Why Are Incyte Shares Trading Lower Today?

Incyte Corporation's INCY Q4 adjusted EPS reached $0.10, compared to $0.93 posted a year ago. Analysts had estimated $0.86. 

• Sales increased 9.3% Y/Y to $862.85 million, ahead of the consensus of $813.40 million.
• The Company's operating expenses increased 20.3% to $752.12 million, with the cost of sales up 21%, R&D costs up 16%, and SG&A costs up 35%.
• The Company reported an operating income of $166.01 million, compared to $218.47 million posted a year ago.
• Product and royalty revenues increased 20% Y/Y to $812.85 million, driven by Jakafi and Pemazyre net product revenues and higher product royalty revenues from Olumiant and Tabrecta. 
• The 113% growth in Olumiant royalty revenues reflects an increase in net product sales due to the use of Olumiant for COVID-19.
• In October, Incyte launched its first dermatology product with the FDA approval of Opzelura for atopic dermatitis. Nearly 19,000 new patients started Opzelura in the fourth quarter.
• Cash, cash equivalents, and marketable securities totaled $2.3 billion.
• Guidance: Incyte expects FY22 Jakafi net product revenues at $2.3 billion - $2.4 billion and other Hematology/Oncology net product revenues of $210 million - $240 million.
• Price Action: INCY shares traded 4.46% lower at $70.08 on the last check Tuesday.