0000879169-23-000025 | 10-Q | XBRL Viewer

Accrued and Other Current Liabilities (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of accrued and other current liabilities

Accrued and other current liabilities consisted of the following (in thousands):


	June 30, 2023		December 31, 2022
Royalties	$	321,816	$	263,466
Clinical related costs	137,780		130,570
Sales allowances	224,474		192,133
Sales and marketing	29,006		31,149
Construction in progress	4,420		3,493
Operating lease liabilities	7,084		8,195
Other current liabilities	86,272		72,047
Total accrued and other current liabilities	$	810,852	$	701,053

Inventory

6 Months Ended

Jun. 30, 2023

Inventory Disclosure [Abstract]

Inventory

Note 6. Inventory

Our inventory balance consists of the following (in thousands):


	June 30, 2023		December 31, 2022
Raw materials	$	32,630	$	31,874
Work-in-process	122,971		54,455
Finished goods	22,384		34,630
Total inventory	$	177,985	$	120,959

Inventories, stated at the lower of cost and net realizable value, consist of raw materials, work in process and finished goods. At June 30, 2023, $35.9 million of inventory was classified as current on the condensed consolidated balance sheet as we expect this inventory to be consumed for commercial use within the next twelve months. At June 30, 2023, $142.0 million of inventory was classified as non-current on the condensed consolidated balance sheet as we did not expect this inventory to be consumed for commercial use within the next twelve months. We obtain some inventory components from a limited number of suppliers due to technology, availability, price, quality or other considerations. The loss of a supplier, the deterioration of our relationship with a supplier, or any unilateral violation of the contractual terms under which we are supplied components by a supplier could adversely affect our total revenues and gross margins.

We capitalize inventory after regulatory approval as the related costs are expected to be recoverable through the commercialization of the product. Costs incurred prior to regulatory approval are recorded as research and development expense in our statements of operations. At June 30, 2023, inventory with approximately $32.6 million of product costs incurred prior to regulatory approval had not yet been sold. We expect to sell the pre-commercialization inventory over the next 12 to 18 months and, as a result, cost of product revenues will reflect a lower average per unit cost of materials.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - shares	3 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Issuance of shares of Common Stock upon exercise of stock options and settlement of employee restricted stock units and performance shares (in shares)	59,093	313,995	274,693	323,582
Issuance of shares of Common Stock under the ESPP (in shares)	216,168		189,684
Issuance of shares of Common Stock for services rendered (in shares)	1,282	1,073	1,469	1,535

Accrued and Other Current Liabilities (Details) - USD ($)
$ in Thousands

Jun. 30, 2023

Dec. 31, 2022

Accrued and Other Current Liabilities

Royalties

$ 321,816

$ 263,466

Clinical related costs

137,780

130,570

Sales allowances

224,474

192,133

Sales and marketing

29,006

31,149

Construction in progress

4,420

3,493

Operating lease liabilities

7,084

8,195

Other current liabilities

86,272

72,047

Total accrued and other current liabilities

$ 810,852

$ 701,053

^[1]

[1]	The condensed consolidated balance sheet at December 31, 2022 has been derived from the audited consolidated financial statements at that date.

Fair Value of Financial Instruments - Level 3 liabilities (Details) - Significant Unobservable Inputs (Level 3) - Estimate of Fair Value Measurement $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Roll forward of Level 3 liabilities
Balance at the beginning of the period	$ 221,000
Contingent consideration earned during the period but not yet paid	(18,570)
Change in fair value of contingent consideration	14,570
Balance at the end of the period	$ 217,000

Employee Benefit plans - Net periodic benefit cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Retirement Benefits [Abstract]
Service cost	$ 1,733	$ 2,438	$ 3,821	$ 4,960
Interest cost	44	62	661	126
Expected return on plan assets	(736)	(1,035)	(2,276)	(2,106)
Amortization of prior service cost	276	193	379	387
Amortization of actuarial losses	(90)	89	0	177
Net periodic benefit cost	$ 1,227	$ 1,747	$ 2,585	$ 3,544

Stock Compensation - RSU award and PSU activity under the 2010 stock plan (Details)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
RSU and PSU Activity Shares
Outstanding at the beginning of the period (in shares) \| shares	5,187,592
Outstanding at the end of the period (in shares) \| shares	5,704,335
RSU and PSU Grant Price
Grant date value of shares outstanding at the beginning of the period (in USD per share) \| $ / shares	$ 81.24
Grant date value of shares at the end of the period (in USD per share) \| $ / shares	$ 80.77
Restricted Stock Units (RSUs)
RSU and PSU Activity Shares
Granted (in shares) \| shares	829,206
Released (in shares) \| shares	(186,167)
Cancelled (in shares) \| shares	(125,325)
RSU and PSU Grant Price
Granted (in USD per share) \| $ / shares	$ 77.15
Released (in USD per share) \| $ / shares	77.96
Cancelled (in USD per share) \| $ / shares	$ 80.67
Performance Shares
RSU and PSU Activity Shares
Cancelled (in shares) \| shares	(971)
RSU and PSU Grant Price
Cancelled (in USD per share) \| $ / shares	$ 106.47

Stock compensation (Tables)

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of valuation assumptions used for valuation of fair value of stock compensation granted

We utilized the Black-Scholes valuation model for estimating the fair value of the stock compensation granted, with the following weighted-average assumptions:


	Employee Stock Options												Employee Stock Purchase Plan
	For the Three Months Ended						For the Six Months Ended						For the Three Months Ended						For the Six Months Ended
	June 30,												June 30,
	2023			2022			2023			2022			2023			2022			2023			2022
Average risk-free interest rates	3.88		%	3.04		%	3.76		%	1.67		%	4.87		%	2.92		%	4.27		%	2.77		%
Average expected life (in years)	5.58			5.51			4.95			4.77			0.50			0.50			0.50			0.50
Volatility	29		%	33		%	32		%	37		%	27		%	39		%	23		%	28		%
Weighted-average fair value (in dollars)	$	22.57		$	26.35		$	26.78		$	25.30		$	13.82		$	14.91		$	14.08		$	14.53

Schedule of option activity under the 2010 Stock Plan

Option activity under our 2010 Stock Incentive Plan (the “2010 Stock Plan”) was as follows:


	Shares Subject to Outstanding Options
	Shares	Weighted Average Exercise Price
Balance at December 31, 2022	12,650,359	$	87.25
Options granted	702,470	$	78.53
Options exercised	(231,417)	$	67.05
Options cancelled	(755,507)	$	94.07
Balance at June 30, 2023	12,365,905	$	86.72

Schedule of RSU award and PSU activity under the 2010 Stock Plan

Restricted stock unit (“RSU”) and performance share (“PSU”) award activity under the 2010 Stock Plan was as follows:


	Shares Subject to Outstanding Awards
	Shares	Grant Date Value
Balance at December 31, 2022	5,187,592	$	81.24
RSUs granted	829,206	$	77.15

RSUs released	(186,167)	$	77.96

RSUs cancelled	(125,325)	$	80.67
PSUs cancelled	(971)	$	106.47
Balance at June 30, 2023	5,704,335	$	80.77

Summary of shares available for grant

The following table summarizes our shares available for grant under the 2010 Stock Plan. Each RSU and PSU grant reduces the available share pool by 2 shares.


			Shares Available for Grant
Balance at December 31, 2022			5,056,370
Additional authorization			12,500,000
Options, RSUs and PSUs granted			(2,360,882)
Options, RSUs and PSUs cancelled			1,006,844
Balance at June 30, 2023			16,202,332

Summary of Significant Accounting Policies (Details) - ICLUSIG	Jun. 30, 2023
Minimum
Property and equipment, net
Amortization period	11 years
Maximum
Property and equipment, net
Amortization period	14 years

Property and Equipment, net

6 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

Property and Equipment, net

Note 8. Property and Equipment, net

Property and equipment, net consists of the following (in thousands):


	June 30, 2023		December 31, 2022
Office equipment	$	23,182	$	22,734
Laboratory equipment	202,929		192,141
Computer equipment	121,048		92,115
Land	10,581		10,429
Building and leasehold improvements	571,694		564,170
Operating lease right-of-use assets	24,528		23,311
Construction in progress	34,534		47,224
	988,496		952,124
Less accumulated depreciation and amortization	(239,144)		(212,814)
Property and equipment, net	$	749,352	$	739,310

Stock Compensation - Valuation assumptions used for value of stock compensation granted (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Employee Stock Purchase Plan
Weighted-average fair value assumptions
Average risk-free interest rates (as a percent)	4.87%	2.92%	4.27%	2.77%
Average expected life (in years)	6 months	6 months	6 months	6 months
Volatility (as a percent)	27.00%	39.00%	23.00%	28.00%
Weighted-average fair value (in dollars per share)	$ 13.82	$ 14.91	$ 14.08	$ 14.53
Employee Stock Option
Weighted-average fair value assumptions
Average risk-free interest rates (as a percent)	3.88%	3.04%	3.76%	1.67%
Average expected life (in years)	5 years 6 months 29 days	5 years 6 months 3 days	4 years 11 months 12 days	4 years 9 months 7 days
Volatility (as a percent)	29.00%	33.00%	32.00%	37.00%
Weighted-average fair value (in dollars per share)	$ 22.57	$ 26.35	$ 26.78	$ 25.30

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 14. Commitments and Contingencies We have entered into the collaboration agreements described in Note 7, as well as various other collaboration agreements that are not individually, or in the aggregate, significant to our operating results or financial condition at this time. We may in the future seek to license additional rights relating to technologies or drug development candidates in connection with our drug discovery and development programs. Under these agreements, we may be required to pay upfront fees, milestone payments, and royalties on sales of future products. In the ordinary course of our business, we may become involved in lawsuits, proceedings, and other disputes, including commercial, intellectual property, regulatory, employment, and other matters. We record a reserve for these matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated.

Revenues

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenues

Note 3. Revenues

Revenues are recognized under guidance within ASC 606, Revenue from Contracts with Customers. The following table presents our disaggregated revenue for the periods presented (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
JAKAFI revenues, net	$	682,384	$	597,673	$	1,262,353	$	1,142,137
OPZELURA revenues, net	80,233		16,560		136,785		29,314
ICLUSIG revenues, net	29,087		26,224		56,772		52,293
PEMAZYRE revenues, net	21,572		18,983		44,047		37,015
MINJUVI revenues, net	13,159		4,411		19,715		8,913
ZYNYZ revenues, net	570		—		570		—
Total product revenues, net	827,005		663,851		1,520,242		1,269,672
JAKAVI product royalty revenues	90,448		83,711		167,140		154,578
OLUMIANT product royalty revenues	32,009		30,254		66,164		78,318
TABRECTA product royalty revenues	4,799		3,581		8,976		7,064
PEMAZYRE product royalty revenues	349		—		761		—
Total product royalty revenues	127,605		117,546		243,041		239,960
Milestone and contract revenues	—		130,000		—		135,000
Total revenues	$	954,610	$	911,397	$	1,763,283	$	1,644,632

For further information on our revenue-generating contracts, refer to Note 7.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

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License Agreements - Merus (Details) $ in Thousands	1 Months Ended			3 Months Ended		6 Months Ended
License Agreements - Merus (Details) $ in Thousands	Jan. 31, 2023 USD ($)	Jan. 31, 2022 item	Dec. 31, 2016 item	Jun. 30, 2023 USD ($) shares	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) shares	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
License Agreements
Unrealized gain (loss) on long term investments				$ 41,811	$ (24,897)	$ 36,493	$ (71,482)
Merus
License Agreements
Common stock held from investment (in shares) \| shares				3,600,000		3,600,000
Fair market value of our long term investments				$ 93,500		$ 93,500		$ 54,900
Unrealized gain (loss) on long term investments				28,200	$ (13,500)	38,600	$ (32,500)
Merus
License Agreements
Number of independent programs \| item			10
Number of additional preclinical discovery programs \| item		10
Number of programs under the resulting products are co-funded for development \| item		2
Associated future global development costs , if elected to co-develop (as a percent)		35.00%
Milestone payment made under license agreement	$ 2,500					$ 5,500
Merus \| UNITED STATES
License Agreements
Profit sharing (as a percent)						50.00%
Percentage of profit (losses)						50.00%
Merus \| Minimum
License Agreements
Royalty payments on future global net sales (as a percent)						6.00%
Merus \| Minimum \| Non-US
License Agreements
Royalty payments on future global net sales (as a percent)						6.00%
Merus \| Maximum
License Agreements
Royalty payments on future global net sales (as a percent)						10.00%
Merus \| Maximum \| UNITED STATES
License Agreements
Royalty payments on future global net sales (as a percent)						4.00%
Merus \| Maximum \| Non-US
License Agreements
Royalty payments on future global net sales (as a percent)						10.00%
Merus \| Development and Regulatory Milestones \| Maximum
License Agreements
Additional milestone payments under the license agreement				100,000		$ 100,000
Merus \| Commercialization Milestones \| Maximum
License Agreements
Additional milestone payments under the license agreement				$ 250,000		$ 250,000

Net Income Per Share - Net income (loss) per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Basic Net Income (Loss) Per Share
Basic net income	$ 203,548	$ 161,432	$ 225,251	$ 199,424
Weighted average common shares outstanding (in shares)	223,248	221,660	223,104	221,493
Basic net income per share ( in USD per share)	$ 0.91	$ 0.73	$ 1.01	$ 0.90
Diluted Net Income (Loss) Per Share
Diluted net income	$ 203,548	$ 161,432	$ 225,251	$ 199,424
Weighted average common shares outstanding (in shares)	223,248	221,660	223,104	221,493
Dilutive stock options and awards ( in shares)	2,401	2,001	2,437	1,784
Weighted average shares used to compute diluted net income per share ( in shares)	225,649	223,661	225,541	223,277
Diluted net income per share ( in USD per share)	$ 0.90	$ 0.72	$ 1.00	$ 0.89

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities, and addition from assumption of issuance of common shares for dilutive potential common shares; of income (loss) available to common shareholders.

