INCY - Incyte trades lower as profit falls tightens Jakafi outlook on strong Q1 sales

2023-05-02 07:46:25 ET

Incyte ( NASDAQ: INCY ) stock was trading in the red premarket on Tuesday after Q1 results missed estimates, but the company tightened its 2023 net product revenues outlook for bone marrow cancer drug Jakafi.

Adjusted EPS declined -32.7% to $0.37, while total revenue grew +10.3% Y/Y to $808.67M. But both top and bottom line fell short of analysts' expectations.

Jakafi (ruxolitinib) net product revenue increased +7% Y/Y to $579.97M, driven by strong underlying patient demand growth (+7% Y/Y) including an 8% growth in new patients. Total patients grew across myelofibrosis (MF) — a type of bone marrow cancer, polycythemia vera (PV) and graft-versus-host disease (GVHD), according to the company.

Incyte noted that net product revenues were unfavorably impacted by higher gross-to-net deductions, compared to Q4 2022, because of the Medicare coverage gap and higher commercial patient deductibles at the starting of the plan year, plus an increase in 340B orders. The drug's net revenue were also impacted by lower than normal levels of channel inventory at the end of Q1, representing an $11M impact.

Net revenue of Bile duct cancer drug Pemazyre grew +25% Y/Y to ~$22.48M. Leukemia therapy Iclusig sales increased +6% Y/Y to ~$27.69M.

Net revenue of Vitiligo therapy Opzelura increased +343% Y/Y to $56.55M. Meanwhile, net revenue of Minjuvi increased +46% Y/Y to ~$6.56M.

Total royalty revenues — which was from Jakavi, Olumiant, Tabrecta and Pemazyre — fell 6% Y/Y to ~$115.44M.

Program Updates :

The U.S. Food and Drug Administration (FDA) rejected approval of ruxolitinib extended-release(XR) tablets for once-daily use to treat certain types of MF, PV and GVHD. Incyte noted that will work with the FDA to decide appropriate next steps.

Outlook :

Incyte said it is tightening its full year 2023 outlook for Jakafi net product revenues due to strong Q1 performance.

The company now expects Jakafi net revenues to be between $2.55B and $2.63B, compared to prior range of $2.53B to $2.63B.

INCY -1.78% to $74 premarket May 2

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