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INCY · Incyte

34 filings

10-K

INCY 10-K Annual Reports

Incyte - 34 annual reports

Filing record · 2016–202610-K1510-Q348-K107

2025
Incyte Annual Report, Year Ended Dec 31, 2025
Incyte Corporation (Nasdaq: INCY) reported total revenues of $5.14 billion for 2025, up from $4.24 billion in 2024, and net income of $1,286.7 million, compared with $32.6 million in 2024. JAKAFI remains the dominant product, with net revenues of $3.09 billion in 2025, and the company states that JAKAFI product sales are expected to begin declining upon the expiration of its patent exclusivity in 2028. Product revenues from OPZELURA ($678.5 million), NIKTIMVO ($151.6 million, launched January 2025), and ZYNYZ ($66.3 million) grew, while royalty revenues from JAKAVI, OLUMIANT and TABRECTA totaled $636.9 million. Results were affected by a $242.2 million contract dispute settlement gain with Novartis and a $76.3 million asset impairment on downtown Wilmington properties, and 2025 R&D expense was $2.05 billion versus $2.61 billion in 2024, which included $679.4 million of acquired IPR&D from the Escient acquisition. The balance sheet at December 31, 2025 showed cash, cash equivalents and marketable securities of $3.58 billion, no outstanding borrowings under a $500.0 million revolving credit facility, and stockholders' equity of $5.17 billion. Operating cash flow was $1.41 billion in 2025 versus $335.3 million in 2024. The company is pursuing late-stage programs, including the ruxolitinib XR regulatory decision expected in mid-2026, povorcitinib in hidradenitis suppurativa with FDA approval potentially by early 2027, and a Phase 3 frontMIND filing for tafasitamab in first-line DLBCL planned for the first half of 2026. The filing also describes pending patent litigation against generic manufacturers for JAKAFI and OPZELURA, a $218.5 million accrual relating to a lawsuit against CMS over the OPZELURA line-extension classification, and a new CEO, William J. Meury, who joined in June 2025.
Feb 10, 2026
2024
Incyte Annual Report, Year Ended Dec 31, 2024
Incyte Corporation's 10-K for fiscal 2024 reports total revenues of $4.24 billion, up from $3.70 billion in 2023, led by JAKAFI net revenues of $2.79 billion and OPZELURA net revenues of $508.3 million. Net income fell sharply to $32.6 million from $597.6 million in 2023, largely because of a $679.4 million charge for acquired in-process research and development tied to the May 2024 Escient Pharmaceuticals acquisition, which was accounted for as an asset acquisition for $782.5 million in cash. Research and development expense rose to $2.61 billion from $1.63 billion, and income from operations was $61.4 million versus $620.5 million the prior year. Cash, cash equivalents and marketable securities declined to $2.16 billion from $3.66 billion at year-end 2023. The decline reflects a $2.0 billion share repurchase completed in June 2024 through a modified Dutch auction tender offer at $60.00 per share, plus the Escient acquisition. The company had no outstanding borrowings under its $500.0 million revolving credit facility at year-end. Management states it believes cash flow from operations and existing resources will be adequate for the foreseeable future. The filing highlights continued dependence on JAKAFI, with the company noting it anticipates JAKAFI sales will continue to contribute a significant percentage of total revenues. The company also reports an ongoing dispute with Novartis over royalties on U.S. JAKAFI sales, with accrued royalties of $507.4 million at year-end, and a lawsuit against CMS over OPZELURA's Medicaid rebate classification, for which $127.6 million was accrued. Pipeline milestones include the NIKTIMVO (axatilimab-csfr) U.S. approval in August 2024 with commercial launch at the end of January 2025, and positive Phase 3 results for tafasitamab in relapsed or refractory follicular lymphoma.
Feb 10, 2025
2023-A
Incyte Annual Report (Amendment), Year Ended Dec 31, 2023
This Amendment No. 1 to Form 10-K amends the Annual Report for the fiscal year ended December 31, 2023, originally filed on February 13, 2024. Incyte Corporation filed it solely to correct an administrative error in which an incorrect document was filed as Exhibit 97.1, the Incyte Corporation Policy for Recoupment of Erroneously Awarded Compensation. The corrected policy is attached as the new Exhibit 97.1. The filing states that no revisions are being made to the company's financial statements or to any other disclosure in the Original Form 10-K. It is an exhibit-only filing that contains no financial statements or financial information, and it does not update any other exhibits. It includes new Section 302 certifications from the principal executive officer and principal financial officer, with certain paragraphs omitted as permitted under Rule 13a-14 of the Exchange Act. Section 906 certifications are not included because the amendment contains no financial statements. The cover page of the Original Form 10-K reported an aggregate market value of Common Stock held by non-affiliates of approximately $11.7 billion as of June 30, 2023, and 224,526,128 shares outstanding as of February 6, 2024. Ernst & Young LLP, Philadelphia, Pennsylvania, is identified as the auditor. The company's 2024 Annual Meeting of Stockholders is to be held on June 12, 2024.
Feb 16, 2024
2023
Incyte Annual Report, Year Ended Dec 31, 2023
Incyte Corporation's Form 10-K for fiscal 2023 reports total revenues of $3.70 billion for the year ended December 31, 2023, up from $3.39 billion in 2022. Product revenues, net, were $3.17 billion, led by JAKAFI at $2.59 billion, while OPZELURA grew to $337.9 million from $128.7 million. Product royalty revenues were $523.4 million and milestone and contract revenues were $7.0 million, down from $165.0 million in 2022. Net income was $597.6 million, or $2.65 per diluted share, compared with $340.7 million, or $1.52 per diluted share, in 2022. The effective tax rate was 28.4%, versus 35.6% in the prior year. The company is heavily dependent on JAKAFI (ruxolitinib), which the filing says it expects to continue to contribute a significant percentage of total revenues. The filing also flags pending generic challenges to JAKAFI and OPZELURA, a U.S. ANDA challenge to OPZELURA, and a lawsuit against CMS over the OPZELURA line-extension treatment, for which about $59.5 million has been accrued. Cash, cash equivalents and marketable securities were $3.66 billion at year-end, against no outstanding borrowings under a $500.0 million revolving credit facility. Pipeline activity during the year included the FDA approval of ZYNYZ for Merkel cell carcinoma, a BLA submission for axatilimab in chronic GVHD, and the February 2024 purchase agreement with MorphoSys that gave Incyte exclusive global rights to tafasitamab. The company also disclosed a $1.4 billion Swiss income tax credit, which it fully reserved with a valuation allowance.
