) reported a loss of 12 cents per share in the first quarter of
2013, narrower than the loss of 13 cents hinted by the Zacks
Consensus Estimate. The company's first quarter 2013 loss was
also narrower than the year-ago loss of 36 cents per share. The
narrower loss during the period was attributed to higher
Quarter in Detail
Total revenues in the reported quarter jumped to $71.1 million
from $36.2 million in the year-ago quarter. Revenues were boosted
by the increase in Jakafi sales. Jakafi, Incyte's sole marketed
product, was launched in the US in Nov 2011, for treating
patients suffering from intermediate or high-risk myelofibrosis
(MF). Revenues were however short of the Zacks Consensus Estimate
of $80 million.
Total revenues comprised net product revenues, royalty
revenues, contract revenues and others.
Incyte recorded net product revenues of approximately $48.3
million from Jakafi sales in the first quarter of 2013. The
company recorded $19.3 million as net product sales of Jakafi in
the year-ago period. Revenues from the drug were up 11.5%
Incyte has a collaborative agreement with
) to market Jakafi outside the US. The drug is also 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 (RESPONSE and RELIEF), for the
treatment of patients suffering from polycythemia vera (PV). The
company intends to submit a supplemental new drug application for
Jakafi in the PV indication in the first half of 2014.
Jakafi is also being evaluated in a phase II trial in
) Xeloda for the treatment of refractory metastatic pancreatic
cancer. Final results from the study are expected in the latter
half of this year.
Incyte's product royalty revenues came in at $5.9 million
during the reported quarter. Contract revenues remained flat at
$16.7 million during the quarter. Other revenues were $142,000,
down 12.9% from the year-ago quarter.
Both research and development (R&D) expenses (up 7.8% to
$52.8 million) and selling, general and administrative (SG&A)
expenses (up 4.0% to $22.3 million) climbed during the quarter.
Incyte's efforts to develop its pipeline were primarily
responsible for the rise in R&D expenses in the first quarter
of 2013. Higher costs related to the marketing of Jakafi were
primarily responsible for pushing the SG&A costs up.
Incyte maintained its revenue guidance for 2013. The company
still expects to generate total revenues from net product sales
of Jakafi in the range of $210-$225 million in 2013. The net
sales guidance excludes any product royalty revenues received
from Novartis on sales of Jakavi.
We are encouraged by the strong Jakafi sales during the first
quarter of 2013. Incyte also has a robust pipeline. Successful
development and commercialization of these candidates should
drive growth at the company.
Incyte, a biopharma company, currently carries a Zacks Rank #2
(Buy). Other biopharma stocks such as
) also carry a comparable rank.
INCYTE CORP (INCY): Free Stock Analysis
MEDIVATION INC (MDVN): Free Stock Analysis
NOVARTIS AG-ADR (NVS): Free Stock Analysis
ROCHE HLDG LTD (RHHBY): Get Free Report
To read this article on Zacks.com click here.