Incyte Clocks Mixed Q3 Earnings, But Analyst Sees A Strong Quarter For Jakafi And Opzelura

On Tuesday, Incyte Corporation INCY reported third-quarter revenue of $1.14 billion, up 24% year over year and beating the consensus of $1.08 billion.

The company reported adjusted EPS of $1.07, down from $1.10 a year ago and missing the consensus estimate of $1.09.

Jakafi (ruxolitinib) net product revenues increased to $741.18 million, up 16% year over year, primarily due to a 10% increase in total demand.

Channel inventory at the end of the third quarter of 2024 was within the normal range.

For the quarter ended September 30, total royalty revenues grew by 20%, driven by 20% and 17% growth in Jakavi and Olumiant royalty revenues, respectively.

Also Read: Incyte Downgraded – Analyst Notes Intense Competition, Particularly In Larger Markets

Opzelura (ruxolitinib) net product revenues reached $139 million, up 52%,  due to continued growth in new patient starts and refills in the U.S. and increased contribution from Europe, driven by continued uptake in Germany and the launch in France.

Guidance: Incyte forecasts 2024 Jakafi revenue of $2.74 billion—$2.77 billion, up from prior guidance of $2.71 billion—$2.75 billion.

William Blair analyst writes, "This marks another strong quarter for both of the company's key products, Jakafi and Opzelura."

William Blair says that Jakafi is maintaining consistent growth, addressing a significant worry for investors amid heightened competition in the myelofibrosis market.

The company's move to increase its guidance should alleviate concerns about competition posing a serious challenge.

The analyst adds, "We continue to see steady growth of Jakafi in approved indications and believe that ongoing studies for lifecycle management could provide upside to current peak sales and offer the potential to extend Jakafi franchise exclusivity. We believe that Opzelura should provide Incyte with an additional meaningful commercial opportunity in large immune dermatological indications."

Price Action: INCY stock is up 10.10% at $72.33 at the last check on Tuesday.

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