Feb 13, 2024
2022
Incyte Annual Report, Year Ended Dec 31, 2022
Incyte Corporation (Nasdaq: INCY) reported total revenues of $3.39 billion for fiscal 2022, up from $2.99 billion in 2021, and net income of $340.7 million, down from $948.6 million in 2021. The 2021 result included a $569.0 million income tax benefit from releasing the valuation allowance on most U.S. deferred tax assets. Product revenues, net, were $2.75 billion, led by JAKAFI at $2.41 billion, with OPZELURA cream growing to $128.7 million in its first full year of sales. Total product royalty revenues declined to $482.7 million, mainly from lower OLUMIANT royalties ($134.5 million versus $220.9 million) and currency effects on JAKAVI royalties. The company remains heavily dependent on JAKAFI, which the filing says it expects to continue contributing a significant percentage of total revenues over the next several years. Research and development expense rose to $1.59 billion and selling, general and administrative expense to $1.00 billion, driven by late-stage development and the build-out of the dermatology commercial organization. Cash, cash equivalents and marketable securities were $3.24 billion at December 31, 2022, with no borrowings under a $500.0 million revolving credit facility, and management stated its capital resources are adequate for the foreseeable future. The filing also discloses an accumulated deficit of $0.4 billion, a pending FDA review of once-daily ruxolitinib with a PDUFA target date of March 23, 2023, and risks from potential generic competition to JAKAFI, the pending Medicare drug price negotiation and related reforms under the Inflation Reduction Act, and an ongoing contract dispute with Novartis over $253.5 million of accrued royalties. The company also made several deals in 2022, including the acquisition of Villaris Therapeutics for an upfront payment of $70.3 million, which was expensed as research and development, and a licensing arrangement with CMS Aesthetics for ruxolitinib cream in Greater China and Southeast Asia. Incyte's two therapeutic areas are Hematology/Oncology and Inflammation and Autoimmunity.
Feb 7, 2023
2021
Incyte Annual Report, Year Ended Dec 31, 2021
Incyte Corporation reported total revenues of $2.99 billion for 2021, up from $2.67 billion in 2020, and net income of $948.6 million, compared with a net loss of $295.7 million in 2020. The results were helped by a $569.0 million income tax benefit from releasing the valuation allowance on most of its U.S. deferred tax assets. Product revenues, net, were $2.32 billion, led by JAKAFI at $2.13 billion, while product royalty revenues rose to $569.3 million, driven by JAKAVI, OLUMIANT and TABRECTA. Milestone and contract revenues fell to $95.0 million from $205.0 million. Research and development expense fell to $1.46 billion from $2.22 billion, mainly because 2020 included large upfront and milestone payments under collaboration agreements, including the MorphoSys agreement. Selling, general and administrative expense rose to $739.6 million from $516.9 million, reflecting the build-out of the dermatology commercial organization for OPZELURA, which was approved in September 2021. Cash, cash equivalents and marketable securities totaled $2.35 billion at year-end, and the company had an undrawn $500.0 million revolving credit facility. The filing also highlights regulatory and commercial risks. JAKAFI is the company's dominant product, and the filing notes a September 2021 FDA labeling update adding warnings for JAK inhibitors. In January 2022 the company withdrew the parsaclisib NDA, and FDA actions on baricitinib for atopic dermatitis remained uncertain. The company also disclosed an accumulated deficit of $0.8 billion and a Yverdon, Switzerland large molecule production facility expected to be operational in the second half of 2022.
Feb 8, 2022
2020
Incyte Annual Report, Year Ended Dec 31, 2020
Incyte Corporation reported a net loss of $295.7 million for 2020, compared with net income of $446.9 million in 2019, as total revenues rose to $2.67 billion from $2.16 billion. Product revenues, net, reached $2.07 billion, led by JAKAFI revenues of $1.94 billion, while product royalty revenues were $392.97 million and milestone and contract revenues were $205.0 million. The net loss reflected research and development expense of $2.22 billion, which included $976.1 million of upfront and milestone expenses under collaboration agreements, including $804.5 million of upfront consideration paid to MorphoSys. Cash, cash equivalents and marketable securities totaled $1.80 billion at December 31, 2020, down from $2.12 billion a year earlier, and operating cash flow was negative $124.6 million. The company remains heavily dependent on JAKAFI (ruxolitinib), which the filing says it expects will continue to contribute a significant percentage of total revenues over the next several years. Recent regulatory milestones include FDA approvals of PEMAZYRE in April 2020, TABRECTA in May 2020, and MONJUVI in July 2020, along with several EU and Japan approvals for OLUMIANT and TABRECTA. Pending items include an sNDA for ruxolitinib in steroid-refractory chronic GVHD, an NDA for ruxolitinib cream in atopic dermatitis, and a Biologics License Application for retifanlimab accepted for Priority Review in January 2021. The filing also reports an accumulated deficit of $1.7 billion, a Department of Justice civil investigative demand and a qui tam action concerning speaker and patient assistance programs for which no reserve has been recorded. The filing states that the Company's COVID-19 related effects had not been material to commercial operations as of the filing, although new patient starts for JAKAFI decreased during shelter-in-place measures. The RUXCOVID Phase III study did not prevent complications compared with standard of care alone, while baricitinib received an FDA Emergency Use Authorization in November 2020 for use with remdesivir in hospitalized COVID-19 patients.
Feb 9, 2021
2019
Incyte Annual Report, Year Ended Dec 31, 2019
Incyte Corporation reported total revenues of $2.16 billion for 2019, up from $1.88 billion in 2018, and net income of $446.9 million ($2.05 per diluted share), compared with $109.5 million in 2018. Growth was driven mainly by JAKAFI (ruxolitinib) product revenues, net, of $1.68 billion versus $1.39 billion in 2018, with the increase comprised of a volume increase of $204.5 million and a price increase of $93.5 million. Product royalty revenues from JAKAVI and OLUMIANT rose to $306.3 million, while milestone and contract revenues fell to $77.5 million from $180.0 million. Cash, cash equivalents and marketable securities stood at $2.12 billion at December 31, 2019, and operating cash flow was $710.7 million. The company still carried an accumulated deficit of $1.4 billion. The filing highlights a pipeline with several regulatory milestones. The FDA accepted the NDA for pemigatinib in cholangiocarcinoma for Priority Review with a PDUFA target action date of May 30, 2020, and the NDA for capmatinib submitted by Novartis was accepted for Priority Review. Pipeline setbacks included the Phase III GRAVITAS-301 trial of itacitinib in steroid-naive acute GVHD, which did not meet its primary endpoint, and the decision to end recruitment into the RESET trial in essential thrombocythemia. Positive readouts included TRuE-AD2 for ruxolitinib cream in atopic dermatitis and several BREEZE-AD baricitinib trials. Investors should note the company's dependence on JAKAFI, which the filing describes as its first and currently only product approved in the United States, and the January 2020 MorphoSys agreement, which includes a $750.0 million upfront payment and a $150.0 million purchase of MorphoSys ADSs. The filing also discloses a qui tam complaint tied to a DOJ civil investigative demand about speaker and patient assistance programs, which the company says it is defending vigorously, with no reserve recorded.