+ References + Details

License Agreements - Novartis (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended		164 Months Ended
	Nov. 30, 2009	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Dec. 31, 2022
License Agreements
Total revenues		$ 954,610	$ 911,397	$ 1,763,283	$ 1,644,632
Product royalty revenues
License Agreements
Total revenues		127,605	117,546	243,041	239,960
JAKAFI
License Agreements
Total revenues		682,384	597,673	1,262,353	1,142,137
Milestone and contract revenues
License Agreements
Total revenues		0	130,000	0	135,000
Novartis
License Agreements
Royalties payable		310,300		310,300		$ 310,300	$ 253,500
Novartis \| JAKAVI \| Non-US
License Agreements
Royalties payable on net sales		90,400	83,700	167,100	154,600
Novartis \| JAKAFI \| UNITED STATES
License Agreements
Royalties payable on net sales		33,500	29,300	56,900	51,000
Novartis \| Milestone and contract revenues
License Agreements
Total revenues		0	60,000	0	60,000
Novartis \| TABRECTA PROD SERV \| Non-US
License Agreements
Royalties payable on net sales		$ 4,800	$ 3,600	$ 9,000	$ 7,100
Minimum \| Novartis \| JAKAVI
License Agreements
Royalty payments on future global net sales (as a percent)				12.00%
Maximum \| Novartis \| JAKAVI
License Agreements
Royalty payments on future global net sales (as a percent)				14.00%
Development Milestones \| Novartis
License Agreements
Amount recognized and received for the achievement of a predefined milestone						157,000
Development Milestones \| Maximum \| Novartis
License Agreements
Upfront and immediate milestone payment to be received under license agreement	$ 174,000
Regulatory Milestones \| Novartis
License Agreements
Amount recognized and received for the achievement of a predefined milestone						340,000
Regulatory Milestones \| Maximum \| Novartis
License Agreements
Upfront and immediate milestone payment to be received under license agreement	495,000
Commercialization Milestones \| Novartis
License Agreements
Amount recognized and received for the achievement of a predefined milestone						$ 200,000
Commercialization Milestones \| Maximum \| Novartis
License Agreements
Upfront and immediate milestone payment to be received under license agreement	500,000
Development and Regulatory Milestones \| Maximum \| Novartis
License Agreements
Upfront and immediate milestone payment to be received under license agreement	$ 75,000

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2. Summary of Significant Accounting Policies Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The condensed consolidated balance sheet as of June 30, 2023, the condensed consolidated statements of operations, comprehensive income (loss), and stockholders’ equity for the three and six months ended June 30, 2023 and 2022, and the condensed consolidated statements of cash flows for the six months ended June 30, 2023 and 2022, are unaudited, but include all adjustments, consisting only of normal recurring adjustments, which we consider necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The condensed consolidated balance sheet at December 31, 2022 has been derived from our audited consolidated financial statements. Although we believe that the disclosures in these financial statements are adequate to make the information presented not misleading, certain information and footnote information normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. Results for any interim period are not necessarily indicative of results for any future interim period or for the entire year. The accompanying financial statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022. Principles of Consolidation. The condensed consolidated financial statements include the accounts of Incyte Corporation and our wholly owned subsidiaries. All inter-company accounts, transactions, and profits have been eliminated in consolidation. Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Other Intangible Assets, net. Other intangible assets, net consist of licensed intellectual property rights acquired in business combinations, which are reported at acquisition date fair value, less accumulated amortization, as well as milestone payments made to collaboration partners incurred at or after the product has obtained regulatory approval. Intangible assets with finite lives are amortized over their estimated useful lives using the straight-line method. Intangible assets with finite lives are tested for recoverability whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. Cost of Product Revenues. Cost of product revenues includes all product related costs and royalties owed under our collaboration and license agreements, contingent on certain conditions. In addition, cost of product revenues includes the amortization of our licensed intellectual property for ICLUSIG and the amortization of capitalized milestone payments, using the straight-line method over the respective estimated useful lives, which range between approximately 11 to 14 years. Cost of product revenues also includes employee personnel costs, including stock compensation, for those employees dedicated to the production of our commercial products. Recent Accounting PronouncementsThere were no new accounting pronouncements issued nor adopted since our filing of the Annual Report on Form 10-K for the year ended December 31, 2022, which could have a significant effect on our condensed consolidated financial statements.

License Agreements - MorphoSys (Details) $ in Thousands	3 Months Ended		6 Months Ended
License Agreements - MorphoSys (Details) $ in Thousands	Jun. 30, 2023 USD ($) shares	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) shares	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	Jan. 31, 2020 USD ($)
License Agreements
Unrealized gain (loss) on long term investments	$ 41,811	$ (24,897)	$ 36,493	$ (71,482)
(Profit) and loss sharing under collaboration agreements	(549)	2,544	(1,911)	7,286
Research and development expense	$ 400,750	347,196	$ 807,391	700,569
MorphoSys AG
License Agreements
Common stock held from investment (in shares) \| shares	3,600,000		3,600,000
Share conversion	0.25		0.25
Fair market value of our long term investments	$ 27,100		$ 27,100		$ 13,000
Unrealized gain (loss) on long term investments	12,700	(7,100)	14,100	(16,700)
MorphoSys AG
License Agreements
Research and development expense	20,300	27,500	45,500	48,500
Accrued and other liabilities	39,300		$ 39,300		$ 28,500
MorphoSys AG \| UNITED STATES
License Agreements
Profit (loss) sharing ratio			50.00%
MorphoSys AG \| UNITED STATES \| Tafasitamab Product and Service
License Agreements
(Profit) and loss sharing under collaboration agreements	$ (500)	$ 2,500	$ (1,900)	$ 7,300
MorphoSys AG \| Development and Regulatory Milestones
License Agreements
Milestone payment made under license agreement			$ 2,500
MorphoSys AG \| Development and Regulatory Milestones \| Maximum
License Agreements
Additional milestone payments under the license agreement						$ 737,500
MorphoSys AG \| Commercialization Milestones \| Maximum
License Agreements
Additional milestone payments under the license agreement						$ 315,000
MorphoSys AG \| MorphoSys AG
License Agreements
Funding of future development costs (as a percent)			45.00%
MorphoSys AG \| Incyte
License Agreements
Funding of future development costs (as a percent)			55.00%

Inventory (Tables)

6 Months Ended

Jun. 30, 2023

Inventory Disclosure [Abstract]

Schedule of inventory

Our inventory balance consists of the following (in thousands):


	June 30, 2023		December 31, 2022
Raw materials	$	32,630	$	31,874
Work-in-process	122,971		54,455
Finished goods	22,384		34,630
Total inventory	$	177,985	$	120,959

Stock Compensation - Shares available for grant (Details)	6 Months Ended
	Jun. 30, 2023 shares
Available Shares for Grant
Beginning Balance (in shares)	5,056,370
Additional authorization (in shares)	12,500,000
Options, RSUs and PSUs granted (in shares)	(2,360,882)
Options, RSUs and PSUs cancelled (in shares)	1,006,844
Ending Balance (in shares)	16,202,332

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net income	$ 225,251	$ 199,424
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	39,508	32,945
Stock-based compensation	107,899	90,337
Deferred income taxes	(61,864)	32,475
Other, net	(3,670)	8,467
Unrealized (gain) loss on long term investments	(36,493)	71,482
Loss on change in fair value of acquisition-related contingent consideration	14,570	9,695
Changes in operating assets and liabilities:
Accounts receivable	6,885	(66,668)
Prepaid expenses and other assets	(8,219)	(25,380)
Inventory	(53,436)	(37,190)
Accounts payable	(122,008)	22,660
Accrued and other liabilities	92,500	51,651
Net cash provided by operating activities	200,923	389,898
Cash flows from investing activities:
Sale of long term investments	45	0
Capital expenditures	(19,243)	(28,749)
Payments for intangible assets	(15,000)	0
Purchases of marketable securities	(152,277)	(43,988)
Sale and maturities of marketable securities	150,487	43,509
Net cash used in investing activities	(35,988)	(29,228)
Cash flows from financing activities:
Proceeds from issuance of common stock under stock plans	28,367	37,692
Tax withholdings related to restricted and performance share vesting	(3,428)	(6,854)
Payment of finance lease liabilities	(1,638)	(1,368)
Payment of contingent consideration	(6,424)	(13,473)
Net cash provided by financing activities	16,877	15,997
Effect of exchange rates on cash, cash equivalents, restricted cash and investments	(2,090)	1,198
Net increase in cash, cash equivalents, restricted cash and investments	179,722	377,865
Cash, cash equivalents, restricted cash and investments at beginning of period	2,953,120	2,059,160
Cash, cash equivalents, restricted cash and investments at end of period	3,132,842	2,437,025
Supplemental Schedule of Cash Flow Information
Income taxes paid	137,313	76,464
Unpaid purchases of property and equipment	4,420	8,952
Leased assets obtained in exchange for new operating lease liabilities	5,275	2,025
Leased assets obtained in exchange for new finance lease liabilities	$ 1,024	$ 1,308

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands

Total

Common Stock

Additional Paid-in Capital

Accumulated Other Comprehensive Income

Accumulated Deficit

Beginning Balance at Dec. 31, 2021

$ 3,770,004

$ 221

$ 4,567,111

$ (19,454)

$ (777,874)

Increase (Decrease) in Stockholders' Equity

Issuance of shares of Common Stock upon exercise of stock options and settlement of employee restricted stock units, net of shares withheld for taxes

14,237

Issuance of shares of Common Stock for services rendered

112

Stock compensation

44,320

Other comprehensive income (loss)

(3,593)

Net income

37,992

Ending Balance at Mar. 31, 2022

3,863,072

221

4,625,780

(23,047)

(739,882)

Beginning Balance at Dec. 31, 2021

3,770,004

221

4,567,111

(19,454)

(777,874)

Increase (Decrease) in Stockholders' Equity

Other comprehensive income (loss)

(6,242)

Net income

199,424

Ending Balance at Jun. 30, 2022

4,085,061

222

4,688,985

(25,696)

(578,450)

Beginning Balance at Mar. 31, 2022

3,863,072

221

4,625,780

(23,047)

(739,882)

Increase (Decrease) in Stockholders' Equity

Issuance of shares of Common Stock upon exercise of stock options and settlement of employee restricted stock units and performance shares, net of shares withheld for taxes and shares of Common Stock under the ESPP

16,601

16,600

Issuance of shares of Common Stock for services rendered

109

Stock compensation

46,496

Other comprehensive income (loss)

(2,649)

Net income

161,432

Ending Balance at Jun. 30, 2022

4,085,061

222

4,688,985

(25,696)

(578,450)

Beginning Balance at Dec. 31, 2022

4,370,119

^[1]

223

4,792,041

15,069

(437,214)

Increase (Decrease) in Stockholders' Equity

Issuance of shares of Common Stock upon exercise of stock options and settlement of employee restricted stock units, net of shares withheld for taxes

11,235

Issuance of shares of Common Stock for services rendered

Stock compensation

53,558

Other comprehensive income (loss)

5,873

Net income

21,703

Ending Balance at Mar. 31, 2023

4,462,568

223

4,856,914

20,942

(415,511)

Beginning Balance at Dec. 31, 2022

4,370,119

^[1]

223

4,792,041

15,069

(437,214)

Increase (Decrease) in Stockholders' Equity

Other comprehensive income (loss)

11,737

Net income

225,251

Ending Balance at Jun. 30, 2023

4,740,692

223

4,925,626

26,806

(211,963)

Beginning Balance at Mar. 31, 2023

4,462,568

223

4,856,914

20,942

(415,511)

Increase (Decrease) in Stockholders' Equity

13,704

Issuance of shares of Common Stock for services rendered

Stock compensation

54,928

Other comprehensive income (loss)

5,864

Net income

203,548

Ending Balance at Jun. 30, 2023

$ 4,740,692

$ 223

$ 4,925,626

$ 26,806

$ (211,963)

[1]	The condensed consolidated balance sheet at December 31, 2022 has been derived from the audited consolidated financial statements at that date.

