01—Abstract
Summary
Summary of the 10-K/A filed March 17, 2017. Cited figures are marked; the original filing is the authoritative source.
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.
02—Key points
Key Highlights
- Item 15 exhibit listing; financial statements and schedules are incorporated by reference to the Original Form 10-K under Item 8
- New collaboration: Collaboration and License Agreement and Share Subscription Agreement with Merus N.V., both dated December 20, 2016
- Fourth Amendment, effective December 13, 2016, to the License, Development and Commercialization Agreement with Eli Lilly and Company
- Several material agreements, including Pfizer, Novartis, Eli Lilly, Agenus, Jiangsu Hengrui, ARIAD and Merus, have confidential treatment requested for portions
- Indentures dated November 14, 2013 with U.S. Bank National Association, as trustee, are listed as exhibits 4.2 and 4.3
- Compensation arrangements listed include the Amended and Restated 2010 Stock Incentive Plan and the 1997 Employee Stock Purchase Plan, and executive employment agreements
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2016, Incyte kept $0.09.
- Revenue$1.11B100.0%
- Cost of revenue−$58.2M5.3%
- Gross profit$1.05B94.7%
- Operating costs−$902.5M81.6%
- Operating income$145.0M13.1%
- Interest, other & tax−$40.8M3.7%
- Net income$104.2M9.4%
Where FY2016 revenue went
$1.11B- R&D: $581.9M, 53% of revenue
- SG&A: $303.3M, 27% of revenue
- Net income: $104.2M, 9.4% of revenue
- Cost of revenue: $58.2M, 5.3% of revenue
- Other operating costs: $17.4M, 1.6% of revenue
- Interest, other & tax: $40.8M, 3.7% of revenue
Kept 9.4% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-K/AFY2016filed March 17, 2017Financial Statements
FY2016 against FY2015
| Line item | FY2016FY2015 | Change |
|---|---|---|
| Revenue | $1.11B$753.75M | +46.7% |
| Cost of Revenue | $58.19M$26.97M | +115.7% |
| Gross Profit | $1.05B$726.78M | +44.1% |
| R&D Expenses | $581.86M$479.51M | +21.3% |
| SG&A Expenses | $303.25M$196.61M | +54.2% |
| Operating Expenses | $960.72M$703.10M | +36.6% |
| Operating Income | $145.00M$50.65M | +186.3% |
| Interest Expense | $38.74M$45.60M | −15.0% |
| Net Income | $104.22M$6.53M | +1495.8% |
| EPS (Basic) | $0.55$0.04 | +1275.0% |
| EPS (Diluted) | $0.54$0.03 | +1700.0% |
| Shares Outstanding (Basic) | 187.87M179.60M | +4.6% |
| Shares Outstanding (Diluted) | 194.13M187.30M | +3.6% |
05—Questions
Frequently Asked Questions
Does this filing contain Incyte's full financial statements?
No. The filing states that the Index to Consolidated Financial Statements appears under Item 8 of Part II of the Original Form 10-K, and it incorporates those statements by reference. Financial statement schedules are omitted as not applicable or not required, or because the information is included elsewhere in the Consolidated Financial Statements or Notes.
What new collaboration agreements did Incyte enter into with Merus N.V.?
The exhibit list includes a Collaboration and License Agreement dated December 20, 2016, between Incyte and Merus N.V., and a Share Subscription Agreement dated December 20, 2016, between Incyte and Merus N.V. Both are filed with this report, and portions of the Collaboration and License Agreement are subject to a confidential treatment request. The filing does not describe the economic terms.
Which agreements have confidential treatment requested for portions of their terms?
Agreements marked with a dagger include the Pfizer Collaborative Research and License Agreement, the Novartis Collaboration and License Agreement and its 2016 amendment, the Eli Lilly License, Development and Commercialization Agreement and its amendments, the Agenus-related license agreement, the Jiangsu Hengrui license and collaboration agreement, the ARIAD share purchase and buy-in license agreements, the Merus agreements, and the Augustine Land I lease.
What compensation plans are referenced in the exhibits?
The exhibits reference the 1991 Stock Plan, the 1993 Directors' Stock Option Plan, the Amended and Restated 2010 Stock Incentive Plan, the 1997 Employee Stock Purchase Plan, and related stock option, restricted stock unit and performance share award agreement forms. Employment agreements with Barry P. Flannelly, David W. Gryska, Steven H. Stein, Vijay K. Iyengar, Reid M. Huber, Richard S. Levy, Eric H. Siegel, Paula J. Swain, Wenqing Yao and Hervé Hoppenot are also listed.
Are there any debt instruments referenced in the filing?
Yes. The filing lists two indentures, both dated November 14, 2013, between the Company and U.S. Bank National Association, as trustee. The filing does not state the principal amounts, interest rates or maturities in this exhibit listing.
06—Continue