Revenue Growth: Total revenue grew 9% in Q1 2024 compared to the same quarter the previous year, with total revenues of $881 million.
Jakafi Performance: Jakafi net product revenue of $572 million, with total patients increasing 5% in Q1 versus the same period last year. However, channel inventory reduction had a $55 million negative impact on net revenues.
Opzelura Sales: Opzelura net product revenues in Q1 were $86 million, marking a 52% increase compared to the same quarter last year.
Product Revenues: Total product revenues amounted to $730 million in Q1, driven by Jakafi, Opzelura, and an increase in revenue from Monjuvi following an acquisition.
Royalty Revenues: Total royalty revenues were $126 million, up 9% compared to Q1 2023.
Operating Expenses: Total R&D expenses were $429 million, while SG&A expenses were $300 million.
Future Guidance
Jakafi Revenue Guidance: Reiterated full year 2024 Jakafi net revenue guidance of $2.69 billion to $2.75 billion.
Expenditure on Escient Acquisition: Expected to add $20 million to $30 million to full year 2024 R&D expenses, depending on the acquisition’s closing timing.
2024 Overall Guidance: Full year 2024 guidance for other hematology/oncology products, COGS, R&D, and SG&A expenses reiterated, excluding the impact of the Escient acquisition.
Trends, Market Conditions, Sentiment
Demand Growth in Key Products: Continued demand growth for Jakafi and Opzelura showcases strong product performance and market acceptance.
Impact of Channel Inventory: A significant factor affecting net revenues for Jakafi highlights the importance of inventory management.
Cyber-Attack Impact: Opzelura sales were impacted by the Change Healthcare cyber-attack, demonstrating vulnerability to external uncertainties.
Seasonality and Market Dynamics: Typical Q1 seasonality affected Opzelura sales, noting the influence of external factors like deductible resets.
Pipeline Development: Ongoing progress with a diversified pipeline, including oncology and inflammatory diseases, indicating a strong future growth trajectory.
Acquisition Strategy: The acquisition of Escient Pharmaceuticals underlines Incyte’s strategy to strengthen its pipeline with novel therapies.
Market Leadership and Competition: Stable market share and negligible impact from competitors for Jakafi indicate strong positioning and confidence against competitive pressures.
Notable Quotes
”We are reiterating our full year 2024 Jakafi net revenue guidance of $2.69 billion to $2.75 billion."
"Opzelura net product revenues in the first quarter were $86 million, up 52% when compared to the same quarter last year."
"We expect the acquisition [of Escient] to add $20 million to $30 million to the full year 2024 R&D expenses."
"Continued strong growth with total revenues of $881 million, up 9% versus the same period last year."
"Total patient market share and discontinuation rates have remained stable in the first-line setting over the past several months, with virtually no impact from competitors.”
