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Incyte's (INCY) Earnings and Revenues Surpass Estimates in Q2

·4-min read

Incyte Corporation’s INCY earnings and revenues surpassed the Zacks Consensus Estimate in the second quarter of 2022. The company’s lead drug, Jakafi (ruxolitinib) continues to witness growth in patient demand during the same time.

Shares of Incyte have rallied 5.5% in the year against the industry’s 21.6% decline.

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The company reported adjusted earnings of $1.01 per share in the second quarter of 2022, comprehensively beating the Zacks Consensus Estimate of 79 cents. It had reported earnings of 80 cents per share in the year-ago quarter.

Incyte’s total revenues came in at $911.4 million in the second quarter of 2022, increasing 29.1% year over year. Sales surpassed the Zacks Consensus Estimate of $821 million as well.

Quarter in Detail

Total product and royalty revenues came in at $781.4 million, up 12.3% 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 [GVHD]) revenues came in at $597.7 million. The figure increased 13% from the year-ago quarter and surpassed the Zacks Consensus Estimate of $590 million.

Net product revenues of Iclusig amounted to $26.2 million, down 7% from the year-ago quarter.

Pemazyre generated $18.9 million in sales during the second quarter, reflecting an increase of 6% year over year.

Jakavi’s (name outside the United States) royalty revenues from Novartis NVS for commercialization in ex-U.S. markets grew 2% to $83.7 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 to Tabrecta.

Tabrecta’s product royalty revenues came in at $3.6 million, up 45% year over year.

Olumiant’s product royalty revenues from Eli Lilly LLY came in at $30.2 million, down 16% year over year.

R&D expenses were $319.1 million, up 1% from the year-ago quarter, owing to higher investments in late-stage pipeline development. SG&A expenses amounted to $235.6 million, up 54% from the prior-year quarter due to 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 (“AD”) and pre-launch activities for the vitiligo indication.

Pipeline and Regulatory Updates

In July 2022, the FDA approved ruxolitinib cream for another indication. The regulatory body 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 under review in Europe for the given indication. Ruxolitinib cream is marketed under the brand name, Opzelura.

In June 2022, the FDA approved Olumiant, a once-daily pill, as a first-in-disease systemic treatment for adults with severe alopecia areata (AA), available as 4-mg, 2-mg and 1-mg tablets.

Olumiant was also approved in Europe for the treatment of adults with severe AA in June.

The drug is a once-daily, oral JAK inhibitor discovered by Incyte and licensed to Lilly. It is also approved for the treatment of adults with moderate to severe rheumatoid arthritis.

In May 2022, the European Commission approved Jakavi for the treatment of patients with acute or chronic GVHD, who have an inadequate response to corticosteroids or other systemic therapies.

2022 Guidance

Incyte raised the bottom end of full-year Jakafi net product revenue guidance. The company now expects Jakafi revenues to be in the range of $2.36-$2.40 billion compared with the previous expectation of $2.33-$2.40 billion for 2022.

Other Hematology/Oncology net product revenues are projected in the range of $210-$240 million, unchanged from the previous expectation.

Incyte Corporation Price, Consensus and EPS Surprise

Incyte Corporation Price, Consensus and EPS Surprise
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 Precision BioSciences, Inc. DTIL, sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Precision BioSciences’ loss per share estimates narrowed 5.8% for 2022 and 16.2% for 2023 in the past 60 days.

Earnings of Precision BioSciences have surpassed estimates in each of the trailing four quarters. DTIL delivered an earnings surprise of 76.15%, on average.

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