Yahoo Finance Incyte's (INCY) Q4 Earnings, Revenues Top on Jakafi, Opzelura
Incyte Corporation’s INCY earnings and revenues beat the Zacks Consensus Estimate in the fourth quarter of 2022 on strong Jakafi and newly approved Opzelura.
The company reported adjusted earnings of 62 cents per share for the fourth quarter of 2022, beating the Zacks Consensus Estimate of 59 cents, up 10 cents from the year-ago quarter, driven by growth in Jakafi and Opzelura.
Total revenues came in at $926.7 million in the fourth quarter of 2022, increasing 7% year over year. Sales also beat the Zacks Consensus Estimate of $889.3 million.
Shares of Incyte have gained 20.4% in the past year against the industry’s decline of 9.2%.
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Quarter in Detail
Total product and royalty revenues came in at $896.7 million, up 10% 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) revenues came in at $647.5 million. The figure increased 9% from the year-ago quarter and surpassed the Zacks Consensus Estimate of $636 million, driven by growth in patient demand across all indications.
The newly approved medicine, Opzelura (ruxolitinib) cream, generated $61.3 million in sales during the fourth quarter.
In July 2022, the FDA 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 approved by the FDA for the topical short-term and non-continuous chronic treatment of mild to moderate atopic dermatitis (AD).
More than 84,000 units of Opzelura were shipped in the fourth quarter of 2022, driven by strong growth in new patient starts across AD and vitiligo, as well as broadening formulary coverage.
Net product revenues of Iclusig amounted to $27.6 million, up 2% from the year-ago quarter.
Pemazyre generated $23 million in sales during the fourth quarter, reflecting an increase of 17% year over year.
Minjuvi revenues came in at $4.8 million, up 10% from the year-ago quarter.
Jakafi is marketed by Incyte in the United States and by Novartis as Jakavi outside the country.
Jakavi’s royalty revenues from Novartis (NVS) for commercialization in ex-U.S. markets declined 5% to $91.2 million.
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 for Tabrecta.
Tabrecta’s product royalty revenues came in at $4.2 million, up 36% year over year.
Olumiant’s (baricitinib) product royalty revenues from Eli Lilly (LLY) came in at $35.9 million, down 46% year over year, impacted by a decrease in net product sales of Olumiant for use as a treatment for COVID-19.
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 R&D expenses were $469 million, up 6% from the year-ago quarter, owing to higher investments in late-stage pipeline development. SG&A expenses amounted to $253.2 million, up 21% from the prior-year quarter, due to expenses related to dermatology commercial organizations and activities to support the launch of Opzelura for the treatment of atopic dermatitis and vitiligo.
Pipeline and Regulatory Updates
The new drug application (NDA) for the ruxolitinib extended release (XR) formulation was accepted by the FDA with a target action date of Mar 23, 2023.
Incyte Corporation Price and EPS Surprise
Incyte Corporation price-eps-surprise | Incyte Corporation Quote
2022 Results
Revenues came in at $3.39 billion, up 14% from 2021, beating the Zacks Consensus Estimate of $3.36 billion. Adjusted earnings per share came in at $2.78, beating the Zacks Consensus Estimate of $2.72.
2023 Guidance
Incyte expects Jakafi revenues to be in the range of $2.53-$2.63 billion. Other Hematology/Oncology net product revenues are now projected in the range of $215-$225 million.
Our Take
Incyte reported better-than-expected results for the fourth quarter, driven by growth in patient demand for the lead drug, Jakafi, higher royalty revenues and encouraging uptake of other recently approved drugs.
Zacks Rank
Incyte currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the biotech sector is Syndax Pharmaceuticals SNDX, which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, loss estimates for Syndax for 2022 have narrowed to $2.48 from $2.53. Syndax also surpassed estimates in each of the trailing four quarters, with the average surprise being 95.39%.
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