) third-quarter 2012 loss of 17 cents per share was narrower than
the year-ago loss of 42 cents per share and the Zacks Consensus
Estimate of a loss of 22 cents per share. The narrower loss was
attributable to higher revenues recorded in the third quarter of
Total revenues in the reported quarter jumped to $60.5 million
from $16.8 million in the year-ago quarter. Revenues were boosted
by the presence of Jakafi sales. Jakafi, Incyte's sole marketed
product, was launched in the US in November 2011, for treating
patients suffering from intermediate or high-risk myelofibrosis
(MF). Revenues barely missed the Zacks Consensus Estimate of $61
Total revenues comprised net product revenues, contract
revenues and other revenues.
Incyte recorded net product revenues of approximately $43.7
million from Jakafi sales in the drug's third full quarter in the
market. Jakafi sales were up more than 47.1% sequentially.
Incyte has a collaborative agreement with
) to market Jakafi outside the US. The drug is now approved by
the European Commission to treat adults suffering from primary
MF, post-polycythemia vera MF or post-essential thrombocythemia
We note that Jakafi is being studied for additional
indications as well. Novartis is currently evaluating Jakafi in
two phase III clinical trials on the drug, for the treatment of
patients suffering from polycythemia vera (PV). The company
expects to submit a supplemental new drug application in
Jakafi is also being evaluated in a phase II trial in
Roche Holding AG
) Xeloda for the treatment of refractory metastatic pancreatic
cancer. Final results from the study are expected in the second
half of 2013.
Contract revenues remained flat year over year at $16.7
million. Other revenues were $60 million, up 33.3% from the
Both research and development (R&D) expenses (up 12.3% to
$50.1 million) and selling, general and administrative (SG&A)
expenses (up 43.7% to $20.5 million) climbed up during the
quarter. Incyte's efforts to develop its pipeline were primarily
responsible for the rise in R&D expenses in the third quarter
of 2012. Higher costs related to the marketing of Jakafi were
primarily responsible for pushing the SG&A costs up.
Apart from disclosing its financial results, Incyte also
provided guidance for 2012. The company narrowed its guidance for
Jakafi sales to the range of $130-$135 million from the previous
range of $120 - $135 million.
We believe that investor focus will be on the market
performance of Jakafi going forward. Currently, we have a Neutral
stance on Incyte in the long run. The stock carries a Zacks #3
Rank (Hold rating) in the short run.
INCYTE CORP (INCY): Free Stock Analysis
NOVARTIS AG-ADR (NVS): Free Stock Analysis
(RHHBY): ETF Research Reports
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