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Incyte Annual Report, Year Ended Dec 31, 2007

Filing Date
Filed March 6, 2008
Period End
December 31, 2007
Security
INCY
In the record · 2016–202610-K1510-Q348-K107

INCY filed 15 annual reports (10-K), 34 quarterly reports (10-Q) and 107 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Dec ’16Dec ’16
  2. FY2018 annual report10-K · Feb ’19Feb ’19
  3. Leadership change8-K · Jan ’22Jan ’22
  4. Leadership change8-K · Dec ’25Dec ’25

01—Abstract

Summary

Summary of the 10-K filed March 6, 2008. Cited figures are marked; the original filing is the authoritative source.

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 milliona 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 millionb, 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.

02—Key points

Key Highlights

  1. Net loss of $86.9 million in 2007, versus $74.2 million in 2006; net loss per share of $1.03 versus $0.89.
  2. Total revenues of $34.4 million in 2007, up from $27.6 million in 2006, with contract revenues of $29.8 million tied primarily to Pfizer.
  3. Research and development expenses of $104.9 million in 2007, up from $87.6 million in 2006.
  4. Cash, cash equivalents and marketable securities of $257.3 million at December 31, 2007, down from $329.8 million a year earlier.
  5. Aggregate principal amount of total consolidated debt of $421.8 million and a stockholders' deficit of $159.5 million at December 31, 2007.
  6. Lead JAK inhibitor INCB18424 is in Phase IIa trials in myelofibrosis, rheumatoid arthritis and psoriasis, with a follow-on compound, INCB28050, expected to enter clinical trials in 2008.
  7. Pfizer agreement for CCR2 antagonists provides a $40.0 million upfront payment, potential milestones of up to $740.0 million and royalties on worldwide sales, with the company retaining multiple sclerosis and lupus nephritis rights.

03—Questions

Frequently Asked Questions

  1. How much did Incyte lose in 2007 and how did that compare with 2006?

    Incyte reported a net loss of $86.9 million, or $1.03 per basic and diluted share, for 2007, compared with a net loss of $74.2 million, or $0.89 per share, for 2006.

  2. Does Incyte have any approved or revenue-generating drug products?

    No. The filing states that none of the company's drug candidates has been submitted for approval for sale in the United States or any foreign market, and that to date it does not have any drug products that have generated revenues.

  3. What is the main source of Incyte's current revenue?

    The filing states that substantially all revenue for 2007 was derived from the collaborative research and license agreement with Pfizer and from licensing intellectual property. Contract revenues were $29.8 million and license and royalty revenues were $4.6 million.

  4. How much debt does Incyte carry and when does it come due?

    As of December 31, 2007, aggregate principal amount of total consolidated debt was $421.8 million. This includes $151.8 million of 3.5% convertible senior notes due 2011, $250.0 million of 3.5% convertible subordinated notes due 2011, and $20.0 million of non-interest bearing Pfizer convertible subordinated notes due 2013 and 2014.

  5. Will Incyte need additional capital?

    The filing states that the company anticipates it will need to raise additional capital to fund its business plan and research and development efforts. It also states that management believes existing cash, cash equivalents and marketable securities will be adequate for at least the next twelve months.

04—Continue

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