nilotinib and for whom subsequent treatment with imatinib is not clinically appropriate; or who have the T315I mutation, or the treatment of adult patients with Philadelphia-chromosome positive acute lymphoblastic leukemia (Ph+ ALL) who are resistant to dasatinib; who are intolerant to dasatinib and for whom subsequent treatment with imatinib is not clinically appropriate; or who have the T315I mutation.

Click here to view the Iclusig EU Summary of Medicinal Product Characteristics.

Incyte has an exclusive license from Takeda Pharmaceuticals International AG to commercialize ponatinib in the European Union and 29 other countries, including Switzerland, UK, Norway, Turkey, Israel and Russia. Iclusig is marketed in the U.S. by Millennium Pharmaceuticals, Inc., a wholly owned subsidiary of Takeda Pharmaceutical Company Limited.

About Zynyz® (retifanlimab-dlwr)

Zynyz (retifanlimab-dlwr), is an intravenous PD-1 inhibitor indicated in the U.S. for the treatment of adult patients with metastatic or recurrent locally advanced Merkel cell carcinoma (MCC). This indication is approved under accelerated approval based on tumor response rate and duration of response. Continued approval for this indication may be contingent upon verification and description of clinical benefit in confirmatory trials.

Zynyz is marketed by Incyte in the U.S. In 2017, Incyte entered into an exclusive collaboration and license agreement with MacroGenics, Inc. for global rights to retifanlimab.

Zynyz is a trademark of Incyte.

Forward-Looking Statements

Except for the historical information set forth herein, the matters set forth in this release contain predictions, estimates and other forward-looking statements, including any discussion of the following: Incyte’s potential for continued performance and growth; Incyte’s financial guidance for 2024, including its expectations regarding sales of Jakafi; expectations regarding demand for and sales of Opzelura, among other products; expectations regarding the potential and progress of programs in our pipeline, including INCB123667, INCB160058 and INCB161734; expectations regarding ongoing clinical trials and clinical trials to be initiated, including combination trials of ruxolitinib twice daily (BID) with zilurgisertib (INCB000928) and BETi (INCB057643), a phase 3 study of BETi and achieving clinical proof-of-concept for zilurgisertib, a phase 1 study evaluating the mCALR monoclonal antibody (INCA033989), a phase 3 trial of povorcitinib in prurigo nodularis, a phase 1/2 trial of ruxolitinib and axatilimab in chronic GVHD, various trials in our oral small molecule PD-L1 program, various phase 2 and 3 trials for ruxolitinib cream, and additional clinical trials across our MPH/GVHD, oncology, IAI and dermatology programs; our expectations regarding regulatory filings; expectations regarding the potential approval of QD Ruxolitinib (XR) in approximately two years; expectations regarding the number of products Incyte may launch by 2030, and our expectations regarding 2024 newsflow items.

These forward-looking statements are based on Incyte’s current expectations and subject to risks and uncertainties that may cause actual results to differ materially, including unanticipated developments in and risks related to: further research and development and the results of clinical trials possibly being unsuccessful or insufficient to meet applicable regulatory standards or warrant continued development; the ability to enroll sufficient numbers of subjects in clinical trials and the ability to enroll subjects in accordance with planned schedules; determinations made by the FDA, EMA, and other regulatory agencies; Incyte’s dependence on its relationships with and changes in the plans of its collaboration partners; the efficacy or safety of Incyte’s products and the products of Incyte’s collaboration partners; the acceptance of Incyte’s products and the products of Incyte’s collaboration partners in the marketplace; market competition; unexpected variations in the demand for Incyte’s products and the products of Incyte’s collaboration partners; the effects of announced or unexpected price regulation or limitations on reimbursement or coverage for Incyte’s products and the products of Incyte’s collaboration partners; sales, marketing, manufacturing and distribution requirements, including Incyte’s and its collaboration partners’ ability to successfully commercialize and build commercial infrastructure for newly approved products and any additional products that become approved; greater than expected expenses, including expenses relating to litigation or strategic activities; variations in foreign currency exchange rates; and other risks detailed in Incyte’s reports filed with the Securities and Exchange Commission, including its annual report on form 10-K for the year ended December 31, 2023. Incyte disclaims any intent or obligation to update these forward-looking statements.

