Company Reports

Incyte reported total net sales of $1.49 billion in the second quarter, an increase of 40% from the prior year. Management raised its 2026 total net sales guidance by 7% at the midpoint of its previous outlook.

Incyte built a solid foundation over the past decade with its flagship hematology drug Jakafi, and the approval of the same active ingredient (ruxolitinib) as dermatology drug Opzelura is expanding the firm's focus to new therapeutic areas. We think the strategy to find more effective combination therapies in hematology and build a larger oncology and dermatology portfolio is solid, although we're waiting for key data before assuming the firm can grow significantly through Jakafi's patent expiration in 2028.

Incyte reported net sales of $1.1 billion, up 20% from the prior year period. Management reiterated its 2026 guidance of net sales of $4.85 billion at the midpoint, up 11% from 2025. Key dermatology drug Opzelura generated sales of $143 million in the quarter, up 20% year over year.

Incyte reported total net product revenue of $4.35 billion in 2025, a 20% increase from the prior year. Management expects 2026 net sales of about $4.85 billion at the midpoint, up more than 11%. Key dermatology drug Opzelura is guided to grow only 13% at the midpoint, and shares fell 8% on Feb. 10.

Incyte built a solid foundation over the past decade with its flagship hematology drug Jakafi, and the approval of the same active ingredient (ruxolitinib) as dermatology drug Opzelura is expanding the firm's focus to new therapeutic areas. We think the strategy to find more effective combination therapies in hematology and build a larger oncology and dermatology portfolio is solid, although we're waiting for key data before assuming the firm can grow significantly through Jakafi's patent expiration in 2028.

Incyte reported $1.37 billion in third-quarter revenue, a 20% increase from the prior-year period. Management raised its revenue guidance by 1.2% at the midpoint for its leading hematology drug, Jakafi. New CEO Bill Meury outlined plans to streamline Incyte's pipeline and costs.

Incyte reported 16% revenue growth in the second quarter. Management raised its revenue guidance by 1.7% at the midpoint for its leading hematology drug, Jakafi, which accounted for 63% of quarterly revenue. Investors reacted favorably and sent the stock up 10%.

Incyte reported first-quarter revenue in line with our expectations, with total revenue of $1.05 billion up 20% year over year. Management slightly increased its guidance by about 1% at the midpoint for its leading hematology drug, Jakafi (for the treatment of myelofibrosis and polycythemia vera). We forecast total company sales in 2025 will reach $4.7 billion, representing nearly 12% growth year over year, and we maintain our fair value estimate of $71 per share.

Incyte reported 2024 revenue of $4.2 billion, representing growth of 15% year over year. Despite the healthy growth, Incyte provided guidance for leading drugs, Jakafi and Opzelura, that were below expectations. Management expects sales of the hematology drug Jakafi to be between $2.925 billion and $2.975 billion for 2025, and sales guidance for the dermatology drug Opzelura is between $630 million and $670 million. We are lowering our fair value estimate to $71 per share from $88 due to a softer near-term outlook and the impact of Jakafi’s 2028 patent loss on Incyte’s portfolio during our 10-year forecast period.

Incyte has built a solid foundation over the past decade with hematology drug Jakafi, and the approval of the same active ingredient as dermatology drug Opzelura is expanding the firm's focus to new therapeutic areas. We think the strategy to find more effective combination therapies in hematology and build a larger oncology and dermatology portfolio is solid, although we're waiting for key data before assuming the firm can grow significantly through Jakafi's patent expiration in 2028.

Incyte has build a solid foundation over the past decade with hematology drug Jakafi, and the approval of the same active ingredient as oral dermatology drug Opzelura is expanding the firm's focus to new therapeutic areas. We think the strategy to find more effective combination therapies in hematology and build a larger oncology and dermatology portfolio is solid, although we're waiting for key data before assuming the firm can grow through Jakafi's patent expiration in 2028.

We’re maintaining our $88 fair value estimate for Incyte following two pieces of disappointing information for the firm’s dermatology pipeline. Enrollment in a phase 2 trial for MRGPRX2 in chronic spontaneous urticaria has been paused following findings in preclinical toxicology data that likely add uncertainty to the drug’s potential safety profile. In addition, a phase 2 trial for MRGPRX4 in cholestatic pruritus did not support advancement in this indication. However, it is unclear if this was due to lackluster efficacy or safety concerns. Both drug candidates were acquired with Escient Pharmaceuticals earlier this year, and both represented potentially novel oral treatments that could launch later this decade. Incyte is focused on bringing new drugs to market by the end of the decade, as this could help defend from the upcoming 2028 patent cliff for key hematology drug Jakafi. However, we had only included a small placeholder for sales of these drug candidates in our model, ahead of proof-of-concept data anticipated in 2025. We have removed both drug candidates from our forecast, but we continue to think Incyte’s portfolio—led by Jakafi and dermatology drug Opzelura—supports a narrow moat.

Narrow-moat Incyte reported robust third-quarter results in line with our expectations. We are maintaining our $88 fair value estimate and continue to think that the market is underappreciating the firm's potential to grow past Jakafi's patent expiration in 2028. Despite the stock's 12% rally today, we view Incyte's shares as moderately undervalued.