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

- Definition

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

+ References

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+ Details

License Agreements - Syros (Details)
$ in Thousands, shares in Millions

1 Months Ended

3 Months Ended

6 Months Ended

Jan. 31, 2018

USD ($)

item

Jun. 30, 2023

USD ($)

Jun. 30, 2022

USD ($)

Jun. 30, 2023

USD ($)

Jun. 30, 2022

USD ($)

Dec. 31, 2022

USD ($)

License Agreements

Fair market long term investments

$ 170,316

$ 133,676

^[1]

Unrealized gain (loss) on long term investments

$ 41,811

$ (24,897)

$ 36,493

$ (71,482)

Syros Pharmaceuticals, Inc.

License Agreements

Common stock held from investment (in shares) | shares

0.1

Fair market long term investments

$ 300

Unrealized gain (loss) on long term investments

$ 0

$ (200)

$ (100)

$ (2,200)

Syros Pharmaceuticals, Inc.

License Agreements

Number of program targets | item

Syros Pharmaceuticals, Inc. | Maximum

License Agreements

Target selection and option exercise fee payment

$ 54,000

Syros Pharmaceuticals, Inc. | Maximum | Development and Regulatory Milestones

License Agreements

Additional milestone payments under the license agreement

50,000

Syros Pharmaceuticals, Inc. | Maximum | Commercialization Milestones

License Agreements

Additional milestone payments under the license agreement

$ 65,000

[1]	The condensed consolidated balance sheet at December 31, 2022 has been derived from the audited consolidated financial statements at that date.

Stock Compensation

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Stock Compensation

Note 10. Stock Compensation

We recorded $54.5 million and $107.9 million of stock compensation expense on our condensed consolidated statements of operations for the three and six months ended June 30, 2023, respectively. We recorded $46.5 million and $90.3 million of stock compensation expense on our condensed consolidated statements of operations for the three and six months ended June 30, 2022, respectively. Stock compensation expense included within our condensed consolidated statements of operations included research and development expense of $32.8 million, $63.8 million, $28.1 million and $54.4 million for the three and six months ended June 30, 2023 and 2022, respectively. Stock compensation expense included within our condensed consolidated statements of operations also included selling, general and administrative expense of $20.9 million, $42.5 million, $17.7 million and $34.6 million for the three and six months ended June 30, 2023 and 2022, respectively. Stock compensation expense included within our condensed consolidated statements of operations also included cost of product revenues of $0.8 million, $1.6 million, $0.7 million and $1.3 million, respectively, for the three and six months ended June 30, 2023 and 2022.

We utilized the Black-Scholes valuation model for estimating the fair value of the stock compensation granted, with the following weighted-average assumptions:


	Employee Stock Options												Employee Stock Purchase Plan
	For the Three Months Ended						For the Six Months Ended						For the Three Months Ended						For the Six Months Ended
	June 30,												June 30,
	2023			2022			2023			2022			2023			2022			2023			2022
Average risk-free interest rates	3.88		%	3.04		%	3.76		%	1.67		%	4.87		%	2.92		%	4.27		%	2.77		%
Average expected life (in years)	5.58			5.51			4.95			4.77			0.50			0.50			0.50			0.50
Volatility	29		%	33		%	32		%	37		%	27		%	39		%	23		%	28		%
Weighted-average fair value (in dollars)	$	22.57		$	26.35		$	26.78		$	25.30		$	13.82		$	14.91		$	14.08		$	14.53

The risk-free interest rate is derived from the U.S. Federal Reserve rate in effect at the time of grant. The expected life calculation is based on the observed and expected time to the exercise of options by our employees based on historical exercise patterns for similar type options. Expected volatility is based on the historical volatility of our common stock over the period commensurate with the expected life of the options. A dividend yield of zero is assumed based on the fact that we have never paid cash dividends and have no present intention to pay cash dividends. Nonemployee awards are measured on the grant date by estimating the fair value of the equity instruments to be issued using the expected term, similar to our employee awards.

Option activity under our 2010 Stock Incentive Plan (the “2010 Stock Plan”) was as follows:


	Shares Subject to Outstanding Options
	Shares	Weighted Average Exercise Price
Balance at December 31, 2022	12,650,359	$	87.25
Options granted	702,470	$	78.53
Options exercised	(231,417)	$	67.05
Options cancelled	(755,507)	$	94.07
Balance at June 30, 2023	12,365,905	$	86.72

Our annual stock option grants generally have a 10-year term and vest over four years, with 25% vesting after one year and the remainder vesting in 36 equal monthly installments.

Restricted stock unit (“RSU”) and performance share (“PSU”) award activity under the 2010 Stock Plan was as follows:


	Shares Subject to Outstanding Awards
	Shares	Grant Date Value
Balance at December 31, 2022	5,187,592	$	81.24
RSUs granted	829,206	$	77.15

RSUs released	(186,167)	$	77.96

RSUs cancelled	(125,325)	$	80.67
PSUs cancelled	(971)	$	106.47
Balance at June 30, 2023	5,704,335	$	80.77

RSUs and PSUs are granted to our employees at the share price on the date of grant. Each RSU represents the right to acquire one share of our common stock. Each RSU granted in connection with our annual equity awards will vest 25% annually over four years, while each RSU granted as outstanding merit awards or as part of retention award programs will vest in a single installment at the end of four years.

We grant PSUs with performance and/or service-based milestones with graded and/or cliff vesting over three to four years. The shares of our common stock into which each PSU may convert is subject to a multiplier based on the level at which the financial, developmental and market performance conditions are achieved over the service period. Compensation expense for PSUs with financial and developmental performance conditions is recorded over the estimated service period for each milestone when the performance conditions are deemed probable of achievement. For PSUs containing performance conditions which were not deemed probable of achievement, no stock compensation expense is recorded. Compensation expense for PSUs with market performance conditions is calculated using a Monte Carlo simulation model as of the date of grant and recorded over the requisite service period. For the three and six months ended June 30, 2023 we recorded $2.7 million and $9.2 million, respectively, of stock compensation expense for PSUs on our condensed consolidated statements of operations. For the three and six months ended June 30, 2022 we recorded $0.1 million and $1.9 million of stock compensation expense for PSUs on our condensed consolidated statements of operations.

The following table summarizes our shares available for grant under the 2010 Stock Plan. Each RSU and PSU grant reduces the available share pool by 2 shares.


			Shares Available for Grant
Balance at December 31, 2022			5,056,370
Additional authorization			12,500,000
Options, RSUs and PSUs granted			(2,360,882)
Options, RSUs and PSUs cancelled			1,006,844
Balance at June 30, 2023			16,202,332

Based on our historical experience of employee turnover, we have assumed an annualized forfeiture rate of 5% for our options, RSUs and PSUs. Under the true-up provisions of the stock compensation guidance, we will record additional expense if the actual forfeiture rate is lower than we estimated, and will record a recovery of prior expense if the actual forfeiture is higher than we estimated.

Total compensation cost of options granted but not yet vested, as of June 30, 2023, was $34.5 million, which is expected to be recognized over the weighted average period of approximately 1.1 years. Total compensation cost of RSUs granted but not yet vested, as of June 30, 2023, was $175.0 million, which is expected to be recognized over the weighted average period of approximately 1.6 years. Total compensation cost of PSUs granted but not yet vested, as of June 30, 2023, was $28.2 million, which is expected to be recognized over the weighted average period of 1.4 years, should the underlying performance conditions be deemed probable of achievement.

Property and Equipment, net - Property and equipment, net (Details) - USD ($)
$ in Thousands

Jun. 30, 2023

Dec. 31, 2022

Property and equipment, net

Property and Equipment, gross

$ 988,496

$ 952,124

Less accumulated depreciation and amortization

(239,144)

(212,814)

Property and equipment, net

749,352

739,310

^[1]

Office equipment

Property and equipment, net

Property and Equipment, gross

23,182

22,734

Laboratory equipment

Property and equipment, net

Property and Equipment, gross

202,929

192,141

Computer equipment

Property and equipment, net

Property and Equipment, gross

121,048

92,115

Land

Property and equipment, net

Property and Equipment, gross

10,581

10,429

Building and leasehold improvements

Property and equipment, net

Property and Equipment, gross

571,694

564,170

Operating lease right-of-use assets

Property and equipment, net

Property and Equipment, gross

24,528

23,311

Construction in progress

Property and equipment, net

Property and Equipment, gross

$ 34,534

$ 47,224

[1]	The condensed consolidated balance sheet at December 31, 2022 has been derived from the audited consolidated financial statements at that date.

Stock Compensation - Option activity under the 2010 stock plan (Details) - Share-based Payment Arrangement, Option	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Option Activity Shares
Outstanding at the beginning of the period (in shares) \| shares	12,650,359
Options granted (in shares) \| shares	702,470
Options exercised (in shares) \| shares	(231,417)
Options cancelled (in shares) \| shares	(755,507)
Outstanding at the end of the period (in shares) \| shares	12,365,905
Stock Options Weighted Average Price
Weighted average price of options at the beginning of the period (in USD per share) \| $ / shares	$ 87.25
Granted (in USD per share) \| $ / shares	78.53
Exercised (in USD per share) \| $ / shares	67.05
Cancelled (in USD per share) \| $ / shares	94.07
Weighted average price of options at the end of the period (in USD per share) \| $ / shares	$ 86.72

Fair Value of Financial Instruments - Assets measured on a recurring basis (Details) - USD ($)
$ in Thousands

Jun. 30, 2023

Dec. 31, 2022

Fair value of financial instruments

Long term investments

$ 170,316

$ 133,676

^[1]

Fair Value, Recurring | Estimate of Fair Value Measurement

Fair value of financial instruments

Cash and cash equivalents

3,131,123

2,951,422

Debt securities (government)

292,243

287,543

Long term investments

170,316

133,676

Total assets

3,593,682

3,372,641

Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)

Fair value of financial instruments

Cash and cash equivalents

3,131,123

2,951,422

Debt securities (government)

Long term investments

170,316

133,676

Total assets

3,301,439

3,085,098

Fair Value, Recurring | Significant Other Observable Inputs (Level 2)

Fair value of financial instruments

Cash and cash equivalents

Debt securities (government)

292,243

287,543

Long term investments

Total assets

292,243

287,543

Fair Value, Recurring | Significant Unobservable Inputs (Level 3)

Fair value of financial instruments

Cash and cash equivalents

Debt securities (government)

Long term investments

Total assets

$ 0

[1]	The condensed consolidated balance sheet at December 31, 2022 has been derived from the audited consolidated financial statements at that date.

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss) Attributable to Parent	$ 203,548	$ 21,703	$ 161,432	$ 37,992	$ 225,251	$ 199,424

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Note 4. Fair Value of Financial Instruments

The following is a summary of our marketable security portfolio for the periods presented (in thousands):


	Amortized Cost		Net Unrealized Losses		Estimated Fair Value
June 30, 2023
Debt securities (government)	$	294,371	$	(2,128)	$	292,243

December 31, 2022
Debt securities (government)	$	292,580	$	(5,037)	$	287,543

Our available-for-sale debt securities generally have contractual maturity dates of between 12 to 18 months. Debt security assets were assessed for risk of expected credit losses. As of June 30, 2023 and December 31, 2022, the available-for-sale debt securities were held in U.S.-government backed securities and in Treasury bonds and were assessed on an individual security basis to have a de minimis risk of credit loss.

