Incyte's 2024 Q4 Earnings Call: Contradictions in Opzelura Growth, Guidance, and R&D Strategy

These are the key contradictions discussed in Incyte's latest 2024Q4 earnings call, specifically including: Opzelura growth expectations and patient affordability, Opzelura guidance assumptions, Povorcitinib's clinical bar for Phase III, Pipeline Restructuring and R&D Strategy, and Opzelura Formulary Placements and Market Growth:



Revenue Growth and Product Performance:
- Incyte reported revenues of $4.2 billion for 2024, up 15% from 2023, driven by consistent growth since 2020.
- The growth was primarily supported by the consistent performance of Jakafi and strong growth from Opzelura contributed to revenue diversification.

Jakafi and Opzelura Sales:
- Jakafi net sales were $2.8 billion in 2024, up 8% from the prior year, with growth across all indications, particularly Polyncythemia Vera (PV) contributing significantly.
- Opzelura net product revenue grew 50% to $508 million, driven by new patient starts and refills in AD and vitiligo in the U.S. and expanding reimbursement outside the U.S.

Pipeline and Approvals:
- Incyte launched Niktimvo, its first anti-CSF-1R antibody, and expects approvals in the second half of 2025 for ruxolitinib cream in pediatric AD and tafasitamab in follicular lymphoma, potentially contributing collectively $1 billion in revenues by 2029.
- The company anticipates strong contributions from its pipeline with significant milestone expected in 2025, including potential product launches and pivotal data readouts.

Operating Expenses and Strategic Investments:
- Total R&D expenses increased 14% year-on-year, primarily due to investment in late-stage programs, while SG&A expenses increased 7% due to marketing activities and new product launches.
- Despite increased expenses, the company maintained strong operating leverage and margins.