INCYTE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share amounts)

 

 

Three Months Ended

December 31,

 

Twelve Months Ended

December 31,

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

 

GAAP

 

GAAP

Revenues:

 

 

 

 

 

 

 

Product revenues, net

$

861,729

 

 

$

764,215

 

 

$

3,165,168

 

 

$

2,746,897

 

Product royalty revenues

 

149,612

 

 

 

132,485

 

 

 

523,481

 

 

 

482,738

 

Milestone and contract revenues

 

2,000

 

 

 

30,000

 

 

 

7,000

 

 

 

165,000

 

Total revenues

 

1,013,341

 

 

 

926,700

 

 

 

3,695,649

 

 

 

3,394,635

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

Cost of product revenues (including definite-lived intangible amortization)

 

69,751

 

 

 

59,163

 

 

 

254,990

 

 

 

206,997

 

Research and development

 

444,494

 

 

 

501,360

 

 

 

1,627,594

 

 

 

1,585,936

 

Selling, general and administrative

 

293,865

 

 

 

272,819

 

 

 

1,161,293

 

 

 

1,002,140

 

Loss on change in fair value of acquisition-related contingent consideration

 

15,058

 

 

 

24,347

 

 

 

29,202

 

 

 

12,149

 

(Profit) and loss sharing under collaboration agreements

 

2,903

 

 

 

(1,082

)

 

 

2,045

 

 

 

7,973

 

Total costs and expenses

 

826,071

 

 

 

856,607

 

 

 

3,075,124

 

 

 

2,815,195

 

 

 

 

 

 

 

 

 

Income from operations

 

187,270

 

 

 

70,093

 

 

 

620,525

 

 

 

579,440

 

Interest income and other, net

 

50,436

 

 

 

26,637

 

 

 

172,348

 

 

 

39,932

 

Interest expense

 

(804

)

 

 

(667

)

 

 

(2,551

)

 

 

(2,666

)

Unrealized gain (loss) on long term investments

 

34,054

 

 

 

(15,448

)

 

 

43,893

 

 

 

(87,590

)

Income before provision for income taxes

 

270,956

 

 

 

80,615

 

 

 

834,215

 

 

 

529,116

 

Provision for income taxes

 

69,877

 

 

 

52,154

 

 

 

236,616

 

 

 

188,456

 

Net income

$

201,079

 

 

$

28,461

 

 

$

597,599

 

 

$

340,660

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

Basic

$

0.90

 

 

$

0.13

 

 

$

2.67

 

 

$

1.53

 

Diluted

$

0.89

 

 

$

0.13

 

 

$

2.65

 

 

$

1.52

 

 

 

 

 

 

 

 

 

Shares used in computing net income per share:

 

 

 

 

 

 

 

Basic

 

224,226

 

 

 

222,615

 

 

 

223,628

 

 

 

222,004

 

Diluted

 

226,125

 

 

 

224,840

 

 

 

225,928

 

 

 

223,958

 

 

INCYTE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands)

 

 

December 31,

2023

 

December 31,

2022

ASSETS

 

 

 

Cash, cash equivalents and marketable securities

$

3,656,043

 

$

3,238,965

Accounts receivable

 

743,557

 

 

644,879

Property and equipment, net

 

751,513

 

 

739,310

Finance lease right-of-use assets, net

 

25,535

 

 

26,298

Inventory

 

269,937

 

 

120,959

Prepaid expenses and other assets

 

236,782

 

 

194,144

Long term investments

 

187,716

 

 

133,676

Other intangible assets, net

 

123,545

 

 

129,219

Goodwill

 

155,593

 

 

155,593

Deferred income tax asset

 

631,886

 

 

457,941

Total assets

$

6,782,107

 

$

5,840,984

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Accounts payable, accrued expenses and other liabilities

$

1,347,669

 

$

1,216,603

Finance lease liabilities

 

32,601

 

 

33,262

Acquisition-related contingent consideration

 

212,000

 

 

221,000

Stockholders’ equity

 

5,189,837

 

 

4,370,119

Total liabilities and stockholders’ equity

$

6,782,107

 

$

5,840,984

 

INCYTE CORPORATION

RECONCILIATION OF GAAP NET INCOME TO SELECTED NON-GAAP ADJUSTED INFORMATION

(unaudited, in thousands, except per share amounts)