Fair Value Measurements

FASB accounting guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability (“the exit price”) in an orderly transaction between market participants at the measurement date. The standard outlines a valuation framework and creates a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and the related disclosures. In determining fair value we use quoted prices and observable inputs. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of us. The fair value hierarchy is broken down into three levels based on the source of inputs as follows:

Level 1—Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2—Valuations based on observable inputs and quoted prices in active markets for similar assets and liabilities.

Level 3—Valuations based on inputs that are unobservable and models that are significant to the overall fair value measurement.

Recurring Fair Value Measurements

Our marketable securities consist of investments in U.S. government debt securities that are classified as available-for-sale.

At June 30, 2023 and December 31, 2022, our Level 2 U.S. government debt securities were valued using readily available pricing sources which utilize market observable inputs, including the current interest rate and other characteristics for similar types of investments. Our long term investments classified as Level 1 were valued using their respective closing stock prices on The Nasdaq Stock Market. We did not experience any transfers of financial instruments between the fair value hierarchy levels during the six months ended June 30, 2023.

The following fair value hierarchy table presents information about each major category of our financial assets measured at fair value on a recurring basis (in thousands):


	Fair Value Measurement at Reporting Date Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of June 30, 2023
Cash and cash equivalents	$	3,131,123	$	—	$	—	$	3,131,123
Debt securities (government)	—		292,243		—		292,243
Long term investments (Note 7)	170,316		—		—		170,316
Total assets	$	3,301,439	$	292,243	$	—	$	3,593,682


	Fair Value Measurement at Reporting Date Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2022
Cash and cash equivalents	$	2,951,422	$	—	$	—	$	2,951,422
Debt securities (government)	—		287,543		—		287,543
Long term investments (Note 7)	133,676		—		—		133,676
Total assets	$	3,085,098	$	287,543	$	—	$	3,372,641

The following fair value hierarchy table presents information about each major category of our financial liabilities measured at fair value on a recurring basis as (in thousands):


	Fair Value Measurement at Reporting Date Using:
	Quoted Prices in Active Markets for Identical Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of June 30, 2023
Acquisition-related contingent consideration	$	—	$	—	$	217,000	$	217,000
Total liabilities	$	—	$	—	$	217,000	$	217,000


	Fair Value Measurement at Reporting Date Using:
	Quoted Prices in Active Markets for Identical Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2022
Acquisition-related contingent consideration	$	—	$	—	$	221,000	$	221,000
Total liabilities	$	—	$	—	$	221,000	$	221,000

The following is a rollforward of our Level 3 liabilities (in thousands):


	2023
Balance at January 1,	$	221,000
Contingent consideration earned during the period but not yet paid	(18,570)

Change in fair value of contingent consideration	14,570
Balance at June 30,	$	217,000

The initial fair value of the contingent consideration was determined on the date of acquisition, June 1, 2016, using an income approach based on projected future net revenues of ICLUSIG in the European Union and other countries for the approved third line treatment over 18 years, and discounted to present value at a rate of 10%. The fair value of the contingent consideration is remeasured each reporting period, with changes in fair value recorded in the condensed consolidated statements of operations. The valuation inputs utilized to estimate the fair value of the contingent consideration as of June 30, 2023 and December 31, 2022 included a discount rate of 10% and updated projections of future net revenues of ICLUSIG in the European Union and other countries for the approved third line treatment. The loss on change in fair value of the contingent consideration during the three and six months ended June 30, 2023 was due primarily to the passage of time.

We generally make payments to Takeda Pharmaceutical Company Limited quarterly based on the royalties or any additional milestone payments earned in the previous quarter. At June 30, 2023 and December 31, 2022, contingent consideration earned but not yet paid was $18.6 million and $9.3 million, respectively, and was included in accrued and other current liabilities.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenues:
Total revenues	$ 954,610	$ 911,397	$ 1,763,283	$ 1,644,632
Costs and expenses:
Cost of product revenues (including definite-lived intangible amortization)	68,326	50,636	125,148	93,250
Research and development	400,750	347,196	807,391	700,569
Selling, general and administrative	283,929	253,277	599,535	462,861
Loss on change in fair value of acquisition-related contingent consideration	8,374	3,313	14,570	9,695
(Profit) and loss sharing under collaboration agreements	(549)	2,544	(1,911)	7,286
Total costs and expenses	760,830	656,966	1,544,733	1,273,661
Income from operations	193,780	254,431	218,550	370,971
Interest income and other, net	42,668	522	75,541	1,782
Interest expense	(655)	(678)	(1,124)	(1,358)
Unrealized gain (loss) on long term investments	41,811	(24,897)	36,493	(71,482)
Income before provision for income taxes	277,604	229,378	329,460	299,913
Provision for income taxes	74,056	67,946	104,209	100,489
Net income	$ 203,548	$ 161,432	$ 225,251	$ 199,424
Net income per share:
Basic (in USD per share)	$ 0.91	$ 0.73	$ 1.01	$ 0.90
Diluted (in USD per share)	$ 0.90	$ 0.72	$ 1.00	$ 0.89
Shares used in computing net income per share:
Basic (in shares)	223,248	221,660	223,104	221,493
Diluted (in shares)	225,649	223,661	225,541	223,277
Product revenues, net
Revenues:
Total revenues	$ 827,005	$ 663,851	$ 1,520,242	$ 1,269,672
Product royalty revenues
Revenues:
Total revenues	127,605	117,546	243,041	239,960
Milestone and contract revenues
Revenues:
Total revenues	$ 0	$ 130,000	$ 0	$ 135,000

Fair Value of Financial Instruments - Liabilities measured on a recurring basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Estimate of Fair Value Measurement
Fair value of financial instruments
Acquisition-related contingent consideration	$ 217,000	$ 221,000
Total liabilities	217,000	221,000
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair value of financial instruments
Acquisition-related contingent consideration	0	0
Total liabilities	0	0
Significant Other Observable Inputs (Level 2)
Fair value of financial instruments
Acquisition-related contingent consideration	0	0
Total liabilities	0	0
Significant Unobservable Inputs (Level 3)
Fair value of financial instruments
Acquisition-related contingent consideration	217,000	221,000
Total liabilities	$ 217,000	$ 221,000

Insider Trading Arrangements	3 Months Ended	6 Months Ended
Insider Trading Arrangements	Jun. 30, 2023 shares	Jun. 30, 2023 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Steven Stein [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		Steven Stein, our Executive Vice President and Chief Medical Officer, adopted a trading plan on June 5, 2023 providing for the sale of up to an aggregate of 29,154 shares of our common stock until June 5, 2024.
Name	Steven Stein
Title	Executive Vice President and Chief Medical Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	June 5, 2023
Aggregate Available	29,154	29,154

License Agreements - Lilly (Details) - USD ($) $ in Thousands	1 Months Ended			3 Months Ended		6 Months Ended		163 Months Ended
	Mar. 31, 2022	May 31, 2019	Dec. 31, 2009	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Mar. 31, 2016
License Agreements
Total revenues				$ 954,610	$ 911,397	$ 1,763,283	$ 1,644,632
OLUMIANT Royalty Revenues
License Agreements
Total revenues				32,009	30,254	66,164	78,318
Eli Lilly \| OLUMIANT
License Agreements
Total revenues				0	70,000	0	70,000
Eli Lilly \| OLUMIANT Royalty Revenues \| Non-US
License Agreements
Royalties payable on net sales				$ 32,000	$ 30,300	$ 66,200	$ 78,300
Development Milestones \| Eli Lilly
License Agreements
Amount recognized and received for the achievement of a predefined milestone								$ 149,000
Development Milestones \| Maximum \| Eli Lilly
License Agreements
Upfront and immediate milestone payment to be received under license agreement			$ 150,000
Regulatory Milestones \| Eli Lilly
License Agreements
Amount recognized and received for the achievement of a predefined milestone								335,000
Regulatory Milestones \| Eli Lilly \| GVHD
License Agreements
Milestone payment made under license agreement		$ 20,000
Regulatory Milestones \| Eli Lilly \| GVHD \| Europe
License Agreements
Milestone payment made under license agreement	$ 20,000
Regulatory Milestones \| Maximum \| Eli Lilly
License Agreements
Upfront and immediate milestone payment to be received under license agreement			365,000
Regulatory Milestones \| Maximum \| Eli Lilly \| GVHD
License Agreements
Additional milestone payments under the license agreement									$ 40,000
Commercialization Milestones \| Eli Lilly
License Agreements
Amount recognized and received for the achievement of a predefined milestone								$ 50,000
Commercialization Milestones \| Maximum \| Eli Lilly
License Agreements
Upfront and immediate milestone payment to be received under license agreement			$ 150,000

Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Revenues (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenues
Total revenues	$ 954,610	$ 911,397	$ 1,763,283	$ 1,644,632
Product revenues, net
Revenues
Total revenues	827,005	663,851	1,520,242	1,269,672
JAKAFI
Revenues
Total revenues	682,384	597,673	1,262,353	1,142,137
OPZELURA
Revenues
Total revenues	80,233	16,560	136,785	29,314
ICLUSIG
Revenues
Total revenues	29,087	26,224	56,772	52,293
PEMAZYRE
Revenues
Total revenues	21,572	18,983	44,047	37,015
MINJUVI
Revenues
Total revenues	13,159	4,411	19,715	8,913
ZYNYZ
Revenues
Total revenues	570	0	570	0
Product royalty revenues
Revenues
Total revenues	127,605	117,546	243,041	239,960
JAKAVI Royalty Revenues
Revenues
Total revenues	90,448	83,711	167,140	154,578
OLUMIANT Royalty Revenues
Revenues
Total revenues	32,009	30,254	66,164	78,318
TABRECTA Royalty Revenues
Revenues
Total revenues	4,799	3,581	8,976	7,064
PEMAZYRE Royalty Revenues
Revenues
Total revenues	349	0	761	0
Milestone and contract revenues
Revenues
Total revenues	$ 0	$ 130,000	$ 0	$ 135,000

Fair Value of Financial Instruments - Marketable securities portfolio (Details) - Debt securities (government) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Summary of marketable security portfolio
Amortized Cost	$ 294,371	$ 292,580
Net Unrealized Losses	(2,128)	(5,037)
Estimated Fair Value	$ 292,243	$ 287,543
Minimum
Summary of marketable security portfolio
Contractual maturity dates	12 months
Maximum
Summary of marketable security portfolio
Contractual maturity dates	18 months

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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+ Details

Property and Equipment, net (Tables)

6 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

Schedule of property and equipment, net

Property and equipment, net consists of the following (in thousands):


	June 30, 2023		December 31, 2022
Office equipment	$	23,182	$	22,734
Laboratory equipment	202,929		192,141
Computer equipment	121,048		92,115
Land	10,581		10,429
Building and leasehold improvements	571,694		564,170
Operating lease right-of-use assets	24,528		23,311
Construction in progress	34,534		47,224
	988,496		952,124
Less accumulated depreciation and amortization	(239,144)		(212,814)
Property and equipment, net	$	749,352	$	739,310

Income Taxes - Additional Information (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)
Income Tax Disclosure [Abstract]
Unrecognized tax benefits current and prior period tax positions	$ 4.2
Interest and penalties	2.8
Reductions related to prior period tax positions	$ 7.1

Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Summary of marketable securities portfolio

The following is a summary of our marketable security portfolio for the periods presented (in thousands):


	Amortized Cost		Net Unrealized Losses		Estimated Fair Value
June 30, 2023
Debt securities (government)	$	294,371	$	(2,128)	$	292,243

December 31, 2022
Debt securities (government)	$	292,580	$	(5,037)	$	287,543

Schedule of fair value of assets measured on recurring basis

The following fair value hierarchy table presents information about each major category of our financial assets measured at fair value on a recurring basis (in thousands):


	Fair Value Measurement at Reporting Date Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of June 30, 2023
Cash and cash equivalents	$	3,131,123	$	—	$	—	$	3,131,123
Debt securities (government)	—		292,243		—		292,243
Long term investments (Note 7)	170,316		—		—		170,316
Total assets	$	3,301,439	$	292,243	$	—	$	3,593,682


	Fair Value Measurement at Reporting Date Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2022
Cash and cash equivalents	$	2,951,422	$	—	$	—	$	2,951,422
Debt securities (government)	—		287,543		—		287,543
Long term investments (Note 7)	133,676		—		—		133,676
Total assets	$	3,085,098	$	287,543	$	—	$	3,372,641

Schedule of fair value of liabilities measured on recurring basis

The following fair value hierarchy table presents information about each major category of our financial liabilities measured at fair value on a recurring basis as (in thousands):


