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Incyte (INCY) Beats on Q2 Earnings and Revenue Estimates
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Incyte Corporation (INCY - Free Report) reported second-quarter 2023 adjusted earnings of 99 cents per share, which beat the Zacks Consensus Estimate of 87 cents. The company recorded earnings of $1.01 per share in the year-ago quarter.
Total revenues came in at $954.6 million, up 5% year over year. The figure beat the Zacks Consensus Estimate of $920 million owing to higher net product revenues from Jakafi and Opzelura.
Shares of Incyte have lost 20.7% in the year-to-date period compared with the industry’s decline of 11.3%.
Image Source: Zacks Investment Research
Quarter in Detail
Jakafi’s (a first-in-class JAK1/JAK2 inhibitor approved for polycythemiavera, myelofibrosis and refractory acute graft-versus-host disease) revenues came in at almost $682.3 million, up 14% from the year-ago quarter’s number. This was primarily driven by growth in patient demand across all indications. Jakafi's sales beat the Zacks Consensus Estimate of $647 million.
Opzelura (ruxolitinib) cream generated $80 million in sales. The figure grew almost 384% year over year and beat the consensus estimate of $78 million. This was due to growth in patient demand and label expansion in the indication atopic dermatitis (AD).
In July 2022, the FDA approved Opzelura cream 1.5% for the topical treatment of non-segmental 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 AD.
The newly approved medicine, Zynyz (retifanlimab-dlwr), generated first-quarter sales of 0.57 million. The company obtained an accelerated approval of Zynyz, earlier this March, for treating metastatic or recurrent locally advanced merkel cell carcinoma.
Net product revenues of Iclusig were almost $29.09 million, up 11% year over year. The figure also beat the Zacks Consensus Estimate of $26.53 million.
Pemazyre generated $21.6 million in sales, indicating a year-over-year increase of 14%. However, the figure missed the Zacks Consensus Estimate of $24.05 million.
Minjuvi's revenues totaled $13.16 million, up 198% from the prior-year quarter’s number. The revenues significantly beat the Zacks Consensus Estimate of $6.89 million.
Jakafi is marketed by Incyte in the United States and by Novartis (NVS - Free Report) as Jakavi outside the country. The drug’s royalty revenues from Novartis for commercialization in ex-U.S. markets surged 8% to $90.5 million. Jakavi royalties beat the Zacks Consensus Estimate of $89 million.
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. The drug’s product royalty revenues amounted to $4.8 million, up 34% year over year.
Olumiant’s (baricitinib) product royalty revenues from Eli Lilly (LLY - Free Report) totaled $32.01 million, up 6% year over year. However, the figure missed the Zacks Consensus Estimate of $36.83 million.
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. It is approved for several types of autoimmune diseases.
Adjusted research and development expenses totaled $367.9 million, up 15% from the year-ago quarter’s actual, owing to higher investments in late-stage pipeline development. Adjusted selling, general and administrative expenses amounted to $263 million, up 12% from the prior-year quarter’s number. This was due to expenses related to supporting the launch of Opzelura for the treatment of vitiligo.
Incyte’s cash and cash equivalents totaled $3.4 billion as of Jun 30, 2023, compared with $3.1 billion as of Mar 31, 2023.
2023 Guidance Updated
Based on its second-quarter performance, Incyte updated its previously issued guidance for 2023. The company now expects Jakafi revenues in the range of $2.58-$2.63 billion compared with the earlier projection of $2.55-$2.63 billion.
Pipeline and Regulatory Updates
Earlier yesterday, the company entered into a collaboration and supply agreement with Replimune Group, Inc. (REPL - Free Report) . The agreement is aimed to advance Replimune’s lead product candidate, RP1, in combination with INCB99280, Incyte’s small molecule oral PD-L1 inhibitor in patients with cutaneous squamous cell carcinoma.
The clinical study is expected to start in early 2024. Under the agreement, Incyte will initiate and sponsor the clinical study and Replimune will supply RP1 to Incyte for the same. The companies will equally share the costs of the study.