 

 

Three Months Ended

December 31,

 

Twelve Months

Ended December 31,

 

2023

 

2022

 

2023

 

2022

GAAP Net Income

$

201,079

 

 

$

28,461

 

$

597,599

 

 

$

340,660

 

Adjustments1:

 

 

 

 

 

 

 

Non-cash stock compensation from equity awards (R&D)2

 

36,006

 

 

 

32,312

 

 

126,697

 

 

 

112,516

 

Non-cash stock compensation from equity awards (SG&A)2

 

23,192

 

 

 

19,610

 

 

86,046

 

 

 

73,180

 

Non-cash stock compensation from equity awards (COGS)2

 

792

 

 

 

757

 

 

3,146

 

 

 

2,724

 

Non-cash interest3

 

108

 

 

 

143

 

 

463

 

 

 

431

 

Changes in fair value of equity investments4

 

(34,054

)

 

 

15,448

 

 

(43,893

)

 

 

87,590

 

Amortization of acquired product rights5

 

5,384

 

 

 

5,384

 

 

21,536

 

 

 

21,536

 

Loss on change in fair value of contingent consideration6

 

15,058

 

 

 

24,347

 

 

29,202

 

 

 

12,149

 

Asset impairment7

 

 

 

 

 

 

5,631

 

 

 

 

Tax effect of Non-GAAP pre-tax adjustments8

 

(8,441

)

 

 

13,199

 

 

(30,978

)

 

 

(28,110

)

Non-GAAP Net Income

$

239,124

 

 

$

139,661

 

$

795,449

 

 

$

622,676

 

 

 

 

 

 

 

 

 

Non-GAAP net income per share:

 

 

 

 

 

 

 

Basic

$

1.07

 

 

$

0.63

 

$

3.56

 

 

$

2.80

 

Diluted

$

1.06

 

 

$

0.62

 

$

3.52

 

 

$

2.78

 

 

 

 

 

 

 

 

 

Shares used in computing Non-GAAP net income per share:

 

 

 

 

 

 

 

Basic

 

224,226

 

 

 

222,615

 

 

223,628

 

 

 

222,004

 

Diluted

 

226,125

 

 

 

224,840

 

 

225,928

 

 

 

223,958

 

1 Included within the Milestone and contract revenues line item in the Condensed Consolidated Statements of Operations (in thousands) for the three and twelve months ended December 31, 2023 are milestones of $2,000 and $7,000, respectively, earned from our collaborative partners, as compared to milestones of $30,000 and $165,000, respectively, for the three and twelve months ended December 31, 2022. Included within the Research and development expenses line item in the Condensed Consolidated Statements of Operations (in thousands) for the three and twelve months ended December 31, 2023 are upfront consideration and milestones of $24,000 and $36,650, respectively, related to our collaborative partners, as compared to upfront consideration and milestones of $70,000 and $125,950, respectively, for the three and twelve months ended December 31, 2022.

2 As included within the Cost of product revenues (including definite-lived intangible amortization) line item; the Research and development expenses line item; and the Selling, general and administrative expenses line item in the Condensed Consolidated Statements of Operations.

3 As included within the Interest expense line item in the Condensed Consolidated Statements of Operations.

4 As included within the Unrealized gain (loss) on long term investments line item in the Condensed Consolidated Statements of Operations.

5 As included within the Cost of product revenues (including definite-lived intangible amortization) line item in the Condensed Consolidated Statements of Operations. Acquired product rights of licensed intellectual property for Iclusig is amortized utilizing a straight-line method over the estimated useful life of 12.5 years.

6 As included within the Loss on change in fair value of acquisition-related contingent consideration line item in the Condensed Consolidated Statements of Operations.

7 As included within the Selling, general and administrative expenses line item in the Condensed Consolidated Statements of Operations.

8 Income tax effects of Non-GAAP pre-tax adjustments are calculated using the applicable statutory tax rate for the jurisdictions in which the charges are incurred, while taking into consideration any valuation allowances against related deferred tax assets. The tax benefit for the three months ended December 31, 2022 includes a true up from the interim quarters related to valuation allowances against deferred tax assets associated with the loss on equity investments.

 

Media media@incyte.com

Investors ir@incyte.com

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