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Incyte's (INCY) Q3 Earnings and Revenues Miss Estimates
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Incyte Corporation’s (INCY - Free Report) earnings and revenues missed the Zacks Consensus Estimate in the third quarter of 2022. However, the company’s lead drug, Jakafi (ruxolitinib), continues to witness growth in patient demand.
The company reported adjusted earnings of 60 cents per share in the third quarter of 2022, missing the Zacks Consensus Estimate of 72 cents. It had reported earnings of $1.18 per share in the year-ago quarter.
Total revenues came in at $823.3 million in the third quarter of 2022, increasing 1.2% year over year. Sales also missed the Zacks Consensus Estimate of $847 million.
Shares of Incyte have risen 1.3% so far this year against the industry’s decline of 21.8%.
Image Source: Zacks Investment Research
Quarter in Detail
Total product and royalty revenues came in at $823.3 million, up 6% from the year-ago quarter. Jakafi’s (a first-in-class JAK1/JAK2 inhibitor approved for polycythemiavera, myelofibrosis and refractory acute graft-versus-host disease) revenues came in at $619.5 million. The figure increased 13% from the year-ago quarter and surpassed the Zacks Consensus Estimate of $616 million.
Net product revenues of Iclusig amounted to $25.9 million, down 9% from the year-ago quarter.
Pemazyre generated $23.4 million in sales during the third quarter, reflecting an increase of 33% year over year.
The newly approved medicine, Opzelura (ruxolitinib) cream generated $38.1 million in sales during the third quarter.
In July 2022, the FDA approved Opzelura cream 1.5% for the topical treatment of nonsegmental vitiligo in adult and pediatric patients aged 12 years and older. Opzelura is also approved by the FDA for the topical short-term and non-continuous chronic treatment of mild to moderate atopic dermatitis.
Per the company, growth in Opzelura revenues during the third quarter of 2022 was largely driven by strong demand for both atopic dermatitis and vitiligo.
Jakavi’s (name outside the United States) royalty revenues from Novartis (NVS - Free Report) for commercialization in ex-U.S. markets declined 9% to $85.8 million.
Jakafi is marketed by Incyte in the United States and by Novartis as Jakavi outside the country.
Incyte also receives royalties from sales of Tabrecta (capmatinib) for the treatment of adult patients with metastatic non-small-cell lung cancer. Its partner, Novartis, has exclusive worldwide development and commercialization rights for Tabrecta.
Tabrecta’s product royalty revenues came in at $4.1 million, up 50% year over year.
Olumiant’s (baricitinib) product royalty revenues from Eli Lilly (LLY - Free Report) came in at $20.3 million, down 76% year over year.
Incyte has a collaboration agreement with Eli Lilly for Olumiant. The drug is a once-daily, oral JAK inhibitor discovered by Incyte and licensed to LLY and is approved for several types of autoimmune diseases.
R&D expenses were $358.3 million, up 16% from the year-ago quarter, owing to higher investments in late-stage pipeline development. SG&A expenses amounted to $247.5 million, up 47% from the prior-year quarter, due to the expenses related to the establishment of its dermatology commercial organization and activities to support the potential launch of Opzelura for the treatment of atopic dermatitis and pre-launch activities for the vitiligo indication.
Pipeline and Regulatory Updates
Last month, Incyte entered into an agreement to acquire Villaris Therapeutics, a biopharmaceutical company focused on developing novel antibody therapeutics for vitiligo. Its lead asset, auremolimab (VM6), an anti-IL-15Rβ monoclonal antibody (mAb), is expected to enter clinical development in 2023.
In August 2022, the FDA approved Pemazyre (pemigatinib), a selective fibroblast growth factor receptor (FGFR) inhibitor, for the treatment of adults with relapsed or refractory myeloid/lymphoid neoplasms (MLNs) with FGFR1 rearrangement. MLNs with FGFR1 rearrangement are extremely rare and aggressive blood cancers that may affect less than 1 in 100,000 people in the United States.
Pemazyre is already approved for adults with previously treated, unresectable, locally advanced or metastatic cholangiocarcinoma with an FGFR2 fusion or other rearrangements.
2022 Guidance
Incyte tightened the full-year Jakafi net product revenue guidance. The company now expects Jakafi revenues to be in the range of $2.38-$2.40 billion compared with the previous expectation of $2.36-$2.40 billion for 2022.
Other Hematology/Oncology net product revenues are now projected in the range of $200-$210 million compared with the previous expectation of $210-$240 million.
Incyte Corporation Price, Consensus and EPS Surprise
Loss per share estimates for Atea Pharmaceuticals narrowed 10.9% for 2022 and 9.5% for 2023 in the past 60 days.
Earnings of Atea Pharmaceuticals surpassed estimates in three of the trailing four quarters and missed on the other occasion. AVIR delivered a negative earnings surprise of 58.74% on average.
