Incyte Reports 2014 Third-Quarter Financial Results and Updates Shareholders on Key Clinical Programs
$97.8 million of 2014 third-quarter net product revenues from Jakafi® (ruxolitinib), representing 63 percent growth over the same period last year- 2014 guidance for Jakafi net product revenues increased to range of
$350 million to $360 million , driven by continued strong growth in underlying demand - Two milestone payments from
Novartis earned in the third quarter, totaling$85 million - Recruitment continuing across clinical development pipeline in multiple pivotal and proof-of-concept studies
Conference Call Scheduled Today at
“The strong commercial performance of Jakafi in the U.S. speaks to the long-term potential of the product to treat patients with intermediate or high-risk myelofibrosis,” stated Hervé Hoppenot, Incyte’s President and Chief Executive Officer. “In addition, we believe we are fully prepared for the U.S. launch of ruxolitinib for patients with uncontrolled polycythemia vera, pending expected
Jakafi® is approved by the
2014 Third-Quarter Financial Results
Revenues
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The Company now expects that 2014 net product revenues from Jakafi will be in the range of
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Operating Expenses
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Interest Expense
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Net Loss/Net Income
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Cash and Marketable Securities Position
As of
Recent Clinical Highlights
Jakafi® (ruxolitinib) – a JAK1 and JAK2 Inhibitor
Myeloproliferative Neoplasms
In
In
Solid Tumors
Two pivotal double-blind, placebo-controlled Phase III trials (JANUS 1 and JANUS 2) of ruxolitinib for advanced or metastatic pancreatic cancer have been initiated and are recruiting patients. JANUS 1 is being conducted under an SPA from the
Three additional blinded Phase II proof-of-concept trials of ruxolitinib focusing on survival in non-small cell lung cancer (NSCLC), breast cancer and colorectal cancer patients with high levels of systemic inflammation are also recruiting patients.
INCB39110 – a JAK1 Inhibitor
The clinical program to evaluate INCB39110, a selective JAK1 inhibitor, in solid tumors includes one ongoing Phase I open-label safety study in combination with gemcitabine and nab-paclitaxel in various tumor types, and two blinded proof-of-concept Phase II trials in NSCLC. The first of these, a randomized, double-blind Phase II trial of INCB39110 in combination with docetaxel, was initiated in the second quarter of 2014. The second trial, in EGFR-mutated NSCLC in combination with erlotinib, is expected to be initiated later in 2014 or early in 2015. Both Phase II trials are designed with overall survival as the primary endpoint, and will only include patients with high levels of systemic inflammation.
INCB24360 – an IDO1 Inhibitor
The Company believes that the optimal development strategy for INCB24360, its IDO1 inhibitor, is for the compound to be developed in combination with other immuno-oncology agents. A Phase I/II trial to evaluate the combination of INCB24360 and Merck’s anti-PD-1 immune checkpoint inhibitor, pembrolizumab, has been initiated. This trial is recruiting patients with previously treated metastatic and recurrent NSCLC and other advanced or metastatic cancers.
A total of four clinical trial agreements have been signed to evaluate INCB24360 in combination with immune checkpoint inhibitors. As well as the agreement with Merck, the Company has signed agreements involving AstraZeneca’s investigational PD-L1 inhibitor, MEDI4736, Bristol-Myers Squibb’s investigational PD-1 inhibitor, nivolumab, and Genentech’s investigational PD-L1 inhibitor, MPDL3280A.
INCB40093 – a PI3K-delta Inhibitor
INCB40093 is being studied as both monotherapy and in combination with the Company’s JAK1 inhibitor, INCB39110, in patients with B-lymphoid malignancies.
Baricitinib – a JAK1 and JAK2 Inhibitor
The Phase III clinical program to evaluate baricitinib in patients with rheumatoid arthritis, being conducted by the Company’s collaboration partner Lilly, is ongoing. The first of four Phase III trials is expected to be reported by Lilly in late 2014 or early 2015.
INC280 – a c-MET Inhibitor
Conference Call Information
If you are unable to participate, a replay of the conference call will be available for 30 days. The replay dial-in number for
The conference call will also be webcast live and can be accessed at www.incyte.com under Investor Relations – Events and Webcasts.
About
About Jakafi® (ruxolitinib)
Jakafi is a prescription medicine approved by the
Important Safety Information
Jakafi can cause serious side effects including:
Low blood counts: Jakafi may cause your platelet, red blood cell, or white blood cell counts to be lowered. If you develop bleeding, stop taking Jakafi and call your healthcare provider. Your healthcare provider will perform blood tests to check your blood counts before you start Jakafi and regularly during your treatment. Your healthcare provider may change your dose of Jakafi or stop your treatment based on the results of your blood tests. Tell your healthcare provider right away if you experience unusual bleeding, bruising, fatigue, shortness of breath, or a fever.
Infection: You may be at risk for developing a serious infection while taking Jakafi. Tell your healthcare provider if you develop symptoms such as chills, nausea, vomiting, aches, weakness, fever, or painful skin rash or blisters.