	Fair Value Measurement at Reporting Date Using:
	Quoted Prices in Active Markets for Identical Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of June 30, 2023
Acquisition-related contingent consideration	$	—	$	—	$	217,000	$	217,000
Total liabilities	$	—	$	—	$	217,000	$	217,000


	Fair Value Measurement at Reporting Date Using:
	Quoted Prices in Active Markets for Identical Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2022
Acquisition-related contingent consideration	$	—	$	—	$	221,000	$	221,000
Total liabilities	$	—	$	—	$	221,000	$	221,000

Schedule of roll forward of Level 3 liabilities

The following is a rollforward of our Level 3 liabilities (in thousands):


	2023
Balance at January 1,	$	221,000
Contingent consideration earned during the period but not yet paid	(18,570)

Change in fair value of contingent consideration	14,570
Balance at June 30,	$	217,000

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

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Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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+ Details

Net Income Per Share (Tables)

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Schedule of calculation of net income (loss) per share

Net income per share was calculated as follows for the periods indicated below:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Basic net income	$	203,548	$	161,432	$	225,251	$	199,424

Weighted average common shares outstanding	223,248		221,660		223,104		221,493

Basic net income per share	$	0.91	$	0.73	$	1.01	$	0.90

Diluted net income	$	203,548	$	161,432	$	225,251	$	199,424

Weighted average common shares outstanding	223,248		221,660		223,104		221,493
Dilutive stock options and awards	2,401		2,001		2,437		1,784
Weighted average shares used to compute diluted net income per share	225,649		223,661		225,541		223,277

Diluted net income per share	$	0.90	$	0.72	$	1.00	$	0.89

Schedule of antidilutive securities excluded from the computation of earnings per share

The potential common shares that were excluded from the diluted net income per share computation are as follows:


	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
Outstanding stock options and awards	12,806,418	10,767,335	10,781,677	10,901,507

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands

Jun. 30, 2023

Dec. 31, 2022

^[1]

Current assets:

Cash and cash equivalents

$ 3,131,123

$ 2,951,422

Marketable securities—available-for-sale (amortized cost $294,371 and $292,580 as of June 30, 2023 and December 31, 2022, respectively; allowance for credit losses $0 as of June 30, 2023 and December 31, 2022)

292,243

287,543

Accounts receivable

637,994

644,879

Inventory

35,937

41,995

Prepaid expenses and other current assets

167,136

167,011

Total current assets

4,264,433

4,092,850

Restricted cash

1,719

1,698

Long term investments

170,316

133,676

Inventory

142,048

78,964

Property and equipment, net

749,352

739,310

Finance lease right-of-use assets, net

25,631

26,298

Other intangible assets, net

134,954

129,219

Goodwill

155,593

Deferred income tax asset

532,507

457,941

Other assets, net

31,706

25,435

Total assets

6,208,259

5,840,984

Current liabilities:

Accounts payable

155,538

277,546

Accrued compensation

111,708

138,761

Accrued and other current liabilities

810,852

701,053

Finance lease liabilities

3,166

3,179

37,509

36,538

Total current liabilities

1,118,773

1,157,077

179,491

184,462

Finance lease liabilities

29,491

30,083

Other liabilities

139,812

99,243

Total liabilities

1,467,567

1,470,865

Commitments and contingencies

Stockholders’ equity:

Preferred stock, $0.001 par value; 5,000,000 shares authorized; none issued or outstanding

Common stock, $0.001 par value; 400,000,000 shares authorized; 223,338,330 and 222,746,719 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively

223

Additional paid-in capital

4,925,626

4,792,041

Accumulated other comprehensive income

26,806

15,069

Accumulated deficit

(211,963)

(437,214)

Total stockholders’ equity

4,740,692

4,370,119

Total liabilities and stockholders’ equity

$ 6,208,259

$ 5,840,984

[1]	The condensed consolidated balance sheet at December 31, 2022 has been derived from the audited consolidated financial statements at that date.

Concentration of Credit Risk and Current Expected Credit Losses

6 Months Ended

Jun. 30, 2023

Risks and Uncertainties [Abstract]

Concentration of Credit Risk and Current Expected Credit Losses

Note 5. Concentration of Credit Risk and Current Expected Credit Losses

In November 2009, we entered into a collaboration and license agreement with Novartis Pharmaceutical International Ltd. (“Novartis”). In December 2009, we entered into a license, development and commercialization agreement with Eli Lilly and Company (“Lilly”). The above collaboration partners comprised, in aggregate, 20% and 20% of the accounts receivable balance as of June 30, 2023 and December 31, 2022, respectively. For further information relating to these collaboration and license agreements, refer to Note 7.

In November 2011, we began commercialization and distribution of JAKAFI, in April 2020, we began commercialization and distribution of PEMAZYRE, and in October 2021, we began commercialization and distribution of OPZELURA. Our product revenues are concentrated in a number of these customers. The concentration of credit risk related to our JAKAFI, PEMAZYRE and OPZELURA product revenues is as follows:


	Percentage of Total Net Product Revenues for the Three Months Ended				Percentage of Total Net Product Revenues for the Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Customer A	16	%	19	%	17	%	19	%
Customer B	9	%	12	%	10	%	12	%
Customer C	20	%	16	%	19	%	18	%
Customer D	10	%	10	%	10	%	10	%
Customer E	11	%	14	%	11	%	15	%

We are exposed to risks associated with extending credit to customers related to the sale of products. Customers A, B, C, D, and E comprised, in aggregate, 35% and 41% of the accounts receivable balance as of June 30, 2023 and December 31, 2022, respectively. The concentration of credit risk relating to our other product revenues or accounts receivable is not significant.

We assessed our collaborative and customer receivable assets as of June 30, 2023 according to our accounting policy for applying reserves for expected credit losses, noting minimal history of uncollectible receivables and the continued perceived creditworthiness of our third party sales relationships, upon which the expected credit losses were considered de minimis. As of June 30, 2023 and December 31, 2022, we had no allowance for doubtful accounts.

License Agreements - MacroGenics (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended
	Mar. 31, 2023	Jul. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
License Agreements
Research and development			$ 400,750	$ 347,196	$ 807,391	$ 700,569
MacroGenics
License Agreements
Research and development			12,100	$ 14,800	29,900	$ 28,300
MacroGenics \| Accrued Liabilities
License Agreements
Accrued and other liabilities			200		$ 200		$ 2,900
MacroGenics \| Minimum
License Agreements
Royalty payments on future global net sales (as a percent)					15.00%
MacroGenics \| Maximum
License Agreements
Royalty payments on future global net sales (as a percent)					24.00%
Regulatory Milestone \| MacroGenics
License Agreements
Milestone payment made under license agreement	$ 15,000
Milestone payment, estimated useful life					13 years 6 months
Development and Regulatory Milestones \| MacroGenics \| Maximum
License Agreements
Additional milestone payments under the license agreement			320,000		$ 320,000
Development Milestones \| MacroGenics
License Agreements
Milestone payment made under license agreement		$ 30,000
Developmental And Regulatory Milestones \| MacroGenics
License Agreements
Milestone payment made under license agreement					115,000
Commercialization Milestones \| MacroGenics \| Maximum
License Agreements
Additional milestone payments under the license agreement			$ 330,000		$ 330,000

Stock Compensation - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Stock compensation
Stock compensation expense	$ 54.5	$ 46.5	$ 107.9	$ 90.3
Dividend yield (as a percent)			0.00%
Assumed annualized forfeiture rate (as a percent)			5.00%
Share-based Payment Arrangement, Option
Stock compensation
Stock option grant term			10 years
Vesting period			4 years
Percentage of units vesting at the end of each calendar year (as a percent)			25.00%
Unrecognized compensation cost for nonvested option (in dollars)	34.5		$ 34.5
Vesting period of recognition of the unrecognized compensation cost of nonvested awards			1 year 1 month 6 days
Share-based Payment Arrangement, Option \| Share-based Payment Arrangement, Tranche One
Stock compensation
Vesting period			1 year
Share-based Payment Arrangement, Option \| Share-based Payment Arrangement, Tranche Two
Stock compensation
Vesting period			36 months
Restricted Stock Units (RSUs)
Stock compensation
Vesting period			4 years
Percentage of units vesting at the end of each calendar year (as a percent)			25.00%
Number of shares awarded for each RSU (in shares)			1
Unrecognized compensation cost for nonvested option (in dollars)	175.0		$ 175.0
Vesting period of recognition of the unrecognized compensation cost of nonvested awards			1 year 7 months 6 days
Performance Shares
Stock compensation
Stock compensation expense	2.7	0.1	$ 9.2	1.9
Unrecognized compensation cost for nonvested option (in dollars)	28.2		$ 28.2
Vesting period of recognition of the unrecognized compensation cost of nonvested awards			1 year 4 months 24 days
Performance Shares \| Minimum
Stock compensation
Vesting period			3 years
Performance Shares \| Maximum
Stock compensation
Vesting period			4 years
Research and Development Expense
Stock compensation
Stock compensation expense	32.8	28.1	$ 63.8	54.4
Selling, General and Administrative Expenses
Stock compensation
Stock compensation expense	20.9	17.7	42.5	34.6
Cost of Sales
Stock compensation
Stock compensation expense	$ 0.8	$ 0.7	$ 1.6	$ 1.3

Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Retirement Benefits [Abstract]
Defined contribution expense	$ 4.0	$ 4.7	$ 9.6	$ 9.6
Location of costs excluding the service component			Interest income and other, net
Current year expected contributions total	$ 8.0		$ 8.0

Net Income Per Share

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Net Income Per Share

Note 12. Net Income Per Share

Net income per share was calculated as follows for the periods indicated below:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Basic net income	$	203,548	$	161,432	$	225,251	$	199,424

Weighted average common shares outstanding	223,248		221,660		223,104		221,493

Basic net income per share	$	0.91	$	0.73	$	1.01	$	0.90

Diluted net income	$	203,548	$	161,432	$	225,251	$	199,424

Weighted average common shares outstanding	223,248		221,660		223,104		221,493
Dilutive stock options and awards	2,401		2,001		2,437		1,784
Weighted average shares used to compute diluted net income per share	225,649		223,661		225,541		223,277

Diluted net income per share	$	0.90	$	0.72	$	1.00	$	0.89

The potential common shares that were excluded from the diluted net income per share computation are as follows:


	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
Outstanding stock options and awards	12,806,418	10,767,335	10,781,677	10,901,507

Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income before provision for income taxes	$ 277,604	$ 229,378	$ 329,460	$ 299,913
Provision for income taxes	$ 74,056	$ 67,946	$ 104,209	$ 100,489
Effective tax rate	26.70%	29.60%	31.60%	33.50%

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(11))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483586/944-220-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 235
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479557/942-235-S99-1

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section 25
-Paragraph 1
-SubTopic 20
-Topic 940
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481913/940-20-25-1

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483621/220-10-S99-2

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 942
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

+ Details

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Inventory (Details) - USD ($)
$ in Thousands

6 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Raw materials

$ 32,630

$ 31,874

Work-in-process

122,971

54,455

Finished goods

22,384

34,630

Total inventory

177,985

120,959

Inventories - current

35,937

41,995

^[1]

Inventories-noncurrent

142,048

$ 78,964

^[1]

Inventory incurred prior to FDA approval

$ 32,600

Minimum

Period of lower average per unit cost of materials

12 months

Maximum

Period of lower average per unit cost of materials

18 months

[1]	The condensed consolidated balance sheet at December 31, 2022 has been derived from the audited consolidated financial statements at that date.

