Incyte Corporation Reports 2014 Fourth-Quarter and Year-End Financial Results, Provides 2015 Financial Guidance

Strategic Insights -

Incyte Corporation (Nasdaq: INCY) reported its 2014 fourth-quarter and year-end financial results, including revenue from its Jakafi[R] (ruxolitinib) treatment for patients with intermediate or high-risk myelofibrosis and polycythemia vera (PV). The Company provided 2015 financial guidance and highlighted recent clinical trial results, including the FDA approval of Jakafi for the treatment of patients with uncontrolled PV. The Company's President and Chief Executive Officer, Herve Hoppenot, stated that Incyte's strategy is to invest in innovative science and create new medicines that can positively impact patients' lives.

Key Takeaways:

  • Net product revenues of Jakafi for the quarter ended December 31, 2014, were $106 million, representing 46 percent growth compared to $73 million for the same period in 2013.
  • Net product revenues for the full year ended December 31, 2014, were $358 million, representing 52 percent growth compared to $235 million for the same period in 2013.
  • Research and development expenses for the quarter and full year ended December 31, 2014, were $99 million and $348 million, respectively, as compared to $75 million and $260 million, respectively, for the same periods in 2013.
  • The Company expects that Jakafi net product revenues will be in the range of $525 million to $565 million in 2015, excluding any product royalty revenues received from Novartis on sales of Jakavi.
  • The Company expects that research and development expenses will be in the range of $450 million to $500 million in 2015, including a non-cash expense of approximately $40 million to $45 million related to the impact of expensing employee equity awards.

Statistics:

  • 2014 Fourth-Quarter and Full-Year Financial Results:

+ Net product revenues: $106 million (46% growth) and $358 million (52% growth)

+ Research and development expenses: $99 million and $348 million

+ Selling, general and administrative expenses: $48 million and $166 million

+ Cash, cash equivalents, and marketable securities: $600 million as of December 31, 2014, compared to $509 million as of December 31, 2013

  • 2015 Financial Guidance:

+ Jakafi net product revenues: $525 million to $565 million

+ Research and development expenses: $450 million to $500 million

+ Selling, general and administrative expenses: $180 million to $200 million

Sources:

  • Incyte Corporation, "Incyte Corporation Reports 2014 Fourth-Quarter and Year-End Financial Results, Provides 2015 Financial Guidance" (January 2015)
  • Incyte Corporation, "Jakafi(R) (Ruxolitinib) Receives FDA Approval for the Treatment of Patients with Uncontrolled Polycythemia Vera" (December 2014)
  • Novartis AG, "Novartis gains FDA approval for Jakavi(R) (ruxolitinib) to treat adult patients with polycythemia vera" (December 2014)
  • The New England Journal of Medicine, "Ruxolitinib for Polycythemia Vera" (January 2015)