US stock markets: Incyte shares climb over 8% on $2 billion stock buyback plan

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ALSO READ: Wall Street today: US stocks rise as investors eye inflation data “This tender offer reflects our confidence in the future outlook of our business, the strength of our commercial product portfolio and our clinical development pipeline and Incyte’s long-term value. We believe the current valuation of Incyte stock makes repurchases of our stock an attractive investment and an opportunity to enhance long-term shareholder value," said Hervé Hoppenot, chief executive officer, Incyte Corp.

On April 30, the Delaware-based company had reported its first quarter profit below Wall Street estimates on weak sales of its blood cancer drug Jakafi. Jakafi sales fell 1 per cent to $571.8 million in the first quarter.

Its total revenue stood at $880.90 million, below Wall Street estimates. Revenue generated by the drugmaker from royalties was $126 million, up 9 per cent from a year earlier.

Hoppenot had said: “As anticipated, the revenue growth during the quarter was offset by an inventory drawdown for Jakafi and the typical first-quarter net pricing dynamics." During the first quarter, Incyte had gained worldwide exclusive global rights for Monjuvi, approved by the FDA for the treatment of certain kinds of blood cancer, from MorphoSys AG. Last month, the drugmaker announced that it had entered into a definitive pact to acquire Escient Pharmaceuticals, a clinical-stage company involved in the development of treatment of various skin diseases.