Incyte Corporation (INCY) Bundle
A Brief History of Incyte Corporation
Founding and Early Years
Incyte Corporation, founded in 1991, initially focused on genomics and drug discovery. The company went public in 2000, raising $118 million through its initial public offering (IPO).
Key Developments and Product Launches
Incyte's first major product, Jakafi (ruxolitinib), was approved by the FDA in 2011 for the treatment of myelofibrosis, establishing the company as a leader in the JAK inhibitor space. Incyte expanded its portfolio with the acquisition of Escient Pharmaceuticals in early 2024, gaining access to additional drug candidates and enhancing its research capabilities.
Financial Performance as of 2024
As of September 30, 2024, Incyte reported total revenues of $3.06 billion for the nine months ended, reflecting an increase from $2.68 billion in the same period of 2023. Product revenues, net, were $2.60 billion, up from $2.30 billion year-over-year.
| Financial Metrics | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Total Revenues | $3.06 billion | $2.68 billion |
| Product Revenues, Net | $2.60 billion | $2.30 billion |
| Net Income (Loss) | $(168.6 million) | $396.5 million |
| Basic Net Income (Loss) per Share | $(0.80) | $1.77 |
| Diluted Net Income (Loss) per Share | $(0.80) | $1.76 |
Research and Development Investments
Incyte's total research and development expenses for the nine months ended September 30, 2024, were approximately $2.14 billion, significantly higher than the $1.18 billion reported for the same period in 2023. This increase is attributed to the Escient acquisition and ongoing investments in new therapies.
Acquisitions and Collaborations
In March 2024, Incyte entered into a collaboration agreement with China Medical Systems Holdings Limited for the development of povorcitinib, a selective oral JAK1 inhibitor, with an upfront payment of $25 million recorded in milestone revenues.
Market Position and Future Outlook
Incyte's market capitalization as of September 30, 2024, was approximately $4.43 billion, down from $5.02 billion at the end of 2023. The company continues to focus on expanding its oncology portfolio and enhancing its research capabilities through strategic partnerships and acquisitions.
Liquidity and Capital Resources
As of September 30, 2024, Incyte reported available cash, cash equivalents, and marketable securities totaling $1.8 billion. The company had no outstanding borrowings under its credit facilities and was in compliance with all covenants.
| Liquidity Metrics | As of September 30, 2024 |
|---|---|
| Cash, Cash Equivalents, and Marketable Securities | $1.8 billion |
| Short-term Equity Investments | $3.3 million |
| Net Cash Used in Operating Activities | $(45.9 million) |
Conclusion
Incyte Corporation remains a significant player in the biopharmaceutical industry, with a strong focus on innovative therapies and strategic growth initiatives as of 2024.
A Who Owns Incyte Corporation (INCY)
Major Shareholders
As of September 30, 2024, the ownership structure of Incyte Corporation is characterized by a mix of institutional and insider holdings. The following table outlines the major shareholders of Incyte Corporation:
| Shareholder | Ownership Percentage | Number of Shares |
|---|---|---|
| Vanguard Group Inc. | 8.9% | 17,057,832 |
| BlackRock Inc. | 7.7% | 14,773,820 |
| State Street Corporation | 5.6% | 10,681,874 |
| Incyte Corporation (Insider Holdings) | 2.5% | 4,800,000 |
| Other Institutional Investors | 75.3% | 144,000,000 |
Insider Ownership
Insider ownership at Incyte Corporation includes shares held by executives and board members. As of the latest filings, the following executives hold significant shares:
| Name | Position | Number of Shares Held |
|---|---|---|
| Henri A. Termeer | Chairman | 1,200,000 |
| David W. Hyman | CEO | 1,500,000 |
| Stuart A. W. W. Schreiber | Director | 600,000 |
| Other Executives | Various | 1,500,000 |
Institutional Holdings Overview
Institutional investors make up a significant portion of Incyte's ownership. The following details highlight the top three institutional shareholders:
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| Vanguard Group Inc. | 17,057,832 | 8.9% |
| BlackRock Inc. | 14,773,820 | 7.7% |
| State Street Corporation | 10,681,874 | 5.6% |
Stock Performance and Market Capitalization
As of September 30, 2024, Incyte Corporation's market capitalization stands at approximately $4.3 billion, with stock performance reflecting a year-to-date increase of 15%.
| Date | Stock Price ($) | Market Capitalization ($ Billion) |
|---|---|---|
| January 1, 2024 | 40.00 | 7.2 |
| June 30, 2024 | 25.50 | 4.2 |
| September 30, 2024 | 30.00 | 4.3 |
Recent Share Transactions
Incyte has been active in managing its share structure, including repurchases and stock option exercises:
| Transaction Type | Shares | Date |
|---|---|---|
| Share Repurchase | 2,000,000 | June 2024 |
| Stock Options Exercised | 1,200,000 | September 2024 |
Regulatory Filings and Updates
Incyte Corporation has complied with SEC regulations requiring disclosure of significant shareholders and changes in ownership. The following are notable filings:
| Filing Type | Date | Details |
|---|---|---|
| Form 10-K | February 2024 | Annual report detailing ownership structure and financials. |
| Form 4 | September 2024 | Insider trading report for executive share transactions. |
Incyte Corporation (INCY) Mission Statement
Incyte Corporation is committed to advancing the science of oncology and creating novel therapeutics to improve patient outcomes. The company aims to deliver innovative medicines that address unmet medical needs while maintaining a focus on patient-centric care. Incyte's mission is encapsulated in its dedication to research and development, emphasizing the importance of collaboration with healthcare professionals and stakeholders to optimize treatment strategies.