Concentration of Credit Risk and Current Expected Credit Losses (Tables)

6 Months Ended

Jun. 30, 2023

Risks and Uncertainties [Abstract]

Schedule of concentration of credit risk related to collaborative partners

The concentration of credit risk related to our JAKAFI, PEMAZYRE and OPZELURA product revenues is as follows:


	Percentage of Total Net Product Revenues for the Three Months Ended				Percentage of Total Net Product Revenues for the Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Customer A	16	%	19	%	17	%	19	%
Customer B	9	%	12	%	10	%	12	%
Customer C	20	%	16	%	19	%	18	%
Customer D	10	%	10	%	10	%	10	%
Customer E	11	%	14	%	11	%	15	%

Fair Value of Financial Instruments - Narrative (Details) - ARIAD $ in Millions		6 Months Ended	12 Months Ended
	Jun. 01, 2016	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Accrued and other current liabilities
Fair value of financial instruments
Contingent consideration earned during the period but not yet paid		$ (18.6)	$ (9.3)
Liability
Fair value of financial instruments
Projected cash flows period	18 years
Liability \| Measurement Input, Discount Rate
Fair value of financial instruments
Valuation input (as a percent)	0.10	0.10	0.10

License Agreements	6 Months Ended
License Agreements	Jun. 30, 2023
License Agreements
License Agreements	Note 7. License Agreements Novartis In November 2009, we entered into a Collaboration and License Agreement with Novartis. Under the terms of the agreement, Novartis received exclusive development and commercialization rights outside of the United States to our JAK inhibitor ruxolitinib and certain back-up compounds for hematologic and oncology indications, including all hematological malignancies, solid tumors and myeloproliferative diseases. We retained exclusive development and commercialization rights to JAKAFI (ruxolitinib) in the United States and in certain other indications. Novartis also received worldwide exclusive development and commercialization rights to our MET inhibitor compound capmatinib and certain back-up compounds in all indications. Under this agreement, we were initially eligible to receive up to $174.0 million for the achievement of development milestones, up to $495.0 million for the achievement of regulatory milestones and up to $500.0 million for the achievement of sales milestones. In addition, we are eligible to receive up to $75.0 million of additional potential development and regulatory milestones relating to graft-versus-host-disease (“GVHD”). Since the inception of the agreement through June 30, 2023, we have recognized and received, in the aggregate, $157.0 million for the achievement of development milestones, $340.0 million for the achievement of regulatory milestones, and $200.0 million for the achievement of sales milestones. We also are eligible to receive tiered, double-digit royalties ranging from the upper-teens to the mid-twenties on future JAKAVI net sales outside of the United States, and tiered, worldwide royalties on TABRECTA net sales that range from 12% to 14%. We are obligated to pay to Novartis tiered royalties in the low single-digits on future JAKAFI net sales within the United States contingent on certain conditions. During the three and six months ended June 30, 2023, such royalties on net sales within the United States totaled $33.5 million and $56.9 million, respectively, and were reflected in cost of product revenues on the condensed consolidated statements of operations. During the three and six months ended June 30, 2022, such royalties on net sales within the United States totaled $29.3 million and $51.0 million, respectively, and were reflected in cost of product revenues on the condensed consolidated statements of operations. At June 30, 2023 and December 31, 2022, $310.3 million and $253.5 million, respectively, of accrued royalties were included in accrued and other current liabilities on the condensed consolidated balance sheets, payment of which is dependent on the outcome of a contract dispute with Novartis. Each company is responsible for costs relating to the development and commercialization of ruxolitinib in its respective territories, with costs of collaborative studies shared equally. Novartis is also responsible for all costs relating to the development and commercialization of capmatinib. We had no milestone and contract revenue under the Novartis agreement for the three and six months ended June 30, 2023. Milestone and contract revenue under the Novartis agreement was $60.0 million for both the three and six months ended June 30, 2022. Product royalty revenue related to Novartis net sales of JAKAVI outside of the United States for the three and six months ended June 30, 2023 was $90.4 million and $167.1 million, respectively. Product royalty revenue related to Novartis net sales of JAKAVI outside of the United States for the three and six months ended June 30, 2022 was $83.7 million and $154.6 million, respectively. Product royalty revenue related to Novartis net sales of TABRECTA worldwide for the three and six months ended June 30, 2023 was $4.8 million and $9.0 million, respectively. Product royalty revenue related to Novartis net sales of TABRECTA worldwide for the three and six months ended June 30, 2022 was $3.6 million and $7.1 million, respectively. Lilly – Baricitinib In December 2009, we entered into a License, Development and Commercialization Agreement with Lilly. Under the terms of the agreement, Lilly received exclusive worldwide development and commercialization rights to our JAK inhibitor baricitinib, and certain back-up compounds for inflammatory and autoimmune diseases. Under this agreement, we were initially eligible to receive up to $150.0 million for the achievement of development milestones, up to $365.0 million for the achievement of regulatory milestones and up to $150.0 million for the achievement of sales milestones. Since the inception of the agreement through June 30, 2023, we have recognized and received, in aggregate, $149.0 million for the achievement of development milestones, $335.0 million for the achievement of regulatory milestones and $50.0 million for the achievement of sales milestones. We are also eligible to receive tiered, double-digit royalties on future global sales with rates ranging up to the mid-twenties if a product is successfully commercialized. In May 2020, we amended our agreement with Lilly to enable Lilly to develop and commercialize baricitinib for the treatment of COVID-19. As part of the amended agreement, in addition to the royalties described above, we will be entitled to receive additional royalty payments with rates in the low teens on global net sales of baricitinib for the treatment of COVID-19 that exceed a specified aggregate global net sales threshold. We had no milestone and contract revenue under the Lilly agreement for the three and six months ended June 30, 2023. Milestone and contract revenue under the Lilly agreement was $70.0 million for both the three and six months ended June 30, 2022. Product royalty revenue related to Lilly net sales of OLUMIANT outside of the United States for the three and six months ended June 30, 2023 was $32.0 million and $66.2 million, respectively. Product royalty revenue related to Lilly net sales of OLUMIANT outside of the United States for the three and six months ended June 30, 2022 was $30.3 million and $78.3 million, respectively. Lilly - Ruxolitinib In March 2016, we entered into an amendment to the agreement with Lilly that amended the non-compete provision of the agreement to allow us to engage in the development and commercialization of ruxolitinib in the GVHD field. Lilly was eligible to receive up to $40.0 million in regulatory milestone payments relating to ruxolitinib in the GVHD field. In May 2019, the approval of JAKAFI in steroid-refractory acute GVHD triggered a $20.0 million milestone payment to Lilly. In March 2022, the positive recommendation from the European Medicines Agency for regulatory approval of ruxolitinib in the GVHD field triggered an additional $20.0 million milestone payment to Lilly, which was recorded as research and development expense in our condensed consolidated statements of operations for the three months ended March 31, 2022. Agenus In January 2015, we entered into a License, Development and Commercialization Agreement with Agenus Inc. and its wholly-owned subsidiary, 4-Antibody AG (now known as Agenus Switzerland Inc.), which we collectively refer to as Agenus. Under this agreement, which was amended in February 2017, the parties have agreed to collaborate on the discovery of novel immuno-therapeutics using Agenus’ antibody discovery platforms. Under the terms of the amended agreement, we received exclusive worldwide development and commercialization rights to four checkpoint modulators directed against GITR, OX40, LAG-3 and TIM-3 as well as two undisclosed targets. Targets may be designated profit-share programs, where all costs and profits are shared equally by us and Agenus, or royalty-bearing programs, where we are responsible for all costs associated with discovery, preclinical, clinical development and commercialization activities. There are currently no profit-share programs. For each royalty-bearing product other than GITR and one undisclosed target, Agenus will be eligible to receive tiered royalties on global net sales ranging from 6% to 12%. For GITR and one undisclosed target, Agenus will be eligible to receive 15% royalties on global net sales. The agreement may be terminated by us for convenience upon 12 months’ notice and may also be terminated under certain other circumstances, including material breach. On October 19, 2022 we notified Agenus that we were terminating the OX40 project. Since the inception of the agreement through June 30, 2023, we have paid Agenus milestones totaling $30.0 million, and Agenus is eligible to receive up to an additional $500.0 million in future contingent development, regulatory and commercialization milestones across all programs in the collaboration. As of June 30, 2023, we held an investment of approximately 12.1 million shares of Agenus Inc. common stock. The fair market value of our long term investment in Agenus Inc. at June 30, 2023 and December 31, 2022 was $19.3 million and $29.0 million, respectively. For the three and six months ended June 30, 2023, we recorded an unrealized gain of $0.9 million and an unrealized loss of $9.7 million, respectively, based on the change in fair value of Agenus Inc.’s common stock during the respective periods. For the three and six months ended June 30, 2022, we recorded an unrealized loss of $6.3 million and $15.4 million, respectively, based on the change in fair value of Agenus Inc.’s common stock during the respective periods. During May 2023, Agenus Inc. distributed a dividend of shares it owned of its publicly traded subsidiary MiNK Therapeutics' ("MiNK") common stock to shareholders who held Agenus Inc. shares. As a result, we acquired approximately 0.2 million shares of MiNK common stock. The fair market value of our long term investment in MiNK at June 30, 2023 was $0.4 million, and during the three months ended June 30, 2023, and we recorded an unrealized gain of $0.2 million based on the change in fair value of MiNK’s common stock during the period. Merus In December 2016, we entered into a Collaboration and License Agreement with Merus N.V. (“Merus”). Under this agreement, the parties have agreed to collaborate with respect to the research, discovery and development of bispecific antibodies utilizing Merus’ technology platform. The collaboration encompasses up to ten independent programs. In January 2022, we decided to opt-out of the continued development of MCLA-145, a bispecific antibody targeting PD-L1 and CD137. We continue to collaborate with Merus and leverage the Merus platform to develop a pipeline of novel agents, as we continue to hold worldwide exclusive development and commercialization rights to up to ten additional programs. Of these ten additional programs, Merus retained the option, subject to certain conditions, to co-fund development of up to two such programs. If Merus exercises its co-funding option for a program, Merus would be responsible for funding 35% of the associated future global development costs and, for certain of such programs, would be responsible for reimbursing us for certain development costs incurred prior to the option exercise. Merus will also have the right to participate in a specified proportion of detailing activities in the United States for one of those co-developed programs. All costs related to the co-funded collaboration programs are subject to joint research and development plans and overseen by a joint development committee, but we will have final determination as to such plans in cases of dispute. We will be responsible for all research, development and commercialization costs relating to all other programs. For each program as to which Merus does not have commercialization or development co-funding rights, Merus is eligible to receive up to $100.0 million in future contingent development and regulatory milestones, and up to $250.0 million in commercialization milestones as well as tiered royalties ranging from 6% to 10% of global net sales. For each program as to which Merus exercises its option to co-fund development, Merus is eligible to receive a 50% share of profits (or sustain 50% of any losses) in the United States and be eligible to receive tiered royalties ranging from 6% to 10% of net sales of products outside of the United States. If Merus opts to cease co-funding a program as to which it exercised its co-development option, then Merus will no longer receive a share of profits in the United States but will be eligible to receive the same milestones from the co-funding termination date and the same tiered royalties described above with respect to programs where Merus does not have a right to co-fund development and, depending on the stage at which Merus chose to cease co-funding development costs, Merus will be eligible to receive additional royalties ranging up to 4% of net sales in the United States. In January 2023, we paid Merus a milestone of $2.5 million, which was recorded as research and development expense in our condensed consolidated statements of operations during the three months ended March 31, 2023. Since the inception of the agreement through June 30, 2023, we have paid and expensed Merus milestones totaling $5.5 million. As of June 30, 2023, we held an investment of approximately 3.6 million common shares. The fair market value of our total long term investment in Merus at June 30, 2023 and December 31, 2022 was $93.5 million and $54.9 million, respectively. For the three and six months ended June 30, 2023, we recorded an unrealized gain of $28.2 million and $38.6 million, respectively, based on the change in fair value of Merus’ common shares during the respective periods. For the three and six months ended June 30, 2022, we recorded an unrealized loss of $13.5 million and $32.5 million, respectively, based on the change in fair value of Merus’ common shares during the respective periods. MacroGenics In October 2017, we entered into a Global Collaboration and License Agreement with MacroGenics, Inc. (“MacroGenics”). Under this agreement, we received exclusive development and commercialization rights worldwide to MacroGenics’ INCMGA0012 (formerly MGA012), an investigational monoclonal antibody that inhibits PD-1. Except as set forth in the succeeding sentence, we have sole authority over and bear all costs and expenses in connection with the development and commercialization of INCMGA0012 in all indications, whether as a monotherapy or as part of a combination regimen. MacroGenics has retained the right to develop and commercialize, at its cost and expense, its pipeline assets in combination with INCMGA0012. In addition, MacroGenics has the right to manufacture a portion of both companies’ global clinical and commercial supply needs of INCMGA0012. In July 2022, we amended our agreement with MacroGenics to reflect changes related to the payment of certain milestones and paid MacroGenics $30.0 million, which was previously recorded as research and development expense in our condensed consolidated statements of operations in the third quarter of 2022. In March 2023, we made a $15.0 million regulatory milestone payment to MacroGenics for the FDA approval of ZYNYZ for the treatment of adults with Merkel cell carcinoma. This milestone payment was capitalized as an intangible asset and included in Other intangible assets, net on the condensed consolidated balance sheet as of June 30, 2023, and is being amortized through cost of product revenues over the estimated useful life of 13.5 years. Since the inception of the agreement through June 30, 2023, we have paid MacroGenics developmental and regulatory milestones totaling $115.0 million. After the amendment and subsequent payments, MacroGenics will be eligible to receive up to an additional $320.0 million in future contingent development and regulatory milestones, and up to $330.0 million in sales milestones as well as tiered royalties ranging from 15% to 24% of global net sales. Research and development expenses for the three and six months ended June 30, 2023 also included $12.1 million and $29.9 million, respectively, of development costs incurred pursuant to the MacroGenics agreement. Research and development expenses for the three and six months ended June 30, 2022 also included $14.8 million and $28.3 million, respectively, of development costs incurred pursuant to the MacroGenics agreement. At June 30, 2023 and December 31, 2022, a total of $0.2 million and $2.9 million of such costs were included in accrued and other liabilities on the condensed consolidated balance sheets. Syros In January 2018, we entered into a Target Discovery, Research Collaboration and Option Agreement with Syros Pharmaceuticals, Inc. (“Syros”). Under this agreement, Syros will use its proprietary gene control platform to identify novel therapeutic targets with a focus in myeloproliferative neoplasms and we have received options to obtain exclusive worldwide rights to intellectual property resulting from the collaboration for up to seven validated targets. We will have exclusive worldwide rights to develop and commercialize any therapies under the collaboration that modulate those validated targets. We have agreed to pay Syros up to $54.0 million in target selection and option exercise fees should we decide to exercise all of our options under the agreement. For products resulting from the collaboration against each of the seven selected and validated targets, we have agreed to pay up to $50.0 million in potential development and regulatory milestones and up to $65.0 million in potential sales milestones. Syros is also eligible to receive low single-digit royalties on net sales of products resulting from the collaboration. As of June 30, 2023, we held an investment of approximately 0.1 million shares of Syros common stock. The fair market value of our long term investment in Syros as of June 30, 2023 and December 31, 2022 was $0.3 million and $0.3 million, respectively. For the three and six months ended June 30, 2023, we recorded a nominal unrealized loss and an unrealized loss of $0.1 million, respectively, based on the change in fair value of Syros’ common stock during the respective periods. For the three and six months ended June 30, 2022, we recorded an unrealized loss of $0.2 million and $2.2 million, respectively, based on the change in fair value of Syros’ common stock during the respective periods. MorphoSys In January 2020, we entered into a Collaboration and License Agreement with MorphoSys AG and MorphoSys US Inc., a wholly-owned subsidiary of MorphoSys AG (together with MorphoSys AG, “MorphoSys”), covering the worldwide development and commercialization of MOR208 (tafasitamab), an investigational Fc engineered monoclonal antibody directed against the target molecule CD19 that was under clinical development by MorphoSys at the beginning of the agreement, and has subsequently been commercialized as MONJUVI/MINJUVI. MorphoSys has exclusive worldwide development and commercialization rights to tafasitamab under a June 2010 collaboration and license agreement with Xencor, Inc. Under the terms of the agreement, we received exclusive commercialization rights outside of the United States, and MorphoSys and we have co-commercialization rights in the United States, with respect to tafasitamab. MorphoSys is responsible for leading the commercialization strategy and booking all revenue from sales of tafasitamab in the United States, and we and MorphoSys are both responsible for commercialization efforts in the United States and will share equally the profits and losses from the co-commercialization efforts. We will lead the commercialization strategy outside of the United States, and will be responsible for commercialization efforts and book all revenue from sales of tafasitamab outside of the United States, subject to our royalty payment obligations set forth below. We and MorphoSys have agreed to co-develop tafasitamab and to share development costs associated with global and U.S.-specific clinical trials, with Incyte responsible for 55% of such costs and MorphoSys responsible for 45% of such costs. Each company is responsible for funding any independent development activities, and we are responsible for funding development activities specific to territories outside of the United States. All development costs related to the collaboration are subject to a joint development plan. MorphoSys is eligible to receive up to $737.5 million in future contingent development and regulatory milestones and up to $315.0 million in commercialization milestones as well as tiered royalties ranging from the mid-teens to mid-twenties of net sales outside of the United States. MorphoSys’ right to receive royalties in any particular country will expire upon the last to occur of (a) the expiration of patent rights in that particular country, (b) a specified period of time after the first post-marketing authorization sale of a licensed product comprising tafasitamab in that country, and (c) the expiration of any regulatory exclusivity for that licensed product in that country. Since the inception of the agreement through June 30, 2023, we have paid MorphoSys milestones totaling $2.5 million, all of which have previously been recorded as research and development expenses. As of June 30, 2023, we held an investment of approximately 3.6 million American Depository Shares, each representing 0.25 of an ordinary share of MorphoSys AG. The fair market value of our long term investment in MorphoSys AG as of June 30, 2023 and December 31, 2022 was $27.1 million and $13.0 million, respectively. For the three and six months ended June 30, 2023, we recorded an unrealized gain of $12.7 million and $14.1 million, respectively, based on the change in fair value of MorphoSys AG's ordinary shares during the respective periods. For the three and six months ended June 30, 2022, we recorded an unrealized loss of $7.1 million and $16.7 million, respectively, based on the change in fair value of MorphoSys AG's ordinary shares during the respective periods. Our 50% share of the United States profit or loss for the commercialization of tafasitamab for the three and six months ended June 30, 2023 was a profit of $0.5 million and $1.9 million, respectively, and is recorded as (profit) and loss sharing under collaboration agreements on the condensed consolidated statement of operations. Our 50% share of the United States loss for the commercialization of tafasitamab for the three and six months ended June 30, 2022 was $2.5 million and $7.3 million, respectively, and is recorded as (profit) and loss sharing under collaboration agreements on the condensed consolidated statement of operations. Research and development expenses for the three and six months ended June 30, 2023, includes $20.3 million and $45.5 million, respectively, related to our 55% share of the co-development costs for tafasitamab. Research and development expenses for the three and six months ended June 30, 2022, includes $27.5 million and $48.5 million, respectively, related to our 55% share of the co-development costs for tafasitamab. At June 30, 2023 and December 31, 2022, $39.3 million and $28.5 million, respectively, was included in accrued and other liabilities on the condensed consolidated balance sheets for amounts due to MorphoSys under the agreement. Syndax In September 2021, we entered into a Collaboration and License Agreement with Syndax Pharmaceuticals, Inc. (“Syndax”), covering the worldwide development and commercialization of SNDX-6352 (“axatilimab”). Axatilimab, currently in clinical development by Syndax, is a monoclonal antibody that blocks the colony stimulating factor-1 (CSF-1) receptor. Syndax has exclusive worldwide development and commercialization rights to axatilimab under a June 2016 license agreement with UCB Biopharma Sprl. The agreement became effective in December 2021. Under the terms of the agreement, we received exclusive commercialization rights outside of the United States, and Syndax and we have co-commercialization rights in the United States, with respect to axatilimab. We will be responsible for leading the commercialization strategy and booking all revenue from sales of axatilimab globally. Incyte and Syndax will share equally the profits and losses from the co-commercialization efforts in the United States. Sales of axatilimab outside the United States will be subject to our royalty payment obligations to Syndax, as set forth below. We and Syndax have agreed to co-develop axatilimab and to share development costs associated with global and U.S.-specific clinical trials, with Incyte responsible for 55% of such costs and Syndax responsible for 45% of such costs. Each company is responsible for funding any independent development activities. All development costs related to the collaboration are subject to a joint development plan. In December 2021, we paid Syndax an upfront, non-refundable payment of $117.0 million, which was recorded in research and development expense on the consolidated statement of operations for the year ended December 31, 2021. Syndax is eligible to receive up to $220.0 million in future contingent development and regulatory milestones and up to $230.0 million in sales milestones as well as tiered royalties ranging in the mid-teens on net sales in Europe and Japan and low double digit percentage on net sales in the rest of the world outside of the United States. Syndax’ right to receive royalties in any particular country will expire upon the last to occur of (a) the expiration of patent rights in that particular country, (b) a specified period of time after the first post-marketing authorization sale of a licensed product comprising axatilimab in that country, and (c) the expiration of any regulatory exclusivity for that licensed product in that country. As of June 30, 2023, we held an investment of approximately 1.4 million shares of Syndax common stock. The fair market value of our long term investment in Syndax as of June 30, 2023 and December 31, 2022 was $29.8 million and $36.2 million. For the three and six months ended June 30, 2023, we recorded an unrealized loss of $0.2 million and $6.4 million, respectively, based on the change in fair value of Syndax’s common stock during the respective periods. For the three and six months ended June 30, 2022, we recorded an unrealized gain of $2.7 million and an unrealized loss of $3.8 million, respectively, based on the change in fair value of Syndax’s common stock during the respective periods. Research and development expenses for the three and six months ended June 30, 2023, includes $6.2 million and $11.8 million, respectively, related to our 55% share of the co-development costs for axatilimab. At June 30, 2023, $4.4 million was included in accrued and other liabilities on the condensed consolidated balance sheet for amounts due to Syndax under the agreement. Other Agreements In addition to the license and collaboration agreements discussed above, we have various other license and collaboration agreements that are not individually material to our operating results or financial condition at this time. Pursuant to the terms of those agreements, we may be required to pay, or we may receive, additional amounts contingent upon the occurrence of various future events such as future discovery, development, regulatory or commercial milestones, which in the aggregate could be material. In addition, if any products related to these collaborations are approved for sale, we may be required to pay, or we may receive, royalties on future sales. The payment or receipt of these amounts, however, is contingent upon the occurrence of various future events, the likelihood of which cannot presently be determined.

