Incyte Corporation Reports $32.6M Net Income Decline Despite $4.2B Revenue Increase in 2024

Incyte Corporation reported net income of $32.6 million for the year ended December 31, 2024, a significant decrease from the $597.6 million reported in 2023. Total revenues for 2024 reached $4.2 billion, a slight increase compared to $3.7 billion in 2023. This increase was primarily driven by growth in JAKAFI and OPZELURA revenues, which increased to $2.8 billion and $508.3 million, respectively, from $2.6 billion and $337.9 million in 2023. The increase in JAKAFI revenue resulted from both volume and price increases, while OPZELURA's growth was fueled by new patient starts and refills, with approximately $60.7 million in revenue originating from Europe.

Significant changes compared to the previous fiscal year included a substantial decrease in net income, despite the revenue increase. This was partially attributed to increased research and development expenses, which rose to $2.6 billion in 2024 from $1.6 billion in 2023, largely due to continued investment in late-stage development assets and expenses related to the Escient Pharmaceuticals acquisition. The acquisition of Escient, completed in May 2024 for $782.5 million, also contributed to increased selling, general, and administrative expenses and a loss on the change in fair value of acquisition-related contingent consideration. The company also completed a share repurchase program in June 2024, repurchasing approximately 33.3 million shares for roughly $2 billion.

Strategic developments during the year included the February 2024 acquisition of exclusive global rights to tafasitamab (MONJUVI/MINJUVI) from MorphoSys for $25 million. Incyte also acquired Villaris Therapeutics in November 2022 and Escient Pharmaceuticals in May 2024, expanding its pipeline and capabilities. The FDA approved several new indications for existing products, including ZYNYZ (retifanlimab-dlwr) for Merkel cell carcinoma and NIKTIMVO (axatilimab-csfr) for chronic graft-versus-host disease. The company also initiated several Phase 1 and Phase 2 clinical trials for new drug candidates targeting various cancers and dermatological conditions.

Key operational developments included the U.S. commercial launch of NIKTIMVO at the end of January 2025. As of December 31, 2024, Incyte employed 2,617 people, a 4% increase from the previous year. The company's geographic employee distribution was 72% in the U.S. and Canada, 26% in Europe, and 2% in Asia. The filing also notes ongoing litigation related to patent infringement claims for JAKAFI and OPZELURA.

Incyte's outlook is contingent upon several factors, including the continued success of its existing products, the successful development and launch of new products, and the ability to secure adequate coverage and reimbursement from third-party payers. The company anticipates continued investment in research and development and expects to incur significant expenses in the future. The filing highlights numerous risks, including competition, regulatory hurdles, and the uncertainties inherent in drug development and commercialization.