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Incyte's (INCY) Q2 Earnings Lag Estimates, Revenues Top
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Incyte Corporation (INCY - Free Report) reported second-quarter 2024 adjusted loss of $1.82 per share against the Zacks Consensus Estimate of earnings of 78 cents. The company had recorded earnings of 99 cents per share in the year-ago quarter.
Total revenues in the reported quarter were $1.04 billion, which grew 9% year over year, driven by the sustained performance of its lead drug, Jakafi (ruxolitinib), and increased sales of Opzelura (ruxolitinib) cream on strong launch and demand. The top line beat the Zacks Consensus Estimate of $1.02 billion.
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 $705.9 million, up 3% from the year-ago quarter, owing to growth across all indications. Jakafi's sales beat the Zacks Consensus Estimate of $678 million.
Opzelura (ruxolitinib) cream generated $121.7 million in sales, which rose 52% year over year and surpassed the Zacks Consensus Estimate of $114 million. The year-over-year rise in sales was driven by patient demand, refills and expansion in payer coverage in both atopic dermatitis (AD) and vitiligo.
The newly approved medicine Zynyz (retifanlimab-dlwr) generated sales of $0.65 million. The company obtained accelerated approval for Zynyz to treat metastatic or recurrent locally advanced Merkel cell carcinoma.
Net product revenues of Iclusig were $26.9 million, down 8% year over year. The figure missed the Zacks Consensus Estimate of $30.1 million.
Pemazyre generated $20.3 million in sales, reflecting a year-over-year decrease of 6%. The figure marginally missed the Zacks Consensus Estimate of $20.6 million.
Minjuvi's revenues totaled $31.1 million, surging 136% from the prior year quarter’s number. The figure beat the Zacks Consensus Estimate of $28.5 million.
Incyte gained worldwide exclusive global rights for tafasitamab from MorphoSys AG, which is marketed as Monjuvi in the United States and as Minjuvi in the ex-U.S. markets in February.
Shares of Incyte have risen 9.2% year to date compared with the industry’s growth of 0.5%.
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 10% to $99.3 million. Jakavi royalties beat the Zacks Consensus Estimate of $92 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 royalty revenues from the drug’s sales amounted to $5.3 million, up 10% year over year.
Olumiant’s (baricitinib) product royalty revenues from Eli Lilly (LLY - Free Report) totaled $31.7 million, down 1% year over year. The figure missed the Zacks Consensus Estimate of $33.5 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 $1,089 million, up 196% year over year. This increase was primarily due to a $679.4 million expense related to the IPR&D assets acquired as part of the Escient acquisition.
In May 2024, Incyte completed the acquisition of Escient Pharmaceuticals, a clinical-stage drug discovery and development company advancing novel small molecule therapeutics for systemic immune and neuro-immune disorders.
Adjusted selling, general and administrative expenses were $262.6 million, almost in line with the prior-year quarter’s number.
Incyte’s cash and cash equivalents totaled $1.4 billion as of Jun 30, 2024, compared with $3.9 billion as of Mar 31, 2024.
2024 Guidance
Incyte raised the bottom end of the 2024 revenue guidance for Jakafi. The company now expects Jakafi revenues in the range of $2.71-$2.75 billion compared with the earlier projection of $2.69-$2.75 billion.
Adjusted research and development expenses are now expected in the band of $1.61-$1.65 billion compared with the earlier projection of $1.58-$1.61 billion. Adjusted selling, general and administrative expenses are expected in the range of $1.11-$1.14 billion, which remains unchanged.
Recent Updates
The acquisition of Escient Pharmaceuticals added EP262 and EP547 to INCY’s portfolio. EP262 is a first-in-class, potent, highly selective, once-daily small molecule antagonist of Mas-related G protein-coupled receptor X2 (MRGPRX2). The candidate is being evaluated to treat multiple mast cell-mediated diseases, including chronic inducible urticaria, chronic spontaneous urticaria and atopic dermatitis. EP547 is a first-in-class oral MRGPRX4 antagonist with the potential to treat cholestatic pruritus and other conditions with severe pruritus.
Incyte Corporation Price, Consensus and EPS Surprise
In the past 60 days, estimates for Halozyme’s 2024 earnings per share have improved from $3.69 to $3.90. Earnings per share estimates for 2025 have improved from $4.50 to $4.81. Year to date, shares of HALO have soared 50%.
HALO’s earnings beat estimates in three of the trailing four quarters and met the same on the remaining occasion, the average surprise being 9.40%.