Concentration of Credit Risk and Current Expected Credit Losses (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Concentration of risk
Allowance for doubtful accounts	$ 0.0		$ 0.0		$ 0.0
Revenue, Product and Service Benchmark \| Customer Concentration Risk \| Customer A
Concentration of risk
Percentage of concentration risk	16.00%	19.00%	17.00%	19.00%
Revenue, Product and Service Benchmark \| Customer Concentration Risk \| Customer B
Concentration of risk
Percentage of concentration risk	9.00%	12.00%	10.00%	12.00%
Revenue, Product and Service Benchmark \| Customer Concentration Risk \| Customer C
Concentration of risk
Percentage of concentration risk	20.00%	16.00%	19.00%	18.00%
Revenue, Product and Service Benchmark \| Customer Concentration Risk \| Customer D
Concentration of risk
Percentage of concentration risk	10.00%	10.00%	10.00%	10.00%
Revenue, Product and Service Benchmark \| Customer Concentration Risk \| Customer E
Concentration of risk
Percentage of concentration risk	11.00%	14.00%	11.00%	15.00%
Accounts Receivable \| Credit Concentration Risk \| Collaboration Partner A, B, C and D
Concentration of risk
Percentage of concentration risk			20.00%		20.00%
Accounts Receivable \| Credit Concentration Risk \| Customer A, B, C, D, and E
Concentration of risk
Percentage of concentration risk			35.00%		41.00%

Organization and Business (Details)	6 Months Ended
Organization and Business (Details)	Jun. 30, 2023 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	1

Organization and Business	6 Months Ended
Organization and Business	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Business	Note 1. Organization and Business Incyte Corporation (including its subsidiaries, “Incyte,” “we,” “us,” or “our”) is a biopharmaceutical company focused on developing and commercializing proprietary therapeutics. Our portfolio includes compounds in various stages, ranging from preclinical to late stage development, and commercialized products JAKAFI® (ruxolitinib), ICLUSIG® (ponatinib), PEMAZYRE® (pemigatinib), OPZELURA™ (ruxolitinib cream), MINJUVI® (tafasitamab), MONJUVI® (tafasitamab-cxix), which is co-commercialized, and ZYNYZ™ (retifanlimab-dlwr). Our operations are treated as one operating segment.

Employee Benefit Plans

6 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

Employee Benefit Plans

Note 13. Employee Benefit Plans

Defined Contribution Plans

We have a defined contribution plan qualified under Section 401(k) of the Internal Revenue Code covering all U.S. employees and defined contribution plans for other Incyte employees in Europe and Japan. Employees may contribute a portion of their compensation, which is then matched by us, subject to certain limitations. Defined contribution expense for the three and six months ended June 30, 2023 was $4.0 million and $9.6 million, respectively. Defined contribution expense for the three and six months ended June 30, 2022 was $4.7 million and $9.6 million, respectively.

Defined Benefit Pension Plans

We have defined benefit pension plans for our employees in Europe which provide benefits to employees upon retirement, death or disability. The assets of the pension plans are held in collective investment accounts represented by the cash surrender value of an insurance policy and are classified as Level 2 within the fair value hierarchy.

