Incyte Surges Past Expectations With Strong Q2, Boosts Guidance On Jakafi Demand

Incyte Corporation (NASDAQ:INCY) reported on Tuesday that its second-quarter revenue was $1.22 billion, up 16% year over year. The company beat the consensus of $1.15 billion.

Incyte’s adjusted earnings were $1.57 per share. That’s a turnaround from a loss of $1.82 a year ago and beating the consensus estimate of $1.41.

The company’s Q2 results reflect “strong growth,” said Incyte CEO Bill Meury. Jakafi (ruxolitinib), Opzelura (ruxolitinib) cream, and Niktimvo (axatilimab) position the company to deliver on 2025 objectives, he added.

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• Jakafi’s net product revenue increased 8% to $764 million, driven by an increase in paid demand of 8% reflecting continued demand growth in all indications.
• Opzelura net product revenue increased 35% to $164 million, driven by increased patient demand and refills in both atopic dermatitis (AD) and vitiligo.
• Minjuvi/Monjuvi net product revenue remained almost stagnant at $31.13 million.

In June, the U.S. Food and Drug Administration (FDA) approved Monjuvi (tafasitamab-cxix) in combination with rituximab and lenalidomide for adult patients with relapsed or refractory follicular lymphoma.

Guidance: Incyte is raising its revenue guidance for Jakafi to account for higher demand in the first half of 2025. 

The company expects 2025 Jakafi net product revenues of $3 billion—$3.05 billion, compared to prior guidance of $2.95 billion—$3 billion.

Incyte is also raising its revenue guidance for other oncology products to reflect the strength of the Niktimvo launch, higher demand for Zynyz in the first half of the year, and the positive impact of foreign currency exchange rates.

The company expects other oncology net product revenues of $500 million—$520 million, up from prior guidance of $415 million—$455 million.

Opzelura’s sales guidance remains unchanged at $630 million—$670 million. The company sees Opzelura as a double-digit CAGR business in the U.S. and internationally over the next several years.

During an earnings conference call, Incyte said inventory accounts for less than 5% of the second quarter sales and is stabilizing in the expected range.

Reuters cites Incyte’s CEO as saying the company has several important product launches planned between now and 2030. The company also added that it is focused on transitioning to a new set of durable product growth drivers by 2029.

William Blair said, “While the near-term steady growth of Jakafi in approved indications provides meaningful cash flow, the loss of exclusivity at the end of 2028 remains the focus for investors.”

Analyst Matt Phipps says that setbacks in clinical trials for the drugs Incyte got from Escient, along with underwhelming results for povorcitinib in treating hidradenitis suppurativa, have taken away important chances for the company to shift its story toward new product launches.

William Blair rates Incyte stock at Market Perform.

Additional success with Opzelura in ongoing studies, povorcitinib in additional indications, or the earlier-stage myeloproliferative neoplasm pipeline can potentially provide longer-term upside.

In June, the FDA extended the review period for the supplemental New Drug Application for ruxolitinib cream (Opzelura) for children 2-11 years old with mild to moderate atopic dermatitis (AD). The Prescription Drug User Fee Act (PDUFA) action date has been extended by three months to September 19.

William Blair writes that the near-term clinical readouts will be insufficient to change investor sentiment.

Price Action: INCY stock is up 6.15% at $74.47 at the last check on Tuesday.

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