Incyte reports second-quarter loss despite strong revenue

Incyte Corporation today reported a $12 million net loss for the fourth quarter, compared to net income of $34 million for the same period in 2016. That’s a per-share loss of 6 cents for the specialty drug maker.

The company reported strong second-quarter revenue growth driven by increased sales of Jakafi in the U.S. and Iclusig in Europe, and royalties from sales of Jakavi by Novartis and Olumiant by Lilly.

“Revenue growth from Jakafi and Iclusig continues to be very robust, driven by strong demand, and we have also made significant progress across our clinical portfolio. As we look forward to the second half of 2017, we anticipate the publication of important data from our development candidates, as well as the initiation of multiple additional pivotal combination studies with epacadostat,” CEO Hervé Hoppenot said. “With strong revenue growth, a broad clinical development portfolio, comprehensive drug discovery capabilities and an expanded geographic footprint which now includes the U.S., Europe and Japan, we believe that we are well positioned for long-term value creation.”

Jakafi net product revenues were $276 million in the second quarter, up $68 million over the same period last year. In the same quarter, net product revenues for Iclusig were $16 million, quadruple the $4 million revenue for the same period last year.

For the quarter ended June 30, product royalties from sales of Jakavi, which has been out-licensed to Novartis outside of the United States, were $34 million, as compared to $26 million in the second quarter of last year.

Second quarter total revenues were $326 million as compared to $246 million for the same period in 2016.

However, research and development expenses for the quarter were $202 million, as compared to $120 million for the second quarter of 2016. The increase in research expenses was primarily due to the expansion of the company’s clinical portfolio and $209 million related to collaboration and license agreements with Agenus, Calithera and Merus.

Recent highlights for the company include the initiation of two pivotal studies, one for use of ruxolitinib for treatment-refractory chronic graft-versus-host disease and one for use of itacitinib for steroid-naïve acute graft-versus-host disease.

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