Incyte Reports Third Quarter 2026 Financial Results and Provides Business
Incyte Reports Third Quarter 2026 Financial Results and Provides Business Updates
Total revenue of $1.56 billion and total net sales of $1.32 billion in the third quarter of 2026, each an increase of 14% compared to the third quarter of 2025
Jakafi ® /Jakafi XR ™ (ruxolitinib) net sales of $827 million, an increase of 4% compared to the same period in 2025
Continued growth in core business (ex-Jakafi), with Opzelura ® (ruxolitinib) cream net sales of $255 million and Hematology and Oncology net sales of $235 million, an increase of 36% and 38%, respectively, versus the prior year period
Raising 2026 full year financial guidance for Opzelura net sales, Hematology and Oncology net sales and total net sales
Phase 1 data for INCB161734 and INCA033890 support an expanding GI Oncology development strategy, including multiple ongoing and planned registrational studies in 2027
Advancing multiple registrational programs in Hematology, with Phase 3 studies underway or planned for INCA033989 in essential thrombocythemia (ET) and myelofibrosis (MF), and latarcibart in von Willebrand disease (VWD)
Phase 3 data expected by year-end for povorcitinib in prurigo nodularis (PN) and ruxolitinib cream in hidradenitis suppurativa (HS)
– Incyte (Nasdaq:INCY) today reported financial results for the third quarter of 2026 and provided a business update.
“Our third quarter was marked by strong commercial performance, meaningful pipeline progress and important regulatory achievements,” said Bill Meury, Chief Executive Officer, Incyte. “Net sales growth was strong in both the U.S. and internationally, creating a durable core business beyond Jakafi. At the same time, we are advancing a pipeline led by a CALR-targeted monoclonal antibody for myeloproliferative neoplasms, a novel Protein S modulator for von Willebrand disease, a KRAS G12D inhibitor for pancreatic and colorectal cancers and a TGFβR2×PD-1 bispecific antibody for colorectal cancer. Each represents a significant opportunity for Incyte, and together they give us multiple paths to growth beyond 2029. With important clinical, regulatory and commercial catalysts ahead, we are well positioned to create long-term value for patients and shareholders.”
• Total revenue: Total revenue was $1.56 billion, an increase of 14% compared to the third quarter of 2025, primarily driven by an increase in total net sales across marketed products.
• Total net sales: Total net sales were $1.32 billion, an increase of 14% compared to the third quarter of 2025, driven by increased demand across marketed products.
◦ Jakafi ® /Jakafi XR ™ (ruxolitinib) net sales of $827 million, an increase of 4% compared to the same period in 2025.
◦ Opzelura ® (ruxolitinib) cream net sales of $255 million, an increase of 36% versus the prior year period.
◦ Hematology and Oncology portfolio net sales of $235 million, an increase of 38% compared to the third quarter of 2025.
• Cost of sales: GAAP and non-GAAP cost of sales were $108.7 million and $102.2 million, respectively, representing 8% of total net sales. 1 • Research and development (R&D) expenses