Incyte has build a solid foundation over the past decade with hematology drug Jakafi, and the approval of the same active ingredient as oral dermatology drug Opzelura is expanding the firm's focus to new therapeutic areas. We think the strategy to find more effective combination therapies in hematology and build a larger oncology and dermatology portfolio is solid, although we're waiting for key data before assuming the firm can grow through Jakafi's patent expiration in 2028.

We're maintaining our $88 fair value estimate for Incyte following a solid quarter and continued progress in the firm's pipeline. Incyte reported 9% revenue growth in the second quarter, driven mostly by 3% growth in US sales of hematology drug Jakafi and 52% growth for dermatology drug Opzelura. Incyte's decision to discontinue several early-stage oncology programs due to the competitive landscape appears wise, as it saves cash for accelerating development of more novel programs. We think Incyte's innovation in both hematology and immunology help support its narrow moat and that the market is failing to properly value the firm's potential to grow past Jakafi's patent expiration in 2028. Management cited 10 potential "high-impact" launches by 2030, and data from several early programs expected by the end of 2025 could bring upside to our fair value estimate.

Incyte’s first-quarter results put the firm on track to meet our expectations for the full year, and we’re not making any changes to our $88 fair value estimate. While sales of hematology drug Jakafi in the US fell 1% to $572 million, this was due to do a $55 million inventory reduction, and demand growth remains on track in the midsingle digits. Sales of dermatology drug Opzelura grew to $86 million as atopic dermatitis and vitiligo launches continue in the US and begin in Europe, which helped support Incyte’s overall top-line growth of 9% in the quarter. We think the market underappreciates Incyte’s potential to both refresh its hematology portfolio with new targeted therapies and combination regimens and also build a successful dermatology business with Opzelura and pipeline drugs like povorcitinib and new oral drug candidates from the pending acquisition of Escient Pharmaceuticals. We think Incyte’s strong foundation with Jakafi and Opzelura as well as a growing late-stage pipeline support its narrow moat.

Incyte’s product and royalty revenue grew 13% in the fourth quarter, with hematology drug Jakafi (sales up 7% in the U.S.) and dermatology drug Opzelura (78% growth) standing out as the biggest drivers of growth. These results and 2024 guidance are both relatively in line with our expectations, and we’re maintaining our $88 per share fair value estimate. We see shares as undervalued, with the market failing to recognize the potential in Incyte’s pipeline. Incyte ended the year with $3.7 billion in cash, which it could also use to supplement its portfolio with bolt-on acquisitions as the Jakafi patent expiration in 2028 starts to enter the radar of investors. We think the firm’s Jakafi franchise, as well as new launches like Opzelura, secure Incyte a narrow moat.

Incyte’s total revenue grew 12% in the third quarter, driven by hematology drug Jakafi and topical autoimmune disease drug Opzelura. Management largely maintained its guidance for the full year, only slightly narrowing Jakafi U.S. sales guidance to a range of $2.59 billion-$2.62 billion. We maintain our $88 per share fair value estimate, and shares look undervalued, as we think the market is failing to recognize potential in Incyte’s pipeline. Incyte ended the quarter with $3.5 billion in cash, which it could also use to supplement its portfolio with bolt-on acquisitions as the Jakafi patent expiration in 2028 starts to enter the radar of investors. We think the firm’s Jakafi franchise as well as new launches like Opzelura secure Incyte a narrow moat.

We’re maintaining our $88 fair value estimate for Incyte following a strong second-quarter performance, particularly for two key drugs in the firm’s portfolio. Incyte reported 25% product revenue growth, with sales of hematology drug Jakafi growing 14% to more than $682 million and the Opzelura launch in atopic dermatitis and vitiligo resulting in sales surpassing $80 million. Management tightened its 2023 Jakafi U.S. sales guidance to the high end of the previous range ($2.58 billion-$2.63 billion); our estimate sits at $2.63 billion. While inventory drove some of the strong Jakafi sales, demand is still growing well, and the launch of GSK’s potentially competing myelofibrosis drug has been delayed probably until the fourth quarter. While Incyte’s regulatory delays with its once-daily version of Jakafi have been disappointing, we expect the firm to still easily launch the drug ahead of the 2028 patent expiration for twice-daily Jakafi. We see more uncertainty around potential single-tablet regimens combining Jakafi with other drugs to improve efficacy, although we think the firm’s ALK2 inhibitor has potential in first-line myelofibrosis, if data continues to improve with dose escalation. We think the shares look slightly undervalued at recent prices. We’re bullish on the firm’s potential to expand further into immunology as Opzelura launches in multiple indications and geographies and pipeline drug povorcitinib advances in trials. We think the Jakafi franchise as well as new launches like Opzelura secures Incyte a narrow economic moat.

Incyte has build a solid foundation over the past decade with hematology drug Jakafi, and the approval of the same active ingredient as oral dermatology drug Opzelura is expanding the firm's focus to new therapeutic areas. We think the strategy to find more effective combination therapies in hematology and build a larger oncology and dermatology portfolio is solid, although we're waiting for key data before assuming the firm can grow through Jakafi's patent expiration in 2028.