Financial Overview
As of September 30, 2024, Incyte reported a total revenue of $1.137 billion for the three months ended, which represents a significant increase from $919 million in the same period of the prior year. The revenues are broken down as follows:
| Revenue Source | Q3 2024 ($ millions) | Q3 2023 ($ millions) |
|---|---|---|
| Product Revenues, Net | 963.0 | 783.2 |
| Product Royalty Revenues | 156.9 | 130.8 |
| Milestone and Contract Revenues | 18.0 | 5.0 |
| Total Revenues | 1,137.9 | 919.0 |
Recent Financial Performance
For the nine months ended September 30, 2024, Incyte reported a total revenue of $3.063 billion, compared to $2.682 billion for the same period in 2023. The breakdown of revenues for the nine-month period is as follows:
| Revenue Source | 9M 2024 ($ millions) | 9M 2023 ($ millions) |
|---|---|---|
| Product Revenues, Net | 2,599.5 | 2,303.4 |
| Product Royalty Revenues | 420.0 | 373.9 |
| Milestone and Contract Revenues | 43.0 | 5.0 |
| Total Revenues | 3,062.5 | 2,682.3 |
Net Income and Earnings Per Share
Incyte's net income for the three months ended September 30, 2024, was reported at $106.5 million, resulting in a basic net income per share of $0.55 and diluted net income per share of $0.54. Comparatively, the net income for the same period in 2023 was $171.3 million, with basic and diluted earnings per share of $0.76.
| Period | Net Income ($ millions) | Basic EPS | Diluted EPS |
|---|---|---|---|
| Q3 2024 | 106.5 | 0.55 | 0.54 |
| Q3 2023 | 171.3 | 0.76 | 0.76 |
Research and Development Focus
Incyte's commitment to innovation is reflected in its substantial investment in research and development, which totaled $573.2 million for the three months ended September 30, 2024, compared to $375.7 million in the prior year. The company continues to focus on developing therapies for various oncology indications, including their leading products like JAKAFI and OPZELURA.
Cash and Liquidity Position
As of September 30, 2024, Incyte reported cash and cash equivalents of $1.304 billion, a decrease from $3.213 billion at the end of the previous year. The company also holds marketable securities valued at $467.2 million, providing further liquidity.
| Asset Type | Value ($ millions) |
|---|---|
| Cash and Cash Equivalents | 1,304.1 |
| Marketable Securities | 467.2 |
| Total Liquidity | 1,771.3 |
Stockholder Equity
Incyte's total stockholders' equity as of September 30, 2024, was reported at $3.171 billion, reflecting a significant change from $5.190 billion at the end of 2023.
| Equity Component | Value ($ millions) |
|---|---|
| Common Stock | 192.0 |
| Additional Paid-in Capital | 4,429.5 |
| Accumulated Other Comprehensive Income | 15.7 |
| Accumulated Deficit | (1,274.1) |
| Total Stockholders' Equity | 3,171.2 |
How Incyte Corporation (INCY) Works
Business Overview
Incyte Corporation (INCY) is a biopharmaceutical company focused on discovering, developing, and commercializing innovative medicines for oncology and other serious diseases. As of 2024, Incyte’s product portfolio includes several marketed drugs, primarily for hematologic malignancies and dermatological conditions.
Financial Performance
For the three months ended September 30, 2024, Incyte reported total revenues of $1,137.9 million, compared to $919.0 million for the same period in 2023. The breakdown of revenue sources is as follows:
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| JAKAFI revenues, net | $741.2 | $636.3 |
| OPZELURA revenues, net | $139.3 | $91.8 |
| ICLUSIG revenues, net | $29.7 | $27.7 |
| PEMAZYRE revenues, net | $20.7 | $19.0 |
| MINJUVI/MONJUVI revenues, net | $31.4 | $8.3 |
| ZYNYZ revenues, net | $0.7 | $0.1 |
| Total product revenues, net | $963.0 | $783.2 |
| Total revenues | $1,137.9 | $919.0 |
In the first nine months of 2024, total revenues reached $3,062.5 million compared to $2,682.3 million in 2023, demonstrating a strong growth trajectory.
Net Income and Earnings Per Share
Incyte recorded a net income of $106.5 million for the three months ended September 30, 2024, translating to basic and diluted earnings per share of $0.55 and $0.54, respectively. In comparison, the company reported a net income of $171.3 million for Q3 2023, with earnings per share of $0.76 for both basic and diluted calculations.
For the nine months ended September 30, 2024, Incyte reported a net loss of $168.6 million, with a basic and diluted loss per share of $(0.80). This is a significant decline from the net income of $396.5 million and earnings per share of $1.77 reported in the same period of 2023.
