Incyte Corporation (INCY) delivered impressive third-quarter results, reporting revenue of $1.14 billion, a 24% year-over-year increase that surpassed analyst estimates of $1.08 billion. The company’s flagship drug, Jakafi (ruxolitinib), continued its stellar performance, generating net product revenues of $741.18 million, up 16% year-over-year, primarily fueled by a 10% surge in overall demand.
Incyte’s positive momentum extended beyond the current quarter, with the company projecting 2024 Jakafi revenue to reach $2.74 billion to $2.77 billion, a significant increase from its prior guidance of $2.71 billion to $2.75 billion. This optimistic outlook for Jakafi, along with the company’s promising pipeline, has caught the attention of analysts.
BofA Securities analyst upgraded Incyte’s stock from Neutral to Buy, citing the strong demand for Jakafi and the reduced risk of market share erosion from emerging competitors in the myelofibrosis market. The analyst also expressed confidence in Incyte’s pipeline, highlighting several pivotal readouts expected in 2025, which could potentially offset the anticipated loss of exclusivity for Jakafi in 2028.
The analyst was particularly encouraged by the continued growth of Opzelura, Incyte’s treatment for atopic dermatitis, with potential for expansion into the pediatric market (approval anticipated in the second half of 2025). The analyst’s updated model projects peak sales for Jakafi at $3.2 billion, a substantial increase from their previous estimate of $2.8 billion. Furthermore, they have raised estimates for Opzelura, anticipating strong growth driven by the pediatric atopic dermatitis market and robust demand in the European Union, now forecasting peak sales of $1.7 billion.
Incyte’s strong third-quarter performance and positive outlook for Jakafi and its pipeline have clearly resonated with investors, as INCY stock closed higher by 0.45% to $73.93 on Wednesday. The company’s commitment to innovation and its growing portfolio of therapies position it well for continued success in the future.
