01—Abstract
Summary
Summary of the 10-K filed February 10, 2025. Cited figures are marked; the original filing is the authoritative source.
Incyte Corporation's 10-K for fiscal 2024 reports total revenues of $4.24 billiona, 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 millionb 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 billionc 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 milliond 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.
02—Key points
Key Highlights
- Total revenues of $4.24 billion for 2024, up from $3.70 billion in 2023; total product revenues, net of $3.62 billion.
- JAKAFI net revenues of $2.79 billion (2023: $2.59 billion); OPZELURA net revenues of $508.3 million (2023: $337.9 million).
- Net income of $32.6 million (diluted EPS $0.15), down from $597.6 million (diluted EPS $2.65), driven by a $679.4 million in-process R&D charge from the Escient acquisition.
- Research and development expenses of $2.61 billion, up from $1.63 billion in 2023.
- Share repurchases totaling approximately $2.0 billion in June 2024 at $60.00 per share; cash, cash equivalents and marketable securities fell to $2.16 billion from $3.66 billion.
- Accrued Novartis royalties of $507.4 million at year-end 2024 remain subject to the outcome of a contract dispute over U.S. JAKAFI royalties.
- Revolving credit facility of $500.0 million with no outstanding borrowings at December 31, 2024; the facility matures in June 2027.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Incyte kept $0.01.
- Revenue$4.24B100.0%
- Cost of revenue−$312.1M7.4%
- Gross profit$3.93B92.6%
- Operating costs−$3.87B91.2%
- Operating income$61.4M1.4%
- Interest, other & tax−$28.8M0.7%
- Net income$32.6M0.8%
Where FY2024 revenue went
$4.24B- R&D: $2.61B, 61% of revenue
- SG&A: $1.24B, 29% of revenue
- Net income: $32.6M, 0.8% of revenue
- Cost of revenue: $312.1M, 7.4% of revenue
- Interest, other & tax: $28.8M, 0.7% of revenue
Kept 0.8% as net incomeNet income $32.6M · 0.8%Interest, other & tax $28.8M · 0.7%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 10, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $4.24B$3.70B | +14.8% |
| Cost of Revenue | $312.07M$254.99M | +22.4% |
| Gross Profit | $3.93B$3.44B | +14.2% |
| R&D Expenses | $2.61B$1.63B | +60.2% |
| SG&A Expenses | $1.24B$1.16B | +7.5% |
| Operating Expenses | $4.18B$3.08B | +35.9% |
| Operating Income | $61.37M$620.52M | −90.1% |
| Net Income | $32.60M$597.60M | −94.5% |
| EPS (Basic) | $0.16$2.67 | −94.0% |
| EPS (Diluted) | $0.15$2.65 | −94.3% |
| Shares Outstanding (Basic) | 207.11M223.63M | −7.4% |
| Shares Outstanding (Diluted) | 210.53M225.93M | −6.8% |
05—Questions
Frequently Asked Questions
Why did Incyte's net income fall so sharply in 2024?
Net income was $32.6 million in 2024 versus $597.6 million in 2023. The main driver was $679.4 million of research and development expense for acquired in-process research and development assets from the Escient acquisition, which was accounted for as an asset acquisition. Non-deductible charges of $710.9 million associated with Escient also pushed the effective tax rate to 89.7%.
How much is Incyte dependent on JAKAFI?
The filing states that JAKAFI product sales are expected to continue to contribute a significant percentage of total revenues over the next several years. JAKAFI net revenues were $2.79 billion in 2024, out of total revenues of $4.24 billion. The company also notes that loss of revenue from JAKAFI could materially harm the business.
How much cash does Incyte have and what did it do with it?
Cash, cash equivalents and marketable securities were $2.16 billion at December 31, 2024, down from $3.66 billion a year earlier. Financing activities used $2.02 billion, primarily for the June 2024 share repurchase. The Escient acquisition for $782.5 million in cash also reduced the balance. The company believes its cash flow, existing resources and revolving credit facility will be adequate for the foreseeable future.
What legal and regulatory matters could affect Incyte's revenue?
Incyte is in a contract dispute with Novartis over royalties on U.S. JAKAFI net sales, with $507.4 million of accrued royalties at year-end 2024 dependent on that outcome. It has also sued CMS over whether OPZELURA should be treated as a line extension of JAKAFI for Medicaid rebate purposes; it accrued approximately $127.6 million relating to incremental rebates in that scenario. In addition, Incyte has patent litigation over JAKAFI generic challenges and against Sun Pharmaceutical over its deuterated ruxolitinib product.
What are the key pipeline and product milestones in the filing?
NIKTIMVO (axatilimab-csfr) received FDA approval in August 2024 for chronic GVHD after at least two prior lines of systemic therapy, with U.S. commercial launch starting at the end of January 2025. Tafasitamab met its primary endpoint in the Phase 3 inMIND trial in relapsed or refractory follicular lymphoma, and an sBLA was submitted to the FDA in December 2024. A retifanlimab sBLA for squamous cell anal cancer was filed in December 2024, with approval anticipated in the second half of 2025.
06—Continue