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Incyte Corp INCY

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Maintaining Our $120 Incyte FVE Following Weak First Quarter; Rux Cream Launch a Key Catalyst

Karen Andersen, CFA Sector Strategist

Analyst Note

| Karen Andersen, CFA |

We're maintaining our $120 fair value estimate for Incyte following first-quarter results that were slightly below our expectations, reflecting continued COVID-19-related pressure on U.S. sales of hematology drug Jakafi. We think recovery in patient demand in March and management's decision to maintain prior full-year guidance for Jakafi sales bode well for growth for the remainder of the year, and we're only slightly lowering our own estimate for 2021 U.S. Jakafi sales from $2.2 billion to $2.1 billion. Sales of Jakafi in the U.S. grew 1% in the quarter to reach $466 million, as COVID-19-related stocking in the first quarter of last year and increased discounting this quarter were countered by demand growth. Incyte's total revenue grew 6%, driven by the launch of Pemazyre in cholangiocarcinoma as well as double-digit royalty growth from international sales of Jakavi (Novartis) and global sales of immunology drug Olumiant (Lilly). We think Incyte's differentiated therapy Jakafi as well as a growing portfolio in hematology and immunology continue to support a narrow moat.

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Company Profile

Business Description

Incyte focuses on the discovery and development of small-molecule drugs. The firm's lead drug, Jakafi, treats two types of rare blood cancer and graft versus host disease and is partnered with Novartis. Incyte's other marketed drugs include rheumatoid arthritis treatment Olumiant (licensed to Lilly), and oncology drugs Iclusig (chronic myeloid leukemia), Pemazyre (cholangiocarcinoma), Tabrecta (lung cancer), and Monjuvi (diffuse large B-cell lymphoma). Incyte's pipeline includes a broad array of oncology and dermatology programs.

1801 Augustine Cut-Off
Wilmington, DE, 19803
T +1 302 498-6700
Sector Healthcare
Industry Biotechnology
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Speculative Growth
Employees 1,773


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