Incyte (INCY -0.94%) has been on a roll so far in 2019. The biotech's shares have soared. The company reported strong first-quarter results in April.
Incyte updated investors of its performance in the second quarter on Tuesday, announcing its second-quarter results before the market opened. The company appears to be keeping its momentum going. Here's what you need to know about the biotech's Q2 results.
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By the numbers
Incyte announced Q2 revenue of $529.9 million, a 1.6% increase from the $521.5 million reported in the same quarter of the previous year. The company's reported revenue was higher than the average analysts' revenue estimate of $497.8 million.
How did Incyte's bottom line look in Q2? The company reported net income of $105.3 million under generally accepted accounting principles (GAAP), compared to $52.4 million in the same period in 2018.
Incyte also announced second-quarter adjusted non-GAAP earnings of $162 million, or $0.75 per diluted share. This marked a 19% increase from adjusted earnings of $136 million, or $0.63 per diluted share, reported in the same quarter of 2018. It also trounced the consensus analysts' estimate of Q2 adjusted earnings of $0.48 per share.
Behind the numbers
Incyte's solid results stemmed primarily from continued success for its flagship drug, Jakafi. Net revenue for Jakafi jumped 18.5% year over year to $410 million. The biotech also receives product royalties from Novartis, which markets the drug under the brand name Jakavi outside the U.S. These royalties totaled $57 million in the second quarter, up from $47 million in the prior-year period.
The company's other two approved drugs also contributed to Incyte's growth in the second quarter. Net product revenue from Iclusig jumped 20% year over year to $24 million. Product royalties for Olumiant, which Incyte licensed to Eli Lilly, soared 111% to $19 million.
Operating costs and expenses were 1.6% lower in Q2 than in the same period of 2018. Operating income rose 19% in the second quarter to $99 million from the previous year's quarter of $83 million.
One key development for Incyte during the second quarter was the FDA approval in May of Jakafi in treating steriod-refractory graft-versus-host disease (GVHD). This marked the third indication for which the drug has won approval in the U.S.
Looking ahead
Incyte now anticipates Jakafi revenue between $1.61 billion and 1.65 billion in for the full year. This reflects a narrowing from its previous guidance of $1.58 billion to $1.65 billion. The company also continues to expect that sales for Iclusig in 2019 will be between $90 million and $100 million.
Investors can also look forward to key pipeline developments for Incyte. CEO Herve Hoppenot said that the company is "on track to file a New Drug Application (NDA) seeking approval of pemigatinib in cholangiocarcinoma [also known as bile duct cancer] in the second half [of 2019], and we look forward to announcing the results of multiple pivotal trials of ruxolitinib [the active ingredient in Jakafi] and itacitinib in GVHD by year-end."
