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Why Is Incyte (INCY) Up 1.8% Since Last Earnings Report?
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It has been about a month since the last earnings report for Incyte (INCY - Free Report) . Shares have added about 1.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Incyte due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Incyte Q4 Earnings & Revenues Fall Short of Estimates
Incyte 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 totaled $695.1 million, up 7% from the year-ago quarter’s level. 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 and also 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 totaled 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, implying a year-over-year decrease of 10%. The figure marginally 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.
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 totaled $40.4 million, up 13% year over year. 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 Lilly. 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, indicating 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 for 2024.
Adjusted research and development expenses are expected to be in the band of $1.58-$1.61 billion, while adjusted selling, general and administrative expenses are anticipated to be in the $1.11-$1.14 billion range.
Pipeline Updates
Earlier this month, Incyte entered into an asset purchase agreement with MorphoSys AG to obtain global rights for Monjuvi (tafasitamab-cxix), marketed in ex-U.S. markets as Minjuvi.
In December 2023, Incyte and Syndax submitted the biologics license application to the FDA for axatilimab to treat adult and pediatric patients aged six years or older with chronic graft-versus-host disease after failure of at least two prior lines of systemic therapy.
Incyte and Syndax expect a potential approval for axatilimab in the second half of 2024.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
VGM Scores
At this time, Incyte has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Incyte has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Incyte is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Qiagen (QGEN - Free Report) , a stock from the same industry, has gained 3.3%. The company reported its results for the quarter ended December 2023 more than a month ago.
Qiagen reported revenues of $509.16 million in the last reported quarter, representing a year-over-year change of +2.3%. EPS of $0.55 for the same period compares with $0.55 a year ago.
For the current quarter, Qiagen is expected to post earnings of $0.44 per share, indicating a change of -17% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Qiagen. Also, the stock has a VGM Score of D.
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Why Is Incyte (INCY) Up 1.8% Since Last Earnings Report?
It has been about a month since the last earnings report for Incyte (INCY - Free Report) . Shares have added about 1.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Incyte due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Incyte Q4 Earnings & Revenues Fall Short of Estimates
Incyte 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 totaled $695.1 million, up 7% from the year-ago quarter’s level. 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 and also 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 totaled 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, implying a year-over-year decrease of 10%. The figure marginally 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.
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 totaled $40.4 million, up 13% year over year. 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 Lilly. 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, indicating 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 for 2024.
Adjusted research and development expenses are expected to be in the band of $1.58-$1.61 billion, while adjusted selling, general and administrative expenses are anticipated to be in the $1.11-$1.14 billion range.
Pipeline Updates
Earlier this month, Incyte entered into an asset purchase agreement with MorphoSys AG to obtain global rights for Monjuvi (tafasitamab-cxix), marketed in ex-U.S. markets as Minjuvi.
In December 2023, Incyte and Syndax submitted the biologics license application to the FDA for axatilimab to treat adult and pediatric patients aged six years or older with chronic graft-versus-host disease after failure of at least two prior lines of systemic therapy.
Incyte and Syndax expect a potential approval for axatilimab in the second half of 2024.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
VGM Scores
At this time, Incyte has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Incyte has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Incyte is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Qiagen (QGEN - Free Report) , a stock from the same industry, has gained 3.3%. The company reported its results for the quarter ended December 2023 more than a month ago.
Qiagen reported revenues of $509.16 million in the last reported quarter, representing a year-over-year change of +2.3%. EPS of $0.55 for the same period compares with $0.55 a year ago.
For the current quarter, Qiagen is expected to post earnings of $0.44 per share, indicating a change of -17% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Qiagen. Also, the stock has a VGM Score of D.