We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Incyte (INCY) Misses Q1 Earnings Estimates, Beats on Revenues
Read MoreHide Full Article
Incyte Corporation (INCY - Free Report) reported lower-than-expected bottom-line numbers for the first quarter of 2020, while sales beat expectations.
Shares of the company have gained 15.7% so far this year compared with the industry’s 1.7% increase.
The company reported adjusted loss of $2.86 per share in contrast to the Zacks Consensus Estimate of earnings of 8 cents. The company had reported adjusted earnings of 62 cents in the year-ago quarter.
Including milestones and contracts, revenues came in at $568.5 million, which grew 14.2% year over year and beat the Zacks Consensus Estimate of $546.49 million.
Quarter in Detail
Total product-related revenues came in at $486.7 million, up 22.8% from the year-ago quarter. Jakafi revenues came in at $459.5 million, increasing 22% from the year-ago quarter and beating the Zacks Consensus Estimate of $443 million. Robust demand for Jakafi in all three approved indications drove revenues.
Net product revenues of Iclusig amounted to $27.2 million, up from $20.6 million in the year-ago quarter.
Jakavi (name outside the United States) royalty revenues from Novartis AG (NVS - Free Report) for commercialization in ex-U.S. markets grew 24% to $56.3 million. Olumiant’s product royalty revenues from Eli Lilly (LLY - Free Report) came in at $25.4 million, up 59%.
R&D expenses were $1.06 billion, significantly up from $304 million in the year-ago quarter. The significant increase in R&D expenses was due to consideration of an upfront payment of $805 million, related to a collaborative agreement with Germany-based biopharmaceutical company, MorphoSys. SG&A expenses amounted to $97.6 million, down from $111 million in the prior-year quarter.
2020 Guidance
Incyte stated on its first-quarter earnings call that although it is currently not possible to predict the overall long-term impact of the COVID-19 pandemic, there has been no impact on the commercial side of the business. The company maintained its guidance for 2020 provided on the fourth-quarter earnings call.
The company expects Jakafi revenues in the range of $1,880 -$1,950 million for 2020. Iclusig revenues are projected around $100-$105 million.
Pipeline Update
In April, the FDA approved Incyte’s selective FGFR inhibitor, Pemazyre (pemigatinib) for the treatment of adults with previously treated, unresectable locally advanced or metastatic cholangiocarcinoma with an FGFR2 fusion or other rearrangement as detected by an FDA-approved test. This is the first of the three pipeline candidates lined up to receive approval in 2020. The drug is under review in Europe. Other two candidates lined up for potential approval in 2020 are — capmatinib for lung cancer and tafasitamab for large B-cell lymphoma.
The company also plans to file a new drug application seeking approval for ruxolitinib cream, a new formulation of its key drug Jakafi, as a treatment for mild-to-moderate atopic dermatitis by the end of 2020. It is also evaluating ruxolitinib cream in two phase III studies in patients with vitiligo, with top-line data expected in 2021.
The company is evaluating Jakafi in combination with standard-of-care in patients with COVID-19 associated cytokine storm and in COVID-19 patients on mechanical ventilation with acute respiratory distress syndrome in two separate phase III studies.
Please note that Incyte entered into a global collaboration with MorphoSys for the development and commercialization of tafasitamab, an anti-CD19 monoclonal antibody. The companies received the pending clearance by antitrust authorities in March.
Our Take
Incyte’s performance in the first quarter was impressive as demand for Jakafi in all three approved indications (polycythemiavera, myelofibrosis and the recent label expansion in acute GVHD) continues to grow. The company’s efforts to diversify its revenue base are encouraging as well and the label expansion of Jakafi in additional indications will further boost sales. Moreover, approval of new drugs in 2020 will also bring additional sales.
However, pipeline setbacks remain a concern.
Incyte Corporation Price, Consensus and EPS Surprise
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
Incyte (INCY) Misses Q1 Earnings Estimates, Beats on Revenues
Incyte Corporation (INCY - Free Report) reported lower-than-expected bottom-line numbers for the first quarter of 2020, while sales beat expectations.
Shares of the company have gained 15.7% so far this year compared with the industry’s 1.7% increase.
The company reported adjusted loss of $2.86 per share in contrast to the Zacks Consensus Estimate of earnings of 8 cents. The company had reported adjusted earnings of 62 cents in the year-ago quarter.
Including milestones and contracts, revenues came in at $568.5 million, which grew 14.2% year over year and beat the Zacks Consensus Estimate of $546.49 million.
Quarter in Detail
Total product-related revenues came in at $486.7 million, up 22.8% from the year-ago quarter. Jakafi revenues came in at $459.5 million, increasing 22% from the year-ago quarter and beating the Zacks Consensus Estimate of $443 million. Robust demand for Jakafi in all three approved indications drove revenues.
Net product revenues of Iclusig amounted to $27.2 million, up from $20.6 million in the year-ago quarter.
Jakavi (name outside the United States) royalty revenues from Novartis AG (NVS - Free Report) for commercialization in ex-U.S. markets grew 24% to $56.3 million. Olumiant’s product royalty revenues from Eli Lilly (LLY - Free Report) came in at $25.4 million, up 59%.
R&D expenses were $1.06 billion, significantly up from $304 million in the year-ago quarter. The significant increase in R&D expenses was due to consideration of an upfront payment of $805 million, related to a collaborative agreement with Germany-based biopharmaceutical company, MorphoSys. SG&A expenses amounted to $97.6 million, down from $111 million in the prior-year quarter.
2020 Guidance
Incyte stated on its first-quarter earnings call that although it is currently not possible to predict the overall long-term impact of the COVID-19 pandemic, there has been no impact on the commercial side of the business. The company maintained its guidance for 2020 provided on the fourth-quarter earnings call.
The company expects Jakafi revenues in the range of $1,880 -$1,950 million for 2020. Iclusig revenues are projected around $100-$105 million.
Pipeline Update
In April, the FDA approved Incyte’s selective FGFR inhibitor, Pemazyre (pemigatinib) for the treatment of adults with previously treated, unresectable locally advanced or metastatic cholangiocarcinoma with an FGFR2 fusion or other rearrangement as detected by an FDA-approved test. This is the first of the three pipeline candidates lined up to receive approval in 2020. The drug is under review in Europe. Other two candidates lined up for potential approval in 2020 are — capmatinib for lung cancer and tafasitamab for large B-cell lymphoma.
The company also plans to file a new drug application seeking approval for ruxolitinib cream, a new formulation of its key drug Jakafi, as a treatment for mild-to-moderate atopic dermatitis by the end of 2020. It is also evaluating ruxolitinib cream in two phase III studies in patients with vitiligo, with top-line data expected in 2021.
The company is evaluating Jakafi in combination with standard-of-care in patients with COVID-19 associated cytokine storm and in COVID-19 patients on mechanical ventilation with acute respiratory distress syndrome in two separate phase III studies.
Please note that Incyte entered into a global collaboration with MorphoSys for the development and commercialization of tafasitamab, an anti-CD19 monoclonal antibody. The companies received the pending clearance by antitrust authorities in March.
Our Take
Incyte’s performance in the first quarter was impressive as demand for Jakafi in all three approved indications (polycythemiavera, myelofibrosis and the recent label expansion in acute GVHD) continues to grow. The company’s efforts to diversify its revenue base are encouraging as well and the label expansion of Jakafi in additional indications will further boost sales. Moreover, approval of new drugs in 2020 will also bring additional sales.
However, pipeline setbacks remain a concern.
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.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>