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Incyte's (INCY) Q3 Earnings and Revenues Miss Estimates
Incyte Corporation’s (INCY - Free Report) earnings and revenues missed the Zacks Consensus Estimate in the third quarter of 2022. However, the company’s lead drug, Jakafi (ruxolitinib), continues to witness growth in patient demand.
The company reported adjusted earnings of 60 cents per share in the third quarter of 2022, missing the Zacks Consensus Estimate of 72 cents. It had reported earnings of $1.18 per share in the year-ago quarter.
Total revenues came in at $823.3 million in the third quarter of 2022, increasing 1.2% year over year. Sales also missed the Zacks Consensus Estimate of $847 million.
Shares of Incyte have risen 1.3% so far this year against the industry’s decline of 21.8%.
Image Source: Zacks Investment Research
Quarter in Detail
Total product and royalty revenues came in at $823.3 million, up 6% from the year-ago quarter. Jakafi’s (a first-in-class JAK1/JAK2 inhibitor approved for polycythemiavera, myelofibrosis and refractory acute graft-versus-host disease) revenues came in at $619.5 million. The figure increased 13% from the year-ago quarter and surpassed the Zacks Consensus Estimate of $616 million.
Net product revenues of Iclusig amounted to $25.9 million, down 9% from the year-ago quarter.
Pemazyre generated $23.4 million in sales during the third quarter, reflecting an increase of 33% year over year.
The newly approved medicine, Opzelura (ruxolitinib) cream generated $38.1 million in sales during the third quarter.
In July 2022, the FDA approved Opzelura cream 1.5% for the topical treatment of nonsegmental vitiligo in adult and pediatric patients aged 12 years and older. Opzelura is also approved by the FDA for the topical short-term and non-continuous chronic treatment of mild to moderate atopic dermatitis.
Per the company, growth in Opzelura revenues during the third quarter of 2022 was largely driven by strong demand for both atopic dermatitis and vitiligo.
Jakavi’s (name outside the United States) royalty revenues from Novartis (NVS - Free Report) for commercialization in ex-U.S. markets declined 9% to $85.8 million.
Jakafi is marketed by Incyte in the United States and by Novartis as Jakavi outside the country.
Incyte also receives royalties from sales of Tabrecta (capmatinib) for the treatment of adult patients with metastatic non-small-cell lung cancer. Its partner, Novartis, has exclusive worldwide development and commercialization rights for Tabrecta.
Tabrecta’s product royalty revenues came in at $4.1 million, up 50% year over year.
Olumiant’s (baricitinib) product royalty revenues from Eli Lilly (LLY - Free Report) came in at $20.3 million, down 76% year over year.
Incyte has a collaboration agreement with Eli Lilly for Olumiant. The drug is a once-daily, oral JAK inhibitor discovered by Incyte and licensed to LLY and is approved for several types of autoimmune diseases.
R&D expenses were $358.3 million, up 16% from the year-ago quarter, owing to higher investments in late-stage pipeline development. SG&A expenses amounted to $247.5 million, up 47% from the prior-year quarter, due to the expenses related to the establishment of its dermatology commercial organization and activities to support the potential launch of Opzelura for the treatment of atopic dermatitis and pre-launch activities for the vitiligo indication.
Pipeline and Regulatory Updates
Last month, Incyte entered into an agreement to acquire Villaris Therapeutics, a biopharmaceutical company focused on developing novel antibody therapeutics for vitiligo. Its lead asset, auremolimab (VM6), an anti-IL-15Rβ monoclonal antibody (mAb), is expected to enter clinical development in 2023.
In August 2022, the FDA approved Pemazyre (pemigatinib), a selective fibroblast growth factor receptor (FGFR) inhibitor, for the treatment of adults with relapsed or refractory myeloid/lymphoid neoplasms (MLNs) with FGFR1 rearrangement. MLNs with FGFR1 rearrangement are extremely rare and aggressive blood cancers that may affect less than 1 in 100,000 people in the United States.
Pemazyre is already approved for adults with previously treated, unresectable, locally advanced or metastatic cholangiocarcinoma with an FGFR2 fusion or other rearrangements.
2022 Guidance
Incyte tightened the full-year Jakafi net product revenue guidance. The company now expects Jakafi revenues to be in the range of $2.38-$2.40 billion compared with the previous expectation of $2.36-$2.40 billion for 2022.
Other Hematology/Oncology net product revenues are now projected in the range of $200-$210 million compared with the previous expectation of $210-$240 million.
Incyte Corporation Price, Consensus and EPS Surprise
Incyte Corporation price-consensus-eps-surprise-chart | Incyte Corporation Quote
Zacks Rank & Stock to Consider
Incyte currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the biotech sector is Atea Pharmaceuticals, Inc. (AVIR - Free Report) , which has a Zacks Rank #2 (Buy) at present.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Loss per share estimates for Atea Pharmaceuticals narrowed 10.9% for 2022 and 9.5% for 2023 in the past 60 days.
Earnings of Atea Pharmaceuticals surpassed estimates in three of the trailing four quarters and missed on the other occasion. AVIR delivered a negative earnings surprise of 58.74% on average.