Feb 13, 2020
2018
Incyte Annual Report, Year Ended Dec 31, 2018
Incyte Corporation (Nasdaq: INCY) reported net income of $109.5 million for 2018, compared with a net loss of $313.1 million in 2017, on total revenues of $1.88 billion (2017: $1.54 billion). The result was driven by JAKAFI product revenues, net, of $1.39 billion (2017: $1.13 billion), with ICLUSIG revenues of $79.9 million, and product royalty revenues of $234.8 million from JAKAVI and OLUMIANT sales outside the United States. Research and development expense declined to $1.20 billion from $1.33 billion, mainly because 2017 included $359.1 million of upfront and milestone charges for new collaborations. Milestone and contract revenues were $180.0 million, largely from Lilly and Novartis. The company remains dependent on JAKAFI (ruxolitinib), which is approved in the U.S. for intermediate or high risk myelofibrosis and for polycythemia vera. Its pipeline includes ruxolitinib in steroid-refractory graft-versus-host disease (sNDA accepted for Priority Review, review period extended by three months), pemigatinib, itacitinib, and parsaclisib. Partnered programs include baricitinib (OLUMIANT), licensed to Eli Lilly, and capmatinib, licensed to Novartis. At December 31, 2018, cash, cash equivalents and marketable securities totaled $1.44 billion, and the accumulated deficit was $1.9 billion. The filing also discloses risks including reliance on a limited number of specialty pharmacies and wholesalers, generic competition to JAKAFI (including an ANDA challenge), reimbursement pressure, and a December 2018 civil investigative demand from the U.S. Department of Justice concerning speaker programs and patient assistance programs. The company states it has not recorded a reserve for this matter.
Feb 14, 2019
2017
Incyte Annual Report, Year Ended Dec 31, 2017
Incyte Corporation reported a net loss of $313.1 million for 2017, compared with net income of $104.2 million in 2016, as total revenues rose to $1.54 billion from $1.11 billion. Product revenues, net, were $1.20 billion, driven by JAKAFI ($1,133.4 million) and ICLUSIG ($66.9 million, acquired June 2016). Product royalty revenues were $160.8 million and milestone and contract revenues were $175.0 million. The loss was driven largely by research and development expense of $1.33 billion, which rose from $581.9 million, including $359.1 million in charges for new and amended collaboration agreements with Calithera, MacroGenics, Merus and Agenus. The balance sheet strengthened over the year. Cash, cash equivalents and marketable securities totaled $1.17 billion at December 31, 2017, up from $808.5 million, supported by a September 2017 public offering that netted approximately $649.4 million. Stockholders' equity rose to $1.63 billion from $419.5 million, and the accumulated deficit stood at $2.0 billion. Convertible senior notes fell to $24.0 million from $651.5 million after noteholders exchanged most of the 2018 and 2020 notes for common stock. The filing highlights a heavy dependence on JAKAFI (ruxolitinib) for both product sales and the company's royalty base. Its pipeline is broad, with 17 candidates against 14 molecular targets as of February 15, 2018, including epacadostat in multiple Phase III trials. Baricitinib (OLUMIANT), partnered with Eli Lilly, received a complete response letter from the FDA in April 2017 and was resubmitted in December 2017 under a new six-month review cycle. Management reports that the company expects its cash, cash flow and marketable securities to be adequate for at least the next twelve months.
Feb 15, 2018
2016-A2
Incyte Annual Report (Amendment), Year Ended Dec 31, 2016
Incyte Corporation's Amendment No. 2 to its Form 10-K for the fiscal year ended December 31, 2016, dated June 30, 2017, amends the annual report solely to revise certain exhibits and provide a corrected, updated exhibit list. The filing states that it was made in connection with a request for confidential treatment of portions of Exhibits 10.20.4, 10.26 and 10.27 (renumbered 10.21.4, 10.27 and 10.28 in this amendment). It does not contain financial statements; the filing refers readers to the Index to Consolidated Financial Statements in the Original Form 10-K, filed February 14, 2017, and states that the Amended Form 10-K has not been updated for events after that date except as set forth in this amendment. The cover page reports that the aggregate market value of Common Stock held by non-affiliates was approximately $13.1 billion, based on the NASDAQ Global Select Market closing price on June 30, 2016. As of February 7, 2017, there were 189,408,381 shares of Common Stock, $.001 par value, outstanding. The filing identifies the company as a large accelerated filer and not a shell company. The amended exhibit list identifies several newer agreements filed with this amendment, including a Fourth Amendment, effective December 13, 2016, to the License, Development and Commercialization Agreement with Eli Lilly and Company, and a Collaboration and License Agreement and a Share Subscription Agreement, both dated December 20, 2016, with Merus N.V. Certain of these exhibits are subject to confidential treatment requests. Part III information is incorporated by reference from the proxy statement for the 2017 Annual Meeting of Stockholders, scheduled for May 26, 2017.
Jun 30, 2017
2016-A
Incyte Annual Report (Amendment), Year Ended Dec 31, 2016
This filing is Amendment-stage exhibit material for Incyte Corporation's Annual Report on Form 10-K for the year ended December 31, 2016, dated March 17, 2017. It contains the Item 15 Exhibits listing rather than full financial statements; the consolidated financial statements are incorporated by reference to the Original Form 10-K. The filing states that all financial statement schedules are omitted as not applicable or not required, or because the information appears elsewhere in the Consolidated Financial Statements and Notes. The exhibit index shows the principal contractual and governance documents referenced in the report. Among the most significant new agreements listed are a Fourth Amendment, effective December 13, 2016, to the License, Development and Commercialization Agreement with Eli Lilly and Company; a Collaboration and License Agreement with Merus N.V. dated December 20, 2016; and a Share Subscription Agreement with Merus N.V. of the same date. Several agreements, including the Eli Lilly, Merus, Novartis, Pfizer, Agenus, Jiangsu Hengrui and ARIAD agreements, are marked as subject to confidential treatment requests for certain portions. The filing also lists the 2010 Stock Incentive Plan, the 1997 Employee Stock Purchase Plan, executive employment agreements, indentures dated November 14, 2013 with U.S. Bank National Association, and a lease with Augustine Land I, L.P. Certifications dated February 14, 2017 and March 17, 2017 are listed, along with XBRL exhibits, with those marked with an asterisk filed with the Original Form 10-K and those marked with two asterisks filed herewith.
Mar 17, 2017
2016
Incyte Annual Report, Year Ended Dec 31, 2016
Incyte Corporation's 10-K for fiscal 2016 reports total revenues of $1.11 billion, up from $753.8 million in 2015, driven primarily by JAKAFI product revenues, net of $852.8 million, which the filing describes as the company's first FDA-approved product and the only product approved in the U.S. for myelofibrosis and polycythemia vera. The company acquired the European operations of ARIAD Pharmaceuticals in June 2016 for an upfront payment of $147.5 million, adding ICLUSIG product revenues of $29.6 million for the post-acquisition period. Net income was $104.2 million, or $0.54 per diluted share, compared with $6.5 million in 2015, and the company reported an accumulated deficit of $1.7 billion as of December 31, 2016. The balance sheet shows cash, cash equivalents and marketable securities of $808.5 million against total convertible senior notes of $749.8 million in principal. Research and development expense rose to $581.9 million and selling, general and administrative expense to $303.3 million. The filing also notes that the Company has a pipeline of 17 candidates against 13 molecular targets as of February 14, 2017, with epacadostat in Phase III trials, and that the European Commission approved partner Eli Lilly's baricitinib in February 2017, which triggers a $65.0 million milestone for Incyte. Key risks highlighted in the filing include dependence on JAKAFI for a significant share of revenue, a generic ANDA challenge to JAKAFI patents, reliance on third-party manufacturers, the possibility that the ARIAD buy-back option could be exercised, and the company's substantial leverage and need for additional capital. The company has never paid dividends and expects to continue to rely on its cash position to fund operations for at least the next twelve months.