Image: Bigstock
Incyte (INCY) Beats on Q2 Earnings and Revenue Estimates
Incyte Corporation (INCY - Free Report) reported second-quarter 2023 adjusted earnings of 99 cents per share, which beat the Zacks Consensus Estimate of 87 cents. The company recorded earnings of $1.01 per share in the year-ago quarter.
Total revenues came in at $954.6 million, up 5% year over year. The figure beat the Zacks Consensus Estimate of $920 million owing to higher net product revenues from Jakafi and Opzelura.
Shares of Incyte have lost 20.7% in the year-to-date period compared with the industry’s decline of 11.3%.
Image Source: Zacks Investment Research
Quarter in Detail
Jakafi’s (a first-in-class JAK1/JAK2 inhibitor approved for polycythemiavera, myelofibrosis and refractory acute graft-versus-host disease) revenues came in at almost $682.3 million, up 14% from the year-ago quarter’s number. This was primarily driven by growth in patient demand across all indications. Jakafi's sales beat the Zacks Consensus Estimate of $647 million.
Opzelura (ruxolitinib) cream generated $80 million in sales. The figure grew almost 384% year over year and beat the consensus estimate of $78 million. This was due to growth in patient demand and label expansion in the indication atopic dermatitis (AD).
In July 2022, the FDA approved Opzelura cream 1.5% for the topical treatment of non-segmental 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 AD.
The newly approved medicine, Zynyz (retifanlimab-dlwr), generated first-quarter sales of 0.57 million. The company obtained an accelerated approval of Zynyz, earlier this March, for treating metastatic or recurrent locally advanced merkel cell carcinoma.
Net product revenues of Iclusig were almost $29.09 million, up 11% year over year. The figure also beat the Zacks Consensus Estimate of $26.53 million.
Pemazyre generated $21.6 million in sales, indicating a year-over-year increase of 14%. However, the figure missed the Zacks Consensus Estimate of $24.05 million.
Minjuvi's revenues totaled $13.16 million, up 198% from the prior-year quarter’s number. The revenues significantly beat the Zacks Consensus Estimate of $6.89 million.
Jakafi is marketed by Incyte in the United States and by Novartis (NVS - Free Report) as Jakavi outside the country. The drug’s royalty revenues from Novartis for commercialization in ex-U.S. markets surged 8% to $90.5 million. Jakavi royalties beat the Zacks Consensus Estimate of $89 million.
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. The drug’s product royalty revenues amounted to $4.8 million, up 34% year over year.
Olumiant’s (baricitinib) product royalty revenues from Eli Lilly (LLY - Free Report) totaled $32.01 million, up 6% year over year. However, the figure missed the Zacks Consensus Estimate of $36.83 million.
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. It is approved for several types of autoimmune diseases.
Adjusted research and development expenses totaled $367.9 million, up 15% from the year-ago quarter’s actual, owing to higher investments in late-stage pipeline development. Adjusted selling, general and administrative expenses amounted to $263 million, up 12% from the prior-year quarter’s number. This was due to expenses related to supporting the launch of Opzelura for the treatment of vitiligo.
Incyte’s cash and cash equivalents totaled $3.4 billion as of Jun 30, 2023, compared with $3.1 billion as of Mar 31, 2023.
2023 Guidance Updated
Based on its second-quarter performance, Incyte updated its previously issued guidance for 2023. The company now expects Jakafi revenues in the range of $2.58-$2.63 billion compared with the earlier projection of $2.55-$2.63 billion.
Pipeline and Regulatory Updates
Earlier yesterday, the company entered into a collaboration and supply agreement with Replimune Group, Inc. (REPL - Free Report) . The agreement is aimed to advance Replimune’s lead product candidate, RP1, in combination with INCB99280, Incyte’s small molecule oral PD-L1 inhibitor in patients with cutaneous squamous cell carcinoma.
The clinical study is expected to start in early 2024. Under the agreement, Incyte will initiate and sponsor the clinical study and Replimune will supply RP1 to Incyte for the same. The companies will equally share the costs of the study.
Incyte Corporation Price and Consensus
Incyte Corporation price-consensus-chart | Incyte Corporation Quote
Zacks Rank
Incyte currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.