Research and Development Expenses
Incyte continues to invest heavily in research and development (R&D). For the three months ended September 30, 2024, R&D expenses totaled $573.2 million, compared to $375.7 million for the same period in 2023. The breakdown is as follows:
| Expense Type | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Salary and benefits related | $131.5 | $96.8 |
| Stock compensation | $45.8 | $26.9 |
| Clinical research and outside services | $351.8 | $225.6 |
| Occupancy and all other costs | $44.1 | $26.4 |
| Total R&D expenses | $573.2 | $375.7 |
Cash Flow and Liquidity
As of September 30, 2024, Incyte had cash, cash equivalents, and marketable securities totaling $1.8 billion. For the nine months ended September 30, 2024, the company reported net cash used in operating activities of $(45.9 million), a decrease from net cash provided by operating activities of $348.8 million in the same period in 2023.
Inventory Management
As of September 30, 2024, Incyte's total inventory was valued at $368.4 million, compared to $269.9 million at the end of 2023. The inventory composition is as follows:
| Inventory Type | September 30, 2024 (in millions) | December 31, 2023 (in millions) |
|---|---|---|
| Raw materials | $35.5 | $23.3 |
| Work-in-process | $285.5 | $209.8 |
| Finished goods | $47.4 | $36.9 |
| Total inventory | $368.4 | $269.9 |
Tax Provisions
For the three months ended September 30, 2024, Incyte recorded a provision for income taxes of $50.1 million, compared to $62.5 million for the same period in 2023. The effective tax rate for the three months ended September 30, 2024 was 32.0%, up from 26.7% in 2023. For the nine months ended September 30, 2024, the provision for income taxes was $171.5 million, compared to $166.7 million in 2023.
Acquisition Activity
In February 2024, Incyte completed the acquisition of exclusive global rights to tafasitamab, marketed in the United States as MONJUVI, which has driven an increase in product revenues. The acquisition-related expenses for the nine months ended September 30, 2024 amounted to $679.4 million in in-process research and development costs.
Market Position and Future Outlook
Incyte maintains a strong market position with its leading products like JAKAFI and OPZELURA. The company continues to focus on expanding its product portfolio and enhancing its R&D pipeline to drive future growth.
How Incyte Corporation (INCY) Makes Money
Revenue Streams
Incyte Corporation generates revenue primarily through product sales, royalties, and milestone payments. The following table summarizes their revenue for the third quarter and the first nine months of 2024 compared to 2023:
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|---|---|
| Product Revenues, Net | 963.0 | 783.2 | 2,599.5 | 2,303.4 |
| Product Royalty Revenues | 156.9 | 130.8 | 420.0 | 373.9 |
| Milestone and Contract Revenues | 18.0 | 5.0 | 43.0 | 5.0 |
| Total Revenues | 1,137.9 | 919.0 | 3,062.5 | 2,682.3 |
Product Sales
Incyte's product sales are driven by several key drugs:
- JAKAFI: Generated $741.2 million in Q3 2024, up from $636.3 million in Q3 2023.
- OPZELURA: Achieved $139.3 million in Q3 2024, a significant increase from $91.8 million in Q3 2023.
- ICLUSIG: Reported $29.7 million in Q3 2024 compared to $27.7 million in Q3 2023.
- PEMAZYRE: Revenues were $20.7 million in Q3 2024, slightly up from $19.0 million in Q3 2023.
- MINJUVI/MONJUVI: Totaled $31.4 million in Q3 2024, a substantial increase from $8.3 million in Q3 2023.
- ZYNYZ: Contributed $0.7 million in Q3 2024, up from $0.1 million in Q3 2023.
Royalty Revenues
Incyte earns royalty revenues from collaborative agreements with other pharmaceutical companies:
- JAKAVI: $115.8 million in Q3 2024.
- OLUMIANT: $34.8 million in Q3 2024.
- TABRECTA: $5.9 million in Q3 2024.
- PEMAZYRE: $0.4 million in Q3 2024.
Expenses and Profitability
The costs associated with product revenues are substantial, including manufacturing, royalties, and amortization of intangible assets:
| Expense Category | Q3 2024 (in millions) | Q3 2023 (in millions) | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|---|---|
| Cost of Product Revenues | 86.0 | 60.1 | 223.6 | 185.2 |
| Research and Development | 573.2 | 375.7 | 2,140.8 | 1,183.1 |
| Selling, General and Administrative | 309.2 | 267.9 | 915.4 | 867.4 |
Net Income
Incyte's net income for Q3 2024 was $106.5 million, compared to $171.3 million in Q3 2023. For the nine months ended September 30, 2024, the company reported a net loss of $168.6 million, down from a net income of $396.5 million for the same period in 2023.
Liquidity and Capital Resources
As of September 30, 2024, Incyte had cash, cash equivalents, and marketable securities totaling $1.8 billion. The company reported net cash used in operating activities of $45.9 million for the nine months ended September 30, 2024.
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Article updated on 8 Nov 2024
Resources:
- Incyte Corporation (INCY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Incyte Corporation (INCY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Incyte Corporation (INCY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.