The net periodic benefit cost was as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Service cost	$	1,733	$	2,438	$	3,821	$	4,960
Interest cost	44		62		661		126
Expected return on plan assets	(736)		(1,035)		(2,276)		(2,106)
Amortization of prior service cost	276		193		379		387
Amortization of actuarial losses	(90)		89		—		177
Net periodic benefit cost	$	1,227	$	1,747	$	2,585	$	3,544

The components of net periodic benefit cost other than the service cost component are included in Interest income and other, net on the condensed consolidated statements of operations. We expect to contribute a total of $8.0 million to the pension plans in 2023 inclusive of the amounts contributed to the plan during the current period.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480266/715-60-50-3

+ Details

Employee Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

Schedule of net periodic benefit cost

The net periodic benefit cost was as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Service cost	$	1,733	$	2,438	$	3,821	$	4,960
Interest cost	44		62		661		126
Expected return on plan assets	(736)		(1,035)		(2,276)		(2,106)
Amortization of prior service cost	276		193		379		387
Amortization of actuarial losses	(90)		89		—		177
Net periodic benefit cost	$	1,227	$	1,747	$	2,585	$	3,544

Net Income Per Share - Antidilutive securities (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-Based Payment Arrangement
Anti-dilutive securities
Outstanding stock options and awards	12,806,418	10,767,335	10,781,677	10,901,507

Income Taxes

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Note 11. Income Taxes

For the three and six months ended June 30, 2023 and 2022, we recorded the following provisions for income taxes and effective tax rates as compared to our income before provision for income taxes:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Income before provision for income taxes	$	277,604	$	229,378	$	329,460	$	299,913
Provision for income taxes	74,056		67,946		104,209		100,489

Effective tax rate	26.7%		29.6%		31.6%		33.5%

Our effective tax rate for each of the three and six months ended June 30, 2023 and 2022 was higher than the U.S. statutory rate primarily due to foreign losses with no associated tax benefit (i.e., full valuation allowance) and an increase in our valuation allowance against certain U.S. federal and state deferred tax assets offset to a lesser extent by tax rate benefits associated with research and development and orphan drug tax credit generations and foreign derived intangible income deductions.

The effective tax rate for the three and six months ended June 30, 2023 decreased as compared to that for the prior year periods due to a greater tax benefit recognized in 2023 associated with research and development and orphan drug tax credit generations.

The balance of our unrecognized tax benefits (including penalties and interest) decreased marginally during the six months ended June 30, 2023. This movement was primarily driven by additions to current and prior period tax positions of $4.2 million, as well as $2.8 million of interest and penalties, offset by reductions related to prior period tax positions of $7.1 million. We accrue interest and penalties related to unrecognized tax benefits as a component of its provision for income taxes.

In August 2022, the Inflation Reduction Act of 2022 (“IRA”) was enacted into law. The IRA includes a 15% corporate alternative minimum tax and a 1% excise tax on share repurchases. We do not expect the IRA to have a material impact on our consolidated financial statements.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
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+ Details

Revenues (Tables)

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Schedule of disaggregated revenue

Revenues are recognized under guidance within ASC 606, Revenue from Contracts with Customers. The following table presents our disaggregated revenue for the periods presented (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
JAKAFI revenues, net	$	682,384	$	597,673	$	1,262,353	$	1,142,137
OPZELURA revenues, net	80,233		16,560		136,785		29,314
ICLUSIG revenues, net	29,087		26,224		56,772		52,293
PEMAZYRE revenues, net	21,572		18,983		44,047		37,015
MINJUVI revenues, net	13,159		4,411		19,715		8,913
ZYNYZ revenues, net	570		—		570		—
Total product revenues, net	827,005		663,851		1,520,242		1,269,672
JAKAVI product royalty revenues	90,448		83,711		167,140		154,578
OLUMIANT product royalty revenues	32,009		30,254		66,164		78,318
TABRECTA product royalty revenues	4,799		3,581		8,976		7,064
PEMAZYRE product royalty revenues	349		—		761		—
Total product royalty revenues	127,605		117,546		243,041		239,960
Milestone and contract revenues	—		130,000		—		135,000
Total revenues	$	954,610	$	911,397	$	1,763,283	$	1,644,632

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 203,548	$ 161,432	$ 225,251	$ 199,424
Other comprehensive income (loss):
Foreign currency translation gain (loss)	5,189	(1,837)	8,449	(2,619)
Unrealized gain (loss) on marketable securities, net of tax	489	(1,094)	2,909	(4,187)
Defined benefit pension gain, net of tax	186	282	379	564
Other comprehensive income (loss)	5,864	(2,649)	11,737	(6,242)
Comprehensive income	$ 209,412	$ 158,783	$ 236,988	$ 193,182

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The condensed consolidated balance sheet as of June 30, 2023, the condensed consolidated statements of operations, comprehensive income (loss), and stockholders’ equity for the three and six months ended June 30, 2023 and 2022, and the condensed consolidated statements of cash flows for the six months ended June 30, 2023 and 2022, are unaudited, but include all adjustments, consisting only of normal recurring adjustments, which we consider necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The condensed consolidated balance sheet at December 31, 2022 has been derived from our audited consolidated financial statements. Although we believe that the disclosures in these financial statements are adequate to make the information presented not misleading, certain information and footnote information normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. Results for any interim period are not necessarily indicative of results for any future interim period or for the entire year. The accompanying financial statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022.
Principles of Consolidation	Principles of Consolidation. The condensed consolidated financial statements include the accounts of Incyte Corporation and our wholly owned subsidiaries. All inter-company accounts, transactions, and profits have been eliminated in consolidation.
Use of Estimates	Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
Other Intangible Assets, net	Other Intangible Assets, net. Other intangible assets, net consist of licensed intellectual property rights acquired in business combinations, which are reported at acquisition date fair value, less accumulated amortization, as well as milestone payments made to collaboration partners incurred at or after the product has obtained regulatory approval. Intangible assets with finite lives are amortized over their estimated useful lives using the straight-line method. Intangible assets with finite lives are tested for recoverability whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable.
Cost of Product Revenues	Cost of Product Revenues. Cost of product revenues includes all product related costs and royalties owed under our collaboration and license agreements, contingent on certain conditions. In addition, cost of product revenues includes the amortization of our licensed intellectual property for ICLUSIG and the amortization of capitalized milestone payments, using the straight-line method over the respective estimated useful lives, which range between approximately 11 to 14 years. Cost of product revenues also includes employee personnel costs, including stock compensation, for those employees dedicated to the production of our commercial products.
Recent Accounting Pronouncements	Recent Accounting PronouncementsThere were no new accounting pronouncements issued nor adopted since our filing of the Annual Report on Form 10-K for the year ended December 31, 2022, which could have a significant effect on our condensed consolidated financial statements.

- Definition

Disclosure of accounting policy for revenue from contract with customer.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-17

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
-Section 50
-Paragraph 19
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-19

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
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-Paragraph 18
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-18

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-18

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 20
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-20

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Paragraph 20
-Subparagraph (b)
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-URI https://asc.fasb.org//1943274/2147479806/606-10-50-20

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 20
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-20

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
-Section 50
-Paragraph 20
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Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

Cover Page - shares	6 Months Ended
Cover Page - shares	Jun. 30, 2023	Jul. 25, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-12400
Entity Registrant Name	INCYTE CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	94-3136539
Entity Address, Address Line One	1801 Augustine Cut-Off
Entity Address, City or Town	Wilmington
Entity Address, State or Province	DE
Entity Address, Postal Zip Code	19803
City Area Code	302
Local Phone Number	498-6700
Title of 12(b) Security	Common Stock, $.001 par value per share
Trading Symbol	INCY
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		224,087,695
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000879169
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Marketable securities-amortized cost	$ 294,371	$ 292,580
Marketable securities-allowance for credit losses	$ 0	$ 0
Preferred stock, par value (in USD per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in USD per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	400,000,000	400,000,000
Common stock, shares issued (in shares)	223,338,330	222,746,719
Common stock, shares outstanding (in shares)	223,338,330	222,746,719

Income Taxes (Tables)

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Schedule of effective income tax rate reconciliation

For the three and six months ended June 30, 2023 and 2022, we recorded the following provisions for income taxes and effective tax rates as compared to our income before provision for income taxes:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Income before provision for income taxes	$	277,604	$	229,378	$	329,460	$	299,913
Provision for income taxes	74,056		67,946		104,209		100,489

Effective tax rate	26.7%		29.6%		31.6%		33.5%

License Agreements - Agenus (Details) - USD ($)
$ in Thousands

1 Months Ended

3 Months Ended

6 Months Ended

102 Months Ended

Feb. 28, 2017

Jun. 30, 2023

Jun. 30, 2022

Jun. 30, 2023

Jun. 30, 2022

Jun. 30, 2023

May 31, 2023

Dec. 31, 2022

License Agreements

Fair market long term investments

$ 170,316

$ 133,676

^[1]

Unrealized gain (loss) on long term investments

$ 41,811

$ (24,897)

$ 36,493

$ (71,482)

Agenus

License Agreements

Common stock held from investment (in shares)

12,100,000

Fair market long term investments

$ 19,300

$ 29,000

Unrealized gain (loss) on long term investments

900

$ (6,300)

(9,700)

$ (15,400)

MiNK

License Agreements

Fair market long term investments

400

Unrealized gain (loss) on long term investments

200

Shares acquired due to distribution of dividend (in shares)

200,000

Agenus

License Agreements

Period of notice for termination of license agreement

12 months

Agenus | Development, Regulatory and Commercialization Milestones

License Agreements

Milestone payment made under license agreement

30,000

Additional milestone payments under the license agreement

$ 500,000

Royalty-bearing product other than GITR, OX40 and one undisclosed target | Minimum | Agenus

License Agreements

Royalty payments on future global net sales (as a percent)

6.00%

Royalty-bearing product other than GITR, OX40 and one undisclosed target | Maximum | Agenus

License Agreements

Royalty payments on future global net sales (as a percent)

12.00%

Royalty-bearing product GITR, OX40 and one undisclosed target | Maximum | Agenus

License Agreements

Royalty payments on future global net sales (as a percent)

15.00%

[1]	The condensed consolidated balance sheet at December 31, 2022 has been derived from the audited consolidated financial statements at that date.

License Agreements - Syndax (Details) - USD ($)
$ in Thousands

1 Months Ended

3 Months Ended

6 Months Ended

Dec. 31, 2021

Sep. 30, 2021

Jun. 30, 2023

Jun. 30, 2022

Jun. 30, 2023

Jun. 30, 2022

Dec. 31, 2022

License Agreements

Fair market long term investments

$ 170,316

$ 133,676

^[1]

Unrealized gain (loss) on long term investments

41,811

$ (24,897)

36,493

$ (71,482)

Research and development

$ 400,750

347,196

$ 807,391

700,569

Investment in Syndax

License Agreements

Common stock held from investment (in shares)

1,400,000

Fair market long term investments

$ 29,800

$ 36,200

Unrealized gain (loss) on long term investments

(200)

$ 2,700

(6,400)

$ (3,800)

Syndax

License Agreements

Upfront payment under license agreement

$ 117,000

Research and development

6,200

11,800

Syndax | Accrued Liabilities

License Agreements

Accrued and other liabilities

4,400

Syndax | Development and Regulatory Milestones | Maximum

License Agreements

Additional milestone payments under the license agreement

220,000

Syndax | Commercialization Milestones | Maximum

License Agreements

Additional milestone payments under the license agreement

$ 230,000

Syndax | Incyte

License Agreements

Funding of future development costs (as a percent)

55.00%

UNITED STATES | Syndax | Syndax

License Agreements

Funding of future development costs (as a percent)

45.00%

UNITED STATES | Syndax | Incyte

License Agreements

Funding of future development costs (as a percent)

55.00%

[1]	The condensed consolidated balance sheet at December 31, 2022 has been derived from the audited consolidated financial statements at that date.

Accrued and Other Current Liabilities

6 Months Ended

Jun. 30, 2023

Payables and Accruals [Abstract]

Accrued and Other Current Liabilities

Note 9. Accrued and Other Current Liabilities

Accrued and other current liabilities consisted of the following (in thousands):


	June 30, 2023		December 31, 2022
Royalties	$	321,816	$	263,466
Clinical related costs	137,780		130,570
Sales allowances	224,474		192,133
Sales and marketing	29,006		31,149
Construction in progress	4,420		3,493
Operating lease liabilities	7,084		8,195
Other current liabilities	86,272		72,047
Total accrued and other current liabilities	$	810,852	$	701,053