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Incyte's (INCY) Q2 Earnings Lag Estimates, Revenues Top
Incyte Corporation (INCY - Free Report) reported second-quarter 2024 adjusted loss of $1.82 per share against the Zacks Consensus Estimate of earnings of 78 cents. The company had recorded earnings of 99 cents per share in the year-ago quarter.
Total revenues in the reported quarter were $1.04 billion, which grew 9% year over year, driven by the sustained performance of its lead drug, Jakafi (ruxolitinib), and increased sales of Opzelura (ruxolitinib) cream on strong launch and demand. The top line beat the Zacks Consensus Estimate of $1.02 billion.
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 $705.9 million, up 3% from the year-ago quarter, owing to growth across all indications. Jakafi's sales beat the Zacks Consensus Estimate of $678 million.
Opzelura (ruxolitinib) cream generated $121.7 million in sales, which rose 52% year over year and surpassed the Zacks Consensus Estimate of $114 million. The year-over-year rise in sales was driven by patient demand, refills and expansion in payer coverage in both atopic dermatitis (AD) and vitiligo.
The newly approved medicine Zynyz (retifanlimab-dlwr) generated sales of $0.65 million. The company obtained accelerated approval for Zynyz to treat metastatic or recurrent locally advanced Merkel cell carcinoma.
Net product revenues of Iclusig were $26.9 million, down 8% year over year. The figure missed the Zacks Consensus Estimate of $30.1 million.
Pemazyre generated $20.3 million in sales, reflecting a year-over-year decrease of 6%. The figure marginally missed the Zacks Consensus Estimate of $20.6 million.
Minjuvi's revenues totaled $31.1 million, surging 136% from the prior year quarter’s number. The figure beat the Zacks Consensus Estimate of $28.5 million.
Incyte gained worldwide exclusive global rights for tafasitamab from MorphoSys AG, which is marketed as Monjuvi in the United States and as Minjuvi in the ex-U.S. markets in February.
Shares of Incyte have risen 9.2% year to date compared with the industry’s growth of 0.5%.
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 10% to $99.3 million. Jakavi royalties beat the Zacks Consensus Estimate of $92 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 royalty revenues from the drug’s sales amounted to $5.3 million, up 10% year over year.
Olumiant’s (baricitinib) product royalty revenues from Eli Lilly (LLY - Free Report) totaled $31.7 million, down 1% year over year. The figure missed the Zacks Consensus Estimate of $33.5 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 $1,089 million, up 196% year over year. This increase was primarily due to a $679.4 million expense related to the IPR&D assets acquired as part of the Escient acquisition.
In May 2024, Incyte completed the acquisition of Escient Pharmaceuticals, a clinical-stage drug discovery and development company advancing novel small molecule therapeutics for systemic immune and neuro-immune disorders.
Adjusted selling, general and administrative expenses were $262.6 million, almost in line with the prior-year quarter’s number.
Incyte’s cash and cash equivalents totaled $1.4 billion as of Jun 30, 2024, compared with $3.9 billion as of Mar 31, 2024.
2024 Guidance
Incyte raised the bottom end of the 2024 revenue guidance for Jakafi. The company now expects Jakafi revenues in the range of $2.71-$2.75 billion compared with the earlier projection of $2.69-$2.75 billion.
Adjusted research and development expenses are now expected in the band of $1.61-$1.65 billion compared with the earlier projection of $1.58-$1.61 billion. Adjusted selling, general and administrative expenses are expected in the range of $1.11-$1.14 billion, which remains unchanged.
Recent Updates
The acquisition of Escient Pharmaceuticals added EP262 and EP547 to INCY’s portfolio. EP262 is a first-in-class, potent, highly selective, once-daily small molecule antagonist of Mas-related G protein-coupled receptor X2 (MRGPRX2). The candidate is being evaluated to treat multiple mast cell-mediated diseases, including chronic inducible urticaria, chronic spontaneous urticaria and atopic dermatitis. EP547 is a first-in-class oral MRGPRX4 antagonist with the potential to treat cholestatic pruritus and other conditions with severe pruritus.
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 Halozyme Therapeutics, Inc. (HALO - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Halozyme’s 2024 earnings per share have improved from $3.69 to $3.90. Earnings per share estimates for 2025 have improved from $4.50 to $4.81. Year to date, shares of HALO have soared 50%.
HALO’s earnings beat estimates in three of the trailing four quarters and met the same on the remaining occasion, the average surprise being 9.40%.