Incyte’s third quarter saw revenue and profit surpass Wall Street’s expectations, yet the market responded negatively. Management identified robust demand for key drugs Jakafi and Opzelura, alongside the launch traction of Niktimvo, as major contributors to the quarter’s strong operational performance. CEO William Meury emphasized the company’s ongoing cost discipline and strategic investment in core R&D programs. He noted, “Our job right now is to keep [the fundamentals] that way and to identify effective ways to optimize the promotional strategies and investment for these products to drive future growth.”
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Incyte (INCY) Q3 CY2025 Highlights:
- Revenue: $1.37 billion vs analyst estimates of $1.26 billion (20% year-on-year growth, 8.5% beat)
- Adjusted EPS: $2.26 vs analyst estimates of $1.64 (38% beat)
- Adjusted EBITDA: $467.5 million vs analyst estimates of $399.8 million (34.2% margin, 16.9% beat)
- Operating Margin: 32.5%, up from 12.8% in the same quarter last year
- Market Capitalization: $19.94 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Incyte’s Q3 Earnings Call
- Tazeen Ahmad (Bank of America) pressed for clarity on the efficacy benchmarks needed for single-agent activity in the mCALR antibody program. President Pablo Cagnoni explained, “It’s very important for us to demonstrate that there is single-agent activity with 989,” pointing to established clinical and translational endpoints.
- Andrew Berens (Leerink Partners) questioned the rationale for terminating the povorcitinib program in chronic spontaneous urticaria. CEO William Meury cited a focus on higher-return projects, while Cagnoni added that regulatory requirements made continued investment less attractive.
- Stephen Willey (Stifel) asked about upcoming data releases for 989 and the implications of Sanofi’s failed trial for Niktimvo’s ongoing frontline studies. Management responded that their endpoints and trial designs are robust and tailored to address clinical needs.
- Jay Olson (Oppenheimer) inquired about the decision to end the BET inhibitor program and the timeline for advancing mCALR into registrational studies. Cagnoni confirmed pivotal trials for essential thrombocythemia are planned for the first half of next year, with myelofibrosis studies to follow.
- Salveen Richter (Goldman Sachs) asked about molecular endpoints (such as VAF reduction) and the margin outlook post-Jakafi. Cagnoni described how molecular and clinical endpoints will guide regulatory discussions, while Meury emphasized ongoing efforts to streamline costs and improve margins.
Catalysts in Upcoming Quarters
Looking ahead, our analyst team will be monitoring (1) progress toward pivotal data and regulatory filings for late-stage pipeline assets, especially mCALR antibody and povorcitinib; (2) the pace of international expansion for Opzelura, including European regulatory milestones; and (3) continued adoption and line-of-therapy progression for Niktimvo. Updates on operating cost discipline and progress in pipeline reprioritization will also be key signposts.
Incyte currently trades at $105.76, up from $93.10 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members).
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