INCYTE CORP Q1 FY2025 earnings call

• Strong Q1 financial performance with product revenue up 26% and total revenues up 20%. Cash position at end of Q1 was $2.4 billion.
• Jakafi's net product revenue in Q1 grew 24% y/y to $709 million, with total patients up 10%. Full year guidance for Jakafi raised to $2.95-$3 billion.
• Upseroa's net product revenue in Q1 was $119 million, up 38% y/y, driven by growth in US, Germany, France, Italy, and Spain.
• NixTimo launched at end of January, with net product revenues of $14 million in Q1, driven by high patient need and strong commercial execution.
• R&D progress with key data readouts, including positive phase two proof of concept data for povarsitinib in CSU and positive phase three results for povarsitinib in HS.
• Manufacturing strategy to mitigate tariffs with dual sourcing for key products, and limited exposure to China for starting materials.

Product revenue grew 26% in Q1 with total revenues increasing 20% year over year to $1.05 billion. Jakafi net product revenue in Q1 was $709 million, up 24% y/y, with total patients increasing 10% compared to Q1 2024. Full year 2025 net product revenue guidance for Jakafi raised to $2.95 to $3 billion. Upseroa net product revenue in Q1 was $119 million, up 38% y/y, driven by growth in US, Germany, France, Italy, and Spain. NixTimo net product revenue in Q1 was $14 million, driven by high patient need and strong commercial execution. Jakafi's net product revenue growth reflects positive gross to net impact from inflation reduction act, partially offset by 340B growth. Upseroa's growth is due to continued US growth, increased contribution from Germany and France, and recent launches in Italy and Spain.

• Raised full year 2025 net product revenue guidance for Jakafi to $2.95 to $3 billion.
• Reiterated full year guidance for Upseroa and other hematology oncology products, COGS, R&D, and SG&A.
• R&D guidance excludes impact of recent deal with Genesis, which is expected to add $15 million to full year R&D spend.

Forward-looking statements are subject to certain risks and uncertainties, and actual results may differ materially. Risks discussed in SEC filings should be consulted for additional detail.

Q: Michael Schmidt asked about Jakafi's PV growth drivers and phase three data of a hepcid mimetic in PV.

A: Mohammed responded that PV growth drivers are new patient starts and persistency, and the phase three data is for combination use with Jakafi.

Q: David Lebowitz inquired about where Coval fits in for CSU.

A: Pablo Cagnoni said Coval will potentially address both patients who fail antihistamines and those who fail biologics.

Q: Andrew Barrons asked about placebo patients crossing over in PovO HS trial and follow-up of patients.

A: Pablo Cagnoni said they will continue following patients to 52 weeks and provided clarity on post-biologic use.

Q: Tazeen Ahmad asked about the Kellogg compound's data guidance.

A: Pablo Cagnoni said data will be presented this year with substantive data on doses, ET, and myelofibrosis.

Q: Matt Phipps asked about KALAR's curative efficacy potential and tariff IP.

A: Pablo Cagnoni discussed KALAR's data and burden reduction, and Herve Hoppenot discussed tariff mitigation and IP in US.

Q: Brian Abrahams asked about KALAR's pivotal path and HS data efficacy in IL seventeen experience patients.

A: Pablo Cagnoni said next steps for KALAR will be discussed with data, and it's hard to identify patients ahead of time.

Q: Vikram Purohit asked about JAC two b six one seven f program update and RUX XR program.

A: Pablo Cagnoni discussed JAC two b six one seven f program update, and Steven Stein discussed RUX XR's bioequivalence and approval timeline.

Q: Kripa Devarakonda asked about Povo's market penetration and HS data evolution.

A: Herve Hoppenot and Matteo Trotta discussed Povo's market segments and evolution.

Q: Madeline asked about Coval's efficacy vs MRGPRX two inhibition and backup programs.

A: Pablo Cagnoni said data comparison will be discussed later and no intention to restart backup x two program.

Q: Ash Verma asked about Manju's phase three studies in DLBCL.

A: Steven Stein discussed Manju's phase three studies and expected data availability.

Q: James Shin asked about PovO HS week eighteen update and placebo crossovers.

A: Steven Stein discussed week eighteen update and biologic exposed patient breakdown.

Q: Salim Syed asked about NixTimo sales dynamics and J cut tailwind.

A: Mohammed discussed NixTimo's launch performance and J cut tailwind.

Q: Gavin Clark-Gartner asked about TAFSA first line phase three DLBCL trial guidance.

A: Steven Stein discussed trial data timing and policy effect in DLBCL.

Q: Jay Olson asked about CDK2 inhibitor data and companion diagnostic.

A: Pablo Cagnoni discussed ASCO update and progress of companion diagnostic.

Q: Kelly Shi asked about NixTimo's patient usage and HS submission timeline.

A: Mohammed discussed NixTimo's patient usage and Steven Stein discussed HS submission timeline.

Q: Eric Schmidt asked about PovO HS week eighteen high score seventy-five and KRAS t twelve d inhibitor.

A: Steven Stein discussed high score seventy-five trend and Pablo Cagnoni discussed KRAS t twelve d inhibitor progress