Incyte misses quarterly profit estimates due to higher costs
(Reuters) — Incyte (NASDAQ:INCY) Corp on Tuesday reported fourth-quarter profit below Wall Street estimates, hit by higher costs related to its products such as skin disorder drug Opzelura and forecast weak sales for its lead product Jakafi this year.
Delaware-based Incyte is seeking to strengthen its dermatological pipeline through Opzelura, as it braces for a loss of exclusivity for Jakafi later in the decade.
On an adjusted basis, the company said its selling and administrative expenses for the reported quarter increased 7%, driven by costs towards promoting Opzelura as treatment of vitiligo.
Sales of Opzelura, which is approved by U.S. health regulator to treat vitiligo and mild to moderate atopic dermatitis in patients 12 years of age and older, rose 78% to $109.24 million, beating estimates of $102.42 million.
Sales of Jakafi, which is approved to treat bone marrow related illnesses, were hit due to an increase in the number of patients enrolled in a type of government-backed insurance plans receiving free products.
The U.S. drugmaker expects to record 2024 sales of Jakafi between $2.69 billion to $2.75 billion, compared with analysts estimates of $2.79 billion.
Sales from Jakafi were $695.13 million during the quarter ended Dec. 31, short of estimates of $702.91 million, according to LSEG estimates.
Incyte recorded a total revenue of $1.01 billion for the October-to-December quarter, which was largely in line with estimates.
Excluding items, the company earned $1.06 per share, compared with estimates of $1.16 per share, according to LSEG data.
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