The most common side effects of Jakafi include dizziness and headache.
These are not all the possible side effects of Jakafi. Ask your healthcare provider or pharmacist for more information. Tell your healthcare provider about any side effect that bothers you or that does not go away.
Before taking Jakafi, tell your healthcare provider about all the medications, vitamins, and herbal supplements you are taking and all your medical conditions, including if you have an infection, have or had liver or kidney problems, are on dialysis, or have any other medical condition. Take Jakafi exactly as your healthcare provider tells you. Do not change or stop taking Jakafi without first talking to your healthcare provider. Do not drink grapefruit juice while on Jakafi.
Women should not take Jakafi while pregnant or planning to become pregnant, or if breast-feeding.
Please see the Full Prescribing Information available at www.incyte.com, which includes a more complete discussion of the risks associated with Jakafi.
Forward-Looking Statements
Except for the historical information set forth herein, the matters set forth in this press release, including without limitation statements regarding financial guidance about expected net product revenues; the Company’s plans and expectations with respect to Jakafi® (ruxolitinib), including its potential efficacy and therapeutic and commercial value; the Company’s expectations regarding the
These forward-looking statements are based on the Company’s current expectations and subject to risks and uncertainties that may cause actual results to differ materially, including unanticipated developments in and risks related to the efficacy or safety of Jakafi, the acceptance of Jakafi in the marketplace, risks related to market competition, the results of further research and development, risks and uncertainties associated with sales, marketing and distribution requirements, risks that results of clinical trials may be unsuccessful or insufficient to meet applicable regulatory standards, the ability to enroll sufficient numbers of subjects in clinical trials, other market, economic or strategic factors and technological advances, unanticipated delays, the ability of the Company to compete against parties with greater financial or other resources, risks associated with the Company's dependence on its relationships with its collaboration partners, and other risks detailed from time to time in the Company’s reports filed with the
INCYTE CORPORATION |
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Condensed Consolidated Statements of Operations | ||||||||||||||||
(unaudited, in thousands, except per share amounts) |
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Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, |
September 30, |
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2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenues: | ||||||||||||||||
Product revenues, net | $ | 97,837 | $ | 60,201 | $ | 251,513 | $ | 162,589 | ||||||||
Product royalty revenues | 12,093 | 8,184 | 34,259 | 19,893 | ||||||||||||
Contract revenues | 88,214 | 16,737 | 101,643 | 75,211 | ||||||||||||
Other revenues | 3 | 1 | 107 | 182 | ||||||||||||
Total revenues | 198,147 | 85,123 | 387,522 | 257,875 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of product revenues | 221 | 155 | 576 | 463 | ||||||||||||
Research and development | 88,537 | 71,704 | 248,806 | 185,417 | ||||||||||||
Selling, general and administrative | 39,446 | 26,447 | 117,320 | 71,956 | ||||||||||||
Total costs and expenses | 128,204 | 98,306 | 366,702 | 257,836 | ||||||||||||
Income (loss) from operations | 69,943 | (13,183) | 20,820 | 39 | ||||||||||||
Interest and other income, net | 885 | 385 | 2,410 | 829 | ||||||||||||
Interest expense | (11,463) | (7,699) | (34,312) | (29,720) | ||||||||||||
Debt exchange expense | - | (1,491) | (265) | (11,262) | ||||||||||||
Income (loss) before income taxes | 59,365 | (21,988) | ) | (11,347) | ) | (40,114) | ||||||||||
Provision for income taxes | 72 | 49 | 191 | 162 | ||||||||||||
Net income (loss) | $ | 59,293 | $ | (22,037) | $ | (11,538) | $ | (40,276) | ||||||||
Net income (loss) per share | ||||||||||||||||
Basic | $ | 0.35 | $ | (0.14) | $ | (0.07) | $ | (0.28) | ||||||||
Diluted | $ | 0.33 | $ | (0.14) | $ | (0.07) | $ | (0.28) | ||||||||
Shares used in computing basic and diluted net income (loss) per share | ||||||||||||||||
Basic | 168,592 | 155,067 | 167,288 | 143,899 | ||||||||||||
Diluted | 189,046 | 155,067 | 167,288 | 143,899 | ||||||||||||
INCYTE CORPORATION | ||||||||
Condensed Consolidated Balance Sheet Data | ||||||||
(in thousands) |
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September 30, | December 31, | |||||||
2014 |
2013 |
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(unaudited) | ||||||||
Cash, cash equivalents, and short-term marketable securities | $ | 532,359 | $ | 509,004 | ||||
Accounts receivable, net | 109,599 | 35,374 | ||||||
Total assets | 785,265 | 629,568 | ||||||
Convertible senior notes(1) | 681,313 | 661,567 | ||||||
Total stockholders’ deficit | (89,591) | (193,108) | ||||||
(1) Net of unamortized debt discount of
Source:
Incyte Corporation
Pamela M. Murphy
Vice President, Investor Relations & Corporate Communications
302-498-6944