Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Incyte Corporation (INCY) Earnings Cruise on Jakafi Growth

Incyte Corporation (NASDAQ:INCY)Budding biotech company Incyte Corporation (NASDAQ:INCY), which specializes in developing novel JAK inhibitors, released solid second-quarter earnings on Wednesday. The company grew revenue and added to its cash position thanks to strong demand for Jakafi — an oral JAK1 and JAK2 inhibitor developed with Novartis AG (ADR) (NYSE:NVS) that’s approved to treat myelofibrosis. Management even raised its revenue guidance for the treatment from $210 million-$225 million to $220 million-$230 million. It is great to see success for Incyte Corporation (NASDAQ:INCY)’s marketed therapy, but most of the potential for shareholders lies in the pipeline. Are investors any closer to gauging the success of mid- to late-stage trials?

Financially speaking…
First things first. Incyte Corporation (NASDAQ:INCY) notched some impressive growth last quarter compared to the prior-year period.

2Q13 2Q12 % Growth
Jakafi net sales $54.1 million $29.7 million 82.2%
Total revenue $101.7 million $86.5 million 17.6%
International royalties $5.8 million $0
Net income ($0.02) $0.03

Source: Company release.

The only noticeable blemish above is net income, which swung $6.6 million from last year. In my opinion, it is a marginal data point for a company that is still largely in development mode. For instance, consider that a large chunk of Incyte Corporation (NASDAQ:INCY)’s revenue came from research collaborations with Novartis AG (ADR) (NYSE:NVS). A total of $41.7 million exchanged hands from contract revenues in the second quarter this year — compared to $56.7 million last year. A profitable future surely awaits investors should the company be successful in expanding indications for Jakafi and gaining approval for compounds in the pipeline.

Clinical updates
It is still a bit early, but Incyte Corporation (NASDAQ:INCY) has one heck of a pipeline under development. In a few years the company could have nearly 10 phase 3 trials ongoing! Better yet, it probably wouldn’t take many approvals to boost the company’s valuation from a relatively lowly $3.3 billion today. Here’s how the pipeline stacks up as of Aug. 1.

With a pipeline like that, it should be no surprise that Incyte Corporation (NASDAQ:INCY) spent most of its conference call giving clinical trial updates. You can get the full list in the company’s press release, but here are some important highlights:


  • The phase 3 COMFORT-II trial demonstrated improved overall survival for myelofibrosis patients taking Jakafi compared to the next best treatment option.
  • The phase 3 RESPONSE trial evaluating the drug in patients with polycythemia vera (PV) is expecting data in early 2014 and a potential new drug application submission by the first half of 2014.
  • Top-line results for a phase 2 trial evaluating the drug in patients with pancreatic cancer are expected in the current quarter of this year.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.