Feb 14, 2017
2015-A
Incyte Annual Report (Amendment), Year Ended Dec 31, 2015
This Form 10-K/A amendment to Incyte Corporation's annual report adds the audited consolidated financial statements of Agenus Inc. as Exhibit 99.1, provided under Rule 3-09. The amendment's exhibit list also covers Incyte's agreements and certifications, including several filed with the Original Form 10-K. Incyte's own financial statements are in Item 8 of that Original Form 10-K. For investors, the main content is Agenus's financial condition, which the filing shows as a company with a large accumulated deficit that depends on partnerships and financing. Agenus reported 2015 total revenues of $24.8 million, up from $7.0 million in 2014, with 95% of 2015 revenue earned from one collaboration partner. Its net loss widened to $87.9 million in 2015 from $42.5 million in 2014, and its accumulated deficit reached $779.2 million at December 31, 2015. Agenus stated that its cash, cash equivalents and short-term investments of $171.7 million at year-end 2015 would be sufficient to meet liquidity requirements through the first half of 2017. The filing also documents Incyte's ties to Agenus. In February 2015, Incyte bought approximately 7.76 million Agenus shares for $35.0 million under a Stock Purchase Agreement, and the two companies entered a January 2015 collaboration in which Incyte paid $25.0 million in non-creditable, nonrefundable upfront payments. Agenus also issued $100.0 million of limited recourse notes in September 2015 that accrue interest at 13.5%, secured by royalties on GSK vaccine sales.
Mar 15, 2016
2015
Incyte Annual Report, Year Ended Dec 31, 2015
Incyte Corporation's 10-K for fiscal year 2015 shows the company reaching its first full year of net income, with net income of $6.5 million on total revenues of $753.8 million, compared with a net loss of $48.5 million on $511.5 million of revenues in 2014. Growth was driven by JAKAFI (ruxolitinib), which generated product revenues, net of $601.0 million in 2015 versus $357.6 million in 2014, with the filing attributing the increase to a volume increase of $187.5 million and a price increase of $55.9 million. Product royalty revenues from Novartis's sales of JAKAVI outside the United States rose to $74.8 million, and contract revenues were $77.9 million, down from $104.8 million, mainly because of lower Novartis milestone recognition ($65.0 million in 2015 versus $92.0 million in 2014). The company remains dependent on JAKAFI, which is approved in the U.S. for intermediate or high-risk myelofibrosis and uncontrolled polycythemia vera. The filing also highlights significant pipeline setbacks and balance sheet considerations. In January and February 2016, Incyte decided to discontinue several ruxolitinib solid tumor studies, including the JANUS 1 and JANUS 2 pancreatic cancer studies, after interim analyses did not show sufficient efficacy, and it also discontinued the INCB39110 pancreatic cancer study. Partner Eli Lilly submitted an NDA and MAA for baricitinib in rheumatoid arthritis in January 2016, triggering $35.0 million and $20.0 million milestone payments to Incyte. At December 31, 2015, the company reported cash, cash equivalents and marketable securities of $707.8 million, total debt principal of $749.8 million, and an accumulated deficit of $1.8 billion. Stockholders' equity was $171.2 million, up from a deficit of $81.6 million a year earlier. Key risks for investors include reliance on JAKAFI for substantially all revenues, exposure to generic competition after the Hatch-Waxman four-year period expired in November 2015, reimbursement pressures, single-source manufacturing for JAKAFI, and the conversion features of the 2018 and 2020 convertible senior notes, which became convertible on January 1, 2016 through at least March 31, 2016.
Feb 12, 2016
2014
Incyte Annual Report, Year Ended Dec 31, 2014
Incyte Corporation (INCY) reported total revenues of $511.5 million for 2014, up from $354.9 million in 2013, driven primarily by JAKAFI product revenues of $357.6 million (compared with $235.4 million in 2013). Product royalty revenues from Novartis's sales of JAKAVI outside the United States were $49.0 million, and contract revenues were $104.8 million, including $92.0 million of milestone payments from Novartis. The company's net loss narrowed to $48.5 million, or $0.29 per share, from $83.1 million, or $0.56 per share, in 2013. Research and development expenses rose to $347.5 million and selling, general and administrative expenses to $165.8 million, reflecting pipeline investment and commercial build-out. JAKAFI (ruxolitinib) was approved by the FDA in November 2011 for intermediate or high-risk myelofibrosis and in December 2014 for polycythemia vera patients who had an inadequate response to or were intolerant of hydroxyurea. The company retains U.S. rights to JAKAFI and has a pipeline spanning oncology and inflammation, including a Phase III pancreatic cancer program under a Special Protocol Assessment, baricitinib (partnered with Eli Lilly) in Phase III for rheumatoid arthritis, and epacadostat, an IDO1 inhibitor being tested in combination with checkpoint inhibitors. In January 2015, Incyte entered an agreement with Agenus Inc. and agreed to purchase about 7.76 million Agenus shares for $35.0 million. At year-end 2014, Incyte had $600.3 million in cash, cash equivalents and marketable securities, $840.9 million of principal on convertible senior notes, and a stockholders' deficit of $81.6 million. The accumulated deficit was $1.8 billion. Management stated it believes existing cash will be adequate to satisfy capital needs for at least the next twelve months.
Feb 17, 2015
2013
Incyte Annual Report, Year Ended Dec 31, 2013
Incyte Corporation's 10-K for fiscal 2013 reports that its lead product JAKAFI (ruxolitinib) was approved by the FDA in November 2011 for intermediate or high-risk myelofibrosis and generated product revenues, net, of $235.4 million in 2013, up from $136.0 million in 2012. Total revenues were $354.9 million in 2013 versus $297.1 million in 2012, supported by $28.3 million of product royalty revenues from Novartis sales of JAKAVI outside the United States and $91.0 million of contract revenues. The company still reported a net loss of $83.1 million, or $0.56 per share, compared with a net loss of $44.3 million in 2012, and an accumulated deficit of $1.7 billion as of December 31, 2013. The balance sheet strengthened during 2013. Cash, cash equivalents and marketable securities rose to $509.0 million from $228.4 million, driven by net proceeds of $728.7 million from the issuance of 0.375% convertible senior notes due 2018 and 1.25% convertible senior notes due 2020, partly offset by a $500.0 million repurchase of 4.75% convertible senior notes due 2015. Total debt principal was $846.6 million, and stockholders' deficit was $193.1 million. Management believes existing cash will be adequate for at least the next twelve months. The pipeline spans oncology and inflammation. Ruxolitinib is in a Phase III trial for polycythemia vera, with supplemental NDA results expected in mid-2014 under a special protocol assessment, and a Phase II pancreatic cancer trial showed a survival benefit in a pre-specified subgroup, with Phase III trials expected to begin in the first half of 2014. Baricitinib, licensed to Eli Lilly, is in Phase III for rheumatoid arthritis. The filing also discloses two securities class action lawsuits filed in March and April 2013 that the company intends to defend vigorously, and it names Hervé Hoppenot as President and Chief Executive Officer effective January 13, 2014.
Feb 21, 2014
2012
Incyte Annual Report, Year Ended Dec 31, 2012
Incyte Corporation's annual report for fiscal 2012 shows the company's first year of commercial sales of JAKAFI (ruxolitinib), approved by the FDA in November 2011 for intermediate or high-risk myelofibrosis. Total revenues rose to $297.1 million in 2012 from $94.5 million in 2011, driven by product revenues, net, of $136.0 million (up from $2.0 million) and contract revenues of $156.9 million. Net loss narrowed to $44.3 million, or $0.34 per share, from $186.5 million, or $1.49 per share, in 2011. Income from operations was $1.1 million in 2012 compared with a loss of $143.2 million in 2011. The company remains heavily dependent on JAKAFI and its pipeline. Its accumulated deficit was $1.7 billion at December 31, 2012, and it had cash, cash equivalents and marketable securities of $228.4 million, against $410.0 million of total consolidated debt and a stockholders' deficit of $175.0 million. Management believes existing cash will be adequate for at least the next twelve months. Key pipeline items include a Phase III trial of ruxolitinib in polycythemia vera, a Phase III program of baricitinib in rheumatoid arthritis partnered with Eli Lilly, and multiple Phase II programs. Novartis holds ex-U.S. rights to ruxolitinib (sold as JAKAVI), and the filing notes that all of the company's 2012 revenues came from JAKAFI product sales, JAKAVI royalties, and collaborations and licensing. The filing also flags material risks: reliance on single third-party manufacturers and suppliers for JAKAFI, dependence on reimbursement from payors, competition from better-resourced companies, and the possibility of further financing needs. Management concluded that internal control over financial reporting was effective as of December 31, 2012, and Ernst & Young LLP issued an unqualified audit opinion dated February 21, 2013.
Feb 21, 2013
2011
Incyte Annual Report, Year Ended Dec 31, 2011
Incyte Corporation's 10-K for fiscal 2011 reports that its first commercial product, JAKAFI (ruxolitinib), received FDA approval on November 16, 2011 for intermediate or high-risk myelofibrosis and launched in the United States that month, with a 60-person specialty sales force and a wholesale acquisition cost of $7,000 for a 30-day supply. Product revenue was only $2.0 million in 2011, while total revenues were $94.5 million, down from $169.9 million in 2010, as collaboration milestone recognition declined. Net loss widened to $186.5 million, or $1.49 per share, from $31.8 million, $0.26 per share, in 2010, and research and development expense rose to $178.7 million. The company had $277.6 million in cash, cash equivalents and marketable securities at year-end 2011, against $420.0 million of total consolidated debt, including $400.0 million of 4.75% convertible senior notes due 2015, and a stockholders' deficit of $227.1 million. Management states that available capital is adequate for at least the next twelve months, though it expects to need additional financing and has relied on collaborations with Novartis, Eli Lilly and Pfizer. The investment case rests heavily on JAKAFI's commercial uptake, reimbursement and manufacturing, since the company relies on single third-party manufacturers and Chinese-sourced raw materials for the drug. The pipeline includes a global Phase III trial of ruxolitinib in polycythemia vera (SPA agreement in place, about 200 patients), a Phase II pancreatic cancer trial, and LY3009104 in Phase IIb for rheumatoid arthritis and psoriasis with results expected in 2012 for the RA trial. Incyte has licensed rights to several compounds to partners, so future revenue depends on milestones and royalties, and the company states it has never paid dividends. The filing describes an operating-loss-driven company in transition from development to commercialization, with a limited history of product sales and significant dependence on JAKAFI's success.
Feb 22, 2012
2010
Incyte Annual Report, Year Ended Dec 31, 2010
Incyte Corporation's annual report for fiscal 2010 shows a company still in drug development that posted a much smaller net loss than prior years, driven mainly by collaboration revenue. Total revenues were $169.9 million in 2010 versus $9.3 million in 2009, with contract revenues of $169.0 million, largely from the Novartis and Lilly agreements. The company reported income from operations of $14.0 million and a net loss of $31.8 million, or $0.26 per share, compared with a net loss of $211.9 million in 2009. Management states it has not yet had any drug product generate revenue, and the filing reports an accumulated deficit of $1.4 billion and a stockholders' deficit of $88.6 million at December 31, 2010. The pipeline is centered on ruxolitinib, a JAK1/JAK2 inhibitor in Phase III development for myelofibrosis and polycythemia vera. The company says a New Drug Application for myelofibrosis is planned, and it is building U.S. commercial infrastructure, including anticipated hiring of about 60 sales representatives in the second half of 2011. The filing notes that the COMFORT-I Phase III trial in myelofibrosis reported a 42% response rate versus less than 1% for placebo, and that the FDA granted a Special Protocol Assessment. Other programs include LY3009104 (licensed to Eli Lilly), c-MET, sheddase, and IDO inhibitors. Investors should weigh the reliance on collaboration payments, which the filing says drove 2010 revenue, against a debt load of $420.0 million in principal, including $400.0 million of 4.75% convertible senior notes due 2015. Cash, cash equivalents and marketable securities were $424.2 million at year-end, and management believes this is adequate for at least the next twelve months. The company also states it expects to continue incurring losses in 2011 and beyond.
Feb 23, 2011
2009
Incyte Annual Report, Year Ended Dec 31, 2009
Incyte Corporation's 10-K for fiscal 2009 describes a drug discovery and development company focused on oncology and inflammation, with no approved products and no drug revenues to date. Total revenues were $9.3 million in 2009 versus $3.9 million in 2008, while net loss widened to $211.9 million ($2.06 per share) from $178.9 million ($1.99 per share). Research and development expense was $119.4 million and selling, general and administrative expense rose to $27.6 million, reflecting initial commercialization preparations for INCB18424 in myelofibrosis. The company's financial position strengthened considerably during 2009. Cash, cash equivalents and marketable securities totaled $473.9 million at year-end, up from $217.8 million, supported by a $132.3 million net stock offering, $387.4 million net proceeds from 4.75% convertible senior notes due 2015, and a $150 million Novartis upfront payment. Stockholders' deficit narrowed to $102.4 million, and total debt principal was $594.6 million. In February 2010 the company redeemed its remaining 3.5% convertible notes due 2011 for $158.6 million in cash. The pipeline's lead asset, INCB18424, is in Phase III for myelofibrosis under a Special Protocol Assessment from the FDA, with a second Phase III trial in Europe under the Novartis collaboration. The company also licensed rights to its JAK inhibitor INCB28050 to Eli Lilly and its c-MET inhibitor to Novartis, with upfront payments of $90 million (Lilly) and $150 million (Novartis). The filing notes continued losses expected in 2010 and beyond, dependence on collaborators, and the need for additional capital.
Mar 5, 2010
2008
Incyte Annual Report, Year Ended Dec 31, 2008
Incyte Corporation (INCY), a drug discovery and development company focused on small molecule drugs for serious unmet medical needs in oncology, inflammation and diabetes, reported a net loss of $178.9 million for 2008, compared with $86.9 million in 2007. Total revenues were $3.9 million in 2008, down from $34.4 million in 2007, as contract revenues fell to $0.7 million from $29.8 million after the Pfizer upfront fee amortization was completed in early 2008. Research and development expenses rose to $146.4 million from $104.9 million, driven by clinical research and outside services, which increased to $84.1 million from $47.9 million. As of December 31, 2008, cash, cash equivalents and marketable securities totaled $217.8 million, against a stockholders' deficit of $220.8 million and total debt principal of $421.8 million. The company's lead program is the oral JAK inhibitor INCB18424 for myelofibrosis, for which it plans a Phase III registration trial in the first half of 2009 following an FDA Special Protocol Assessment request. To conserve cash in 2009, management said it will focus on clinical programs with a greater likelihood of near-term value. It discontinued INCB18424 development in rheumatoid arthritis, prostate cancer and multiple myeloma, and deprioritized the HM74a, CCR2 and CCR5 programs. The c-MET and IDO oncology programs will not enter clinical trials in 2009 unless additional funding is secured. Management stated that cash will be adequate for at least the next twelve months, but it expects continued losses and will likely need to raise additional capital, which could be dilutive to stockholders. The filing also notes that Incyte's revenue base is largely confined to its Pfizer collaboration and its legacy genomic information licensing, which are declining. Its convertible notes, including $151.8 million of 3.5% senior notes and $250.0 million of 3.5% subordinated notes due 2011, create refinancing pressure. The company reported 212 employees as of December 31, 2008 and no material legal proceedings.
Mar 3, 2009
2007
Incyte Annual Report, Year Ended Dec 31, 2007
Incyte Corporation (Nasdaq: INCY) is a drug discovery and development company focused on small molecule drugs for serious unmet medical needs, with programs in oncology, inflammation, diabetes and HIV. The company reported a net loss of $86.9 million for 2007, compared with $74.2 million in 2006, and total revenues of $34.4 million, up from $27.6 million. Research and development expenses rose to $104.9 million from $87.6 million. Contract revenues of $29.8 million were derived primarily from the collaborative research and license agreement with Pfizer for CCR2 antagonists. As of December 31, 2007, cash, cash equivalents and marketable securities totaled $257.3 million, against $421.8 million of aggregate principal amount of total consolidated debt and a stockholders' deficit of $159.5 million. Operating cash outflow was $92.7 million in 2007. The pipeline is led by INCB18424, an oral and topical JAK inhibitor in Phase IIa trials across myelofibrosis, rheumatoid arthritis, psoriasis, refractory prostate cancer and multiple myeloma, with a follow-on compound, INCB28050, expected to enter clinical trials in 2008. Other programs include 11ßHSD1 inhibitors for type 2 diabetes, an HM74a agonist in Phase I, CCR5 antagonists for HIV (INCB9471 in Phase II), a sheddase inhibitor for solid tumors (INCB7839 in Phase II), and a CCR2 antagonist (INCB8696) for multiple sclerosis in Phase I. The company states that it has no drug products that have generated revenues and that it expects to continue incurring losses in 2008 and future periods. Management believes its cash and marketable securities will be adequate for at least the next twelve months. The filing lists several risks central to the investment case, including early-stage clinical development, reliance on Pfizer for CCR2 antagonist development, dependence on third-party manufacturers and CROs, the need for additional capital, and the company's convertible debt obligations. The filing reports that the company is not currently a party to any material legal proceedings.
Mar 6, 2008
2006
Incyte Annual Report, Year Ended Dec 31, 2006
Incyte Corporation's 10-K for fiscal 2006 describes a drug discovery and development company focused on small molecule drugs for serious unmet medical needs, with programs in HIV, diabetes, oncology and inflammation. The company reported 2006 total revenues of $27.6 million, consisting of $24.2 million of contract revenues from its January 2006 collaboration with Pfizer and $3.4 million of license and royalty revenues, against total costs and expenses of $104.5 million. Research and development expense was $87.6 million, and the net loss narrowed to $74.2 million, or $0.89 per share, from $103.0 million in 2005. The company expects to keep incurring losses and states that none of its drug candidates has been submitted for regulatory approval, and it had no drug products generating revenue to date. The balance sheet shows cash, cash equivalents and marketable securities of $329.8 million at December 31, 2006, against an accumulated deficit of $913.5 million and a stockholders' deficit of $84.9 million. Total debt principal was $411.8 million, including $151.8 million of 3½% convertible senior notes due 2011 issued in September 2006, $250.0 million of 3½% convertible subordinated notes due 2011, and a $10.0 million non-interest-bearing Pfizer note due 2013. Management states that cash and marketable securities should be adequate for at least the next twelve months, and net cash used in operating activities improved to $50.4 million in 2006 from $101.9 million in 2005, largely due to the $40.0 million Pfizer upfront payment. Pfizer holds worldwide development and commercialization rights to the CCR2 antagonist portfolio, excluding multiple sclerosis and lupus nephritis, and Incyte is eligible for up to $743.0 million in future development and milestone payments. The company discontinued its DFC HIV program in April 2006, and its most advanced candidates are in Phase I and Phase IIa trials.
Feb 28, 2007
2005
Incyte Annual Report, Year Ended Dec 31, 2005
Incyte Corporation's 10-K for fiscal 2005 describes a company that has shifted from genomic information products to focusing solely on small-molecule drug discovery and development in three core areas: HIV, inflammation and cancer, with a diabetes program also underway. Revenues fell to $7.8 million in 2005 from $14.1 million in 2004 and $41.2 million in 2003, as information products were discontinued. Net loss was $103.0 million in 2005 versus $164.8 million in 2004, and the accumulated deficit reached $839.3 million. Cash, cash equivalents and marketable securities declined to $345.0 million from $469.8 million, and stockholders' equity turned to a deficit of $19.4 million, with total consolidated debt of $341.9 million. The company's most important near-term catalysts are its lead HIV candidate, dexelvucitabine (DFC), and its CCR2 antagonist program. The FDA asked Incyte to run a second Phase IIb trial (Study 204) before Phase III for DFC, which began in February 2006. In January 2006, Pfizer became effective as the worldwide partner for CCR2 antagonists (excluding multiple sclerosis and one undisclosed indication), with Incyte receiving a $40 million upfront payment and eligibility for up to $743 million in additional development and milestone payments. Pfizer also purchased a $10 million convertible note in February 2006. The filing states the company expects continued losses in 2006 and beyond, does not expect product revenues for several years, and believes existing cash will be adequate for at least the next twelve months. It also discloses an ongoing patent suit by Invitrogen Corporation for which the company cannot reasonably estimate a possible loss, and notes that adoption of SFAS 123R is expected to add $5.0 million to $6.0 million of research and development expense and $2.0 million to $3.0 million of selling, general and administrative expense in 2006.
Mar 3, 2006
2004
Incyte Annual Report, Year Ended Dec 31, 2004
Incyte Corporation's 10-K for fiscal 2004 describes a company focused on discovering and developing novel small molecule drugs for HIV, inflammatory disorders, cancer and diabetes, after shifting away from its genomic information products business. Its lead candidate, Reverset, is in Phase IIb trials for HIV, with top-line interim results from about 140 patients suggesting sustained antiviral activity, though a higher than anticipated incidence of asymptomatic hyperlipasemia was observed in patients also receiving didanosine. The CCR2 receptor antagonist program completed a Phase I trial, and the sheddase inhibitor IND was filed in December 2004 with Phase I scheduled for March 2005. Financially, the company reported 2004 revenues of $14.1 million, down from $41.2 million in 2003, and a net loss of $164.8 million, or $2.21 per share. Research and development expenses were $88.3 million and other expenses, mostly restructuring and impairment charges, were $54.2 million. Cash, cash equivalents and marketable securities rose to $469.8 million at year end, supported by a $250 million 3 1/2% convertible note issuance and an $83.3 million net common stock offering. Stockholders' equity fell to $78.5 million against $378.8 million of convertible subordinated debt, and the company stated that its existing resources should be adequate for at least the next twelve months. The filing highlights ongoing risks, including the company's history of losses (an accumulated deficit of $736.3 million), its expectation of continued losses, its need for additional capital, its reliance on collaborators and contract research organizations, and the Invitrogen patent litigation, whose outcome cannot be reasonably estimated. The Iconix arbitration was settled in January 2005 with no material impact.
Mar 11, 2005
2003
Incyte Annual Report, Year Ended Dec 31, 2003
Incyte Corporation (formerly Incyte Genomics, Inc.) reported a net loss of $166.5 million for fiscal 2003, up from $136.9 million in 2002, or $2.33 per share. Revenues fell to $47.1 million from $101.6 million, as the company's genomic information products business continued to decline. Cash, cash equivalents and marketable securities totaled $293.8 million at December 31, 2003, down from $429.0 million a year earlier, and the accumulated deficit reached $571.5 million. The company is pivoting to small-molecule drug discovery and development, focusing on HIV, inflammation, cancer and diabetes. Its lead candidate, Reverset, is in Phase II trials for HIV, where a 10-day trial showed viral load reductions of 1.67 to 1.77 log10 across three doses. A CCR2 receptor antagonist program is expected to enter clinical trials in the first half of 2004. In February 2004, the company announced the closure of its Palo Alto headquarters and a restructuring expected to cost up to $47 million in 2004 and reduce annual expenses by up to $50 million. The company strengthened its balance sheet after year-end by issuing $200 million of 3.5% convertible subordinated notes due 2011 in February 2004, with an additional $50 million issued in March 2004. Investors should weigh these financing actions against ongoing losses, the early stage of the pipeline, and an pending arbitration with Iconix Pharmaceuticals over $28.25 million in alleged payments.
Mar 15, 2004
2002
Incyte Annual Report, Year Ended Dec 31, 2002
Incyte Corporation (formerly Incyte Genomics, Inc., renamed March 15, 2003) reported a net loss of $136.9 million for fiscal 2002 on revenues of $101.6 million, down from $219.3 million in 2001. The company is shifting from its genomic information business toward therapeutic drug discovery. Management expects revenues in 2003 to be lower than 2002 as customers cut spending on genomic information and focus on late-stage research. Revenue from information products (database access and IP licensing) was 96% of 2002 total net revenues, versus 79% in 2001. The company took $37.3 million in restructuring and other charges in 2002, including a $33.9 million charge tied to a November 2002 plan to cut about 37% of its workforce and consolidate Palo Alto facilities. Management expects this program to reduce annual expenses by over $80.0 million beginning in 2003 compared with 2002, while stating that therapeutic discovery spending will continue to rise. The company completed its acquisition of Maxia Pharmaceuticals in February 2003, which adds a preclinical diabetes program and carries up to $14.0 million in contingent earn-out payments. Management expects to record an in-process R&D or other charge in the first quarter of 2003. Cash, cash equivalents and marketable securities totaled $429.0 million at year-end 2002, against $172.0 million of convertible subordinated notes and an accumulated deficit of $405.0 million. Management believes existing resources are adequate for at least the next twelve months. The company also faces ongoing patent litigation with Invitrogen, which management says could result in substantial costs.
Mar 28, 2003
2001
Incyte Annual Report, Year Ended Dec 31, 2001
Incyte Genomics, Inc. reported a 2001 net loss of $183.2 million, or $2.77 per share, on revenues of $219.3 million, compared with a net loss of $29.7 million on revenues of $194.2 million in 2000. The loss was driven largely by a fourth-quarter 2001 restructuring and long-lived asset charge of $130.4 million, which the company recorded after changing its strategic focus to its therapeutic discovery and development programs and its information products. Of that charge, $68.7 million was goodwill and intangibles impairment, $55.6 million was non-recurring restructuring, and $6.1 million was impairment of a long-lived asset. Research and development expenses rose to $213.3 million from $192.6 million, and the company stated it expects to incur losses in 2002. The company held $507.9 million in cash, cash equivalents and marketable securities at December 31, 2001, down from $582.2 million a year earlier, and had $179.2 million of 5.5% convertible subordinated notes due 2007 outstanding. For 2002, Incyte expects revenues of $130.0 million to $150.0 million and total costs and expenses of $210 million to $220 million, and it expects cash and marketable securities of $400 million to $420 million at December 31, 2002, excluding strategic investments. Management states that existing resources are adequate for at least the next twelve months. The filing also highlights significant legal exposure. The company settled patent litigation with Affymetrix in December 2001 on a royalty-bearing license basis, but Invitrogen Corporation filed an infringement suit against Incyte in October 2001, and the company has filed its own counter-suit; management states it cannot reasonably estimate the possible range of loss from the Invitrogen suit. The company also reported 585 employees at December 31, 2001, after a workforce reduction of approximately 400 employees.
Apr 1, 2002
2000-A
Incyte Annual Report (Amendment), Year Ended Dec 31, 2000
This filing is Part III, Item 13 (Certain Relationships and Related Transactions) of Incyte Genomics, Inc.'s annual report, which the filing identifies as relating to a related-party arrangement with Genomic Health, Inc. In March 2001, the Company entered into a LifeSeq Collaboration Agreement, Patent License Agreement, Collaboration and Technology Transfer Agreement, and Proteome BioKnowledge Library License Agreement with Genomic Health. Under these agreements, Genomic Health obtained access to the Company's LifeSeq Gold database and BioKnowledge Library and received licenses to certain of the Company's intellectual property. The filing states that amounts Genomic Health will pay are similar to those paid by unrelated third-party customers, and the Company received rights to certain intellectual property Genomic Health may develop in the future. At the same time, the Company bought Series C Preferred Stock of Genomic Health for $5.0 million. Together with Series A Preferred Stock bought in November 2000 for $1.0 million, the Company owns approximately 10.9% of Genomic Health's outstanding capital stock. The Company has also agreed, under certain circumstances and if Genomic Health elects, to purchase $5.0 million of shares in a future Genomic Health offering. The filing discloses that Randal W. Scott, Chairman of the Company's Board, is Chairman, President and Chief Executive Officer of Genomic Health and owns more than 10% of its capital stock. Persons and entities associated with Four Partners, a significant stockholder of the Company, own approximately 12.7% of Genomic Health's outstanding capital stock. The filing also includes an exhibit index listing corporate governance documents, material agreements, and compensatory plans.
May 9, 2001
2000
Incyte Annual Report, Year Ended Dec 31, 2000
Incyte Genomics, Inc. (now Incyte Corporation) reported a net loss of $29.7 million for 2000, compared with a net loss of $26.8 million in 1999 and net income of $3.5 million in 1998. Revenues rose to $194.2 million in 2000 from $157.0 million in 1999, driven mainly by new database agreements, the Pfizer partner program, the isSNP product and custom genomics services. Research and development expense increased to $192.6 million and selling, general and administrative expense to $64.2 million, and the company states it expects to report a net loss at least through 2001 as it invests in intellectual property, drug discovery, proteomics and bioinformatics. The balance sheet was strengthened by financing in February 2000: $200.0 million of 5.5% convertible subordinated notes due 2007 and a private placement of 4,000,000 common shares for $422.0 million gross. Cash, cash equivalents and marketable securities totaled $582.2 million at December 31, 2000, against $66.9 million a year earlier, and stockholders' equity was $622.7 million. The company acquired Proteome, Inc. in December 2000 for 1,248,522 shares and $37.7 million in cash, creating $70.8 million of excess purchase price over net tangible assets, mostly goodwill and database value. The main risk highlighted is litigation with Affymetrix, Inc., which has sued the company for patent infringement and seeks injunctions, damages and tripled damages for alleged willful infringement. The company has countersued Affymetrix and states it cannot reasonably estimate a possible range of loss. The company also settled its lawsuits with Gene Logic Inc. in January 2001, with Gene Logic receiving a non-exclusive license. Other risks include dependence on a small number of database collaborators, with one customer contributing 11% of 2000 revenues, and the company's stated intention not to develop pharmaceutical products itself.
Apr 2, 2001
1999
Incyte Annual Report, Year Ended Dec 31, 1999
Incyte Pharmaceuticals, Inc. reported a 1999 net loss of $26.8 million, or $0.95 per share, on revenues of $157.0 million, compared with net income of $3.5 million on revenues of $134.8 million in 1998. Revenue came primarily from non-exclusive database access fees paid by more than 20 database collaborators, while research and development expense rose to $146.8 million from $97.2 million, driven by genomic sequencing, mapping, and SNP discovery initiatives. The Company stated it expects to report a net loss at least through 2000 as it increases investment in sequencing, bioinformatics, expression database development, and SNP discovery. The balance sheet shows cash, cash equivalents and marketable securities of $66.9 million at December 31, 1999, down from $111.2 million a year earlier, and an accumulated deficit of $55.2 million. In February 2000, the Company strengthened its capital position by issuing $200.0 million of 5.5% convertible subordinated notes due 2007 (net proceeds about $196.8 million) and 2,000,000 shares of common stock in a private placement for $422.0 million gross (net proceeds $398.3 million). The Company also faces Affymetrix patent infringement lawsuits against Incyte and its Synteni subsidiary, for which it cannot reasonably estimate a possible range of loss. The Company's 50-50 joint venture with SmithKline Beecham, diaDexus, LLC, is developing molecular diagnostics, and Incyte recorded $5.6 million of losses from that venture in 1999. Management expects cash requirements to increase in 2000 and states that existing resources are adequate to satisfy capital needs for at least the next twelve months.
Mar 22, 2000
1998
Incyte Annual Report, Year Ended Dec 31, 1998
Incyte Pharmaceuticals, Inc. reported total 1998 revenues of $134.8 million, up from $90.0 million in 1997, and net income of $3.5 million, or $0.12 diluted per share, compared with $6.9 million in 1997. Results were held down by a one-time $11.0 million charge for purchased in-process R&D tied to the September 1998 Hexagen acquisition and $1.2 million in acquisition-related charges. Revenue came primarily from non-exclusive database access fees under agreements with 22 companies as of December 31, 1998, and the company's database modules span human, microbial and animal genomic data, plus microarray gene expression services and SNP discovery. Management guided to heavier spending in 1999, with about $45 million planned for genomic sequencing, mapping and SNP discovery programs and an expected net loss of approximately $20 million for 1999. The company does not expect positive operating cash flow in 1999 but says existing resources and cash flow should be adequate for at least the next twelve months. It held $111.2 million in cash, cash equivalents and marketable securities at year-end 1998, and stockholders' equity was $179.6 million. The filing highlights material risks, including Affymetrix patent infringement lawsuits against Incyte and its Synteni subsidiary, a preliminary injunction hearing scheduled for April 30, 1999, and a company statement that it cannot reasonably estimate a possible range of loss. Other risks include dependence on a limited number of database collaborators, uncertain patent protection for gene sequences and SNPs, and an unproven SNP business that has generated no revenues to date.
Mar 25, 1999
1997
Incyte Annual Report, Year Ended Dec 31, 1997
Incyte Pharmaceuticals, Inc. (the "Company") reported net income of $10.4 million for 1997, compared with net losses of $6.8 million in 1996 and $9.9 million in 1995. Revenues rose to $88.4 million in 1997 from $41.8 million in 1996 and $12.2 million in 1995, driven primarily by an increase in the number of database collaboration agreements. As of December 31, 1997, the Company had nineteen database collaborators, and the filing notes that revenue is predominantly derived from non-exclusive database access fees. Research and development expense was $68.9 million in 1997, and selling, general and administrative expense was $12.1 million. The Company had an accumulated deficit of $26.1 million at year-end. The Company's balance sheet strengthened considerably during 1997. Cash, cash equivalents and marketable securities totaled $114.7 million at December 31, 1997, up from $38.3 million a year earlier, primarily reflecting net proceeds of $87.2 million from a July 1997 follow-on stock offering. Stockholders' equity was $146.0 million, and total assets were $193.1 million. The filing states that existing resources are expected to be adequate to meet capital needs at least through 1998. The filing highlights several risks. In January 1998, the Company acquired Synteni, Inc., a microarray-based gene expression company, in a transaction to be accounted for as a pooling of interests; the filing says Synteni's losses will weigh on earnings per share for at least the first half of 1998, and Synteni's revenues to date consist of small pilot agreements. Affymetrix filed a patent infringement lawsuit against Synteni and the Company on January 6, 1998, seeking damages that could be trebled for alleged willful infringement, and the Company intends to defend the suit vigorously.
Mar 30, 1998