Incyte Corporation (INCY)

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How Incyte’s Jakafi Performed in 3Q17

By Mike Benson
Jan 9, 2018 | 9:23 AM

Incyte’s (INCY) oncology drug Jakafi (ruxolitinib) is approved for the treatment of myelofibrosis and polycythemia vera, two rare types of blood cancer.

Chart - 005 (click link below for chart)

The chart above compares the revenues for Jakafi over the last few quarters.

Jakafi and its importance
Incyte’s team sells the drug Jakafi in US markets, while the development and commercialization rights for Jakafi are licensed to Novartis (NVS) outside US markets. Novartis markets Jakafi under the brand name Jakavi outside US markets.

Jakafi is the first oral JAK inhibitor approved by the FDA, and it’s also the first drug approved by the FDA from Incyte’s portfolio. Jakafi’s patent rights for the composition of matter and the use of the drug are valid up to November 2026, and Incyte has also received an extension on these patents up to late 2027.

Jakafi’s revenue

In 3Q17, Jakafi saw revenue of $303.9 million compared to $223.9 million in 3Q16 resulting from its strong sales in US markets. For the first nine months of 2017 (which ended on September 30, 2017), Jakafi brought in revenue of $831.0 million. Analysts expect Jakafi’s sales to cross $1.0 billion in 2017.

Incyte reported royalty revenue of $41.3 million from Novartis for Jakavi sales in 3Q17. For the first nine months of 2017, its royalty revenue from Novartis was $104.0 million.

(click link below for chart)

The iShares S&P 500 Growth ETF (IVW) holds 15.5% of its total investments in healthcare companies. IVW holds 0.1% in Incyte, 1.7% in Johnson & Johnson (JNJ), 0.8% in Pfizer (PFE), and 0.6% in Amgen (AMGN).

6
Incyte’s Collaborations and Developments in 4Q17

By Mike Benson
Jan 9, 2018 | 9:23 AM

Incyte’s Jakafi and its collaborations
Incyte (INCY) has a well-established distribution network in the United States and sells its products Jakafi and Iclusig in the country through its own network.

However, outside US markets, the company has entered into an agreement with Novartis to develop and commercialize Jakafi. Novartis sells Jakafi under the name Jakavi, and Incyte receives royalties on Jakavi’s total sales.

Chart - 006 (click link below for chart)

The chart above compares Incyte’s royalty revenues and contract revenues over the last few quarters.

Recent developments
A few recent developments for Incyte include the following:

On December 10, 2017, Incyte released the 208-week (or four-year) follow-up data for its RESPONSE Study, a Phase 3 study evaluating Jakafi (ruxolitinib) for the treatment of patients with polycythemia vera who are resistant to hydroxyurea. The data show the durability of the response of Jakafi in treating polycythemia vera.
On November 15, 2017, Incyte announced the initiation of the RESET study, a double-blind, randomized, double-dummy pivotal study evaluating Jakafi in comparison to anagrelide in treating patients with essential thrombocythemia.

On October 31, 2017, Incyte announced the expansion of its collaboration with MedImmune, the global biologics research and development arm of AstraZeneca (AZN), to evaluate the efficacy and safety of Incyte’s epacadostat with AstraZeneca’s Imfinzi (durvalumab) for the treatment of patients with locally advanced non-small cell lung cancer.

On October 25, 2017, Incyte announced its collaboration with MacroGenics (MGNX) for MGA012, the investigational monoclonal antibody developed by MacroGenics. While Incyte received the exclusive worldwide rights for developing and commercializing MGA012 for all indications, MacroGenics retained the right to develop its pipeline in combination with MGA012.
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http://marketrealist.com/2018/01/incytes-collaborations-developments-4q17

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