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Incyte's (INCY) Q4 Earnings & Revenues Fall Shy of Estimates
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Incyte Corporation (INCY - Free Report) reported fourth-quarter 2023 adjusted earnings of $1.06 per share, which missed the Zacks Consensus Estimate of $1.21. The company had recorded earnings of 62 cents per share in the year-ago quarter.
Total revenues in the reported quarter were $1.01 billion, which grew 9.3% year over year, driven by the sustained performance of the lead drug, Jakafi (ruxolitinib), and increased sales of Opzelura (ruxolitinib) on strong launch and demand. The top line, however, marginally missed the Zacks Consensus Estimate of $1.02 billion.
Quarterly revenues crossed the $1 billion mark for the first time on the continued growth of Jakafi and the strong launch of Opzelura.
Quarter in Detail
Jakafi’s (a first-in-class JAK1/JAK2 inhibitor approved for polycythemia vera, myelofibrosis and refractory acute graft-versus-host disease) revenues came in at $695.1 million, up 7% from the year-ago quarter. This was primarily driven by growth in patient demand across all indications. Jakafi's sales missed the Zacks Consensus Estimate of $701 million.
Opzelura (ruxolitinib) cream generated $109.2 million in sales, increasing 78% year over year while surpassing the Zacks Consensus Estimate of $103 million. The year-over-year rise in sales was driven by patient demand and expansion in payer coverage as the launch in atopic dermatitis and vitiligo continues.
Opzelura cream 1.5% is approved 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 atopic dermatitis.
The newly approved medicine, Zynyz (retifanlimab-dlwr), generated sales of $0.58 million. The company obtained accelerated approval for Zynyz to treat metastatic or recurrent locally advanced Merkel cell carcinoma.
Net product revenues of Iclusig were almost $27.1 million, down 2% year over year. The figure, however, beat the Zacks Consensus Estimate of $26.8 million.
Pemazyre generated $20.6 million in sales, reflecting a year-over-year decrease of 10%. The figure slightly beat the Zacks Consensus Estimate of $19.8 million.
Minjuvi's revenues totaled $8.9 million, up 87% from the prior year quarter’s number. The figure beat the Zacks Consensus Estimate of $8.1 million.
Shares of Incyte have plunged 27.1% in the past year compared with the industry’s decline of 11.7%.
Image Source: Zacks Investment Research
We remind investors that Jakafi is marketed by Incyte in the United States and by Novartis (NVS - Free Report) as Jakavi in ex-U.S. markets.
Jakavi royalty revenues from Novartis for commercialization in ex-U.S. markets rose 14% to $103.9 million. Jakavi royalties beat the Zacks Consensus Estimate of $102 million.
Incyte also receives royalties from the 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 $4.7 million, up 11% year over year.
Olumiant’s (baricitinib) product royalty revenues from Eli Lilly (LLY - Free Report) totaled $40.4 million, up 13% year over year. However, the figure beat the Zacks Consensus Estimate of $38.2 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 $408.5 million, down 13% year over year. Notably, in the year-ago quarter, the company had made a $70 million upfront payment as part of the Villaris asset acquisition. No such payments were recorded during this quarter.
Adjusted selling, general and administrative expenses amounted to $270.7 million, up 7% from the prior-year quarter’s number. This was due to higher costs to support the launch of Opzelura for the treatment of vitiligo.
Incyte’s cash and cash equivalents totaled $3.7 billion as of Dec 31, 2023, compared with $3.5 billion as of Sep 30, 2023.
Full-Year Results
For 2023, Incyte generated revenues of $3.69 billion, reflecting around 8.9% growth year over year.
For the same period, the company reported adjusted earnings of $3.52 per share, up 26.6% year over year.
2024 Guidance
The company expects Jakafi revenues in the range of $2.69-$2.75 billion in 2024.
Adjusted research and development expenses are expected in the band of $1.58-$1.61 billion while adjusted selling, general and administrative expenses are expected in the range of $1.11-$1.14 billion.
Pipeline Updates
Earlier this month, Incyte entered into an asset purchase agreement with MorphoSys AG to obtain global rights to Monjuvi (tafasitamab-cxix) marketed in ex-U.S. markets as Minjuvi.
Incyte has a collaboration and license agreement with Syndax Pharmaceuticals (SNDX - Free Report) to develop and commercialize axatilimab, Syndax’s anti-CSF-1R monoclonal antibody, in chronic GVHD and other fibrotic diseases, is pending regulatory clearance.
In December 2023, INCY and SNDX submitted the biologics license application for axatilimab to treat adult and pediatric patients six years or older with chronic graft-versus-host disease after failure of at least two prior lines of systemic therapy to the FDA.
Incyte and Syndax expect a potential approval for axatilimab in the second half of 2024.
Incyte Corporation Price, Consensus and EPS Surprise
Image: Shutterstock
Incyte's (INCY) Q4 Earnings & Revenues Fall Shy of Estimates
Incyte Corporation (INCY - Free Report) reported fourth-quarter 2023 adjusted earnings of $1.06 per share, which missed the Zacks Consensus Estimate of $1.21. The company had recorded earnings of 62 cents per share in the year-ago quarter.
Total revenues in the reported quarter were $1.01 billion, which grew 9.3% year over year, driven by the sustained performance of the lead drug, Jakafi (ruxolitinib), and increased sales of Opzelura (ruxolitinib) on strong launch and demand. The top line, however, marginally missed the Zacks Consensus Estimate of $1.02 billion.
Quarterly revenues crossed the $1 billion mark for the first time on the continued growth of Jakafi and the strong launch of Opzelura.
Quarter in Detail
Jakafi’s (a first-in-class JAK1/JAK2 inhibitor approved for polycythemia vera, myelofibrosis and refractory acute graft-versus-host disease) revenues came in at $695.1 million, up 7% from the year-ago quarter. This was primarily driven by growth in patient demand across all indications. Jakafi's sales missed the Zacks Consensus Estimate of $701 million.
Opzelura (ruxolitinib) cream generated $109.2 million in sales, increasing 78% year over year while surpassing the Zacks Consensus Estimate of $103 million. The year-over-year rise in sales was driven by patient demand and expansion in payer coverage as the launch in atopic dermatitis and vitiligo continues.
Opzelura cream 1.5% is approved 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 atopic dermatitis.
The newly approved medicine, Zynyz (retifanlimab-dlwr), generated sales of $0.58 million. The company obtained accelerated approval for Zynyz to treat metastatic or recurrent locally advanced Merkel cell carcinoma.
Net product revenues of Iclusig were almost $27.1 million, down 2% year over year. The figure, however, beat the Zacks Consensus Estimate of $26.8 million.
Pemazyre generated $20.6 million in sales, reflecting a year-over-year decrease of 10%. The figure slightly beat the Zacks Consensus Estimate of $19.8 million.
Minjuvi's revenues totaled $8.9 million, up 87% from the prior year quarter’s number. The figure beat the Zacks Consensus Estimate of $8.1 million.
Shares of Incyte have plunged 27.1% in the past year compared with the industry’s decline of 11.7%.
We remind investors that Jakafi is marketed by Incyte in the United States and by Novartis (NVS - Free Report) as Jakavi in ex-U.S. markets.
Jakavi royalty revenues from Novartis for commercialization in ex-U.S. markets rose 14% to $103.9 million. Jakavi royalties beat the Zacks Consensus Estimate of $102 million.
Incyte also receives royalties from the 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 $4.7 million, up 11% year over year.
Olumiant’s (baricitinib) product royalty revenues from Eli Lilly (LLY - Free Report) totaled $40.4 million, up 13% year over year. However, the figure beat the Zacks Consensus Estimate of $38.2 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 $408.5 million, down 13% year over year. Notably, in the year-ago quarter, the company had made a $70 million upfront payment as part of the Villaris asset acquisition. No such payments were recorded during this quarter.
Adjusted selling, general and administrative expenses amounted to $270.7 million, up 7% from the prior-year quarter’s number. This was due to higher costs to support the launch of Opzelura for the treatment of vitiligo.
Incyte’s cash and cash equivalents totaled $3.7 billion as of Dec 31, 2023, compared with $3.5 billion as of Sep 30, 2023.
Full-Year Results
For 2023, Incyte generated revenues of $3.69 billion, reflecting around 8.9% growth year over year.
For the same period, the company reported adjusted earnings of $3.52 per share, up 26.6% year over year.
2024 Guidance
The company expects Jakafi revenues in the range of $2.69-$2.75 billion in 2024.
Adjusted research and development expenses are expected in the band of $1.58-$1.61 billion while adjusted selling, general and administrative expenses are expected in the range of $1.11-$1.14 billion.
Pipeline Updates
Earlier this month, Incyte entered into an asset purchase agreement with MorphoSys AG to obtain global rights to Monjuvi (tafasitamab-cxix) marketed in ex-U.S. markets as Minjuvi.
Incyte has a collaboration and license agreement with Syndax Pharmaceuticals (SNDX - Free Report) to develop and commercialize axatilimab, Syndax’s anti-CSF-1R monoclonal antibody, in chronic GVHD and other fibrotic diseases, is pending regulatory clearance.
In December 2023, INCY and SNDX submitted the biologics license application for axatilimab to treat adult and pediatric patients six years or older with chronic graft-versus-host disease after failure of at least two prior lines of systemic therapy to the FDA.
Incyte and Syndax expect a potential approval for axatilimab in the second half of 2024.
Incyte Corporation Price, Consensus and EPS Surprise
Incyte Corporation price-consensus-eps-surprise-chart | Incyte Corporation Quote
Zacks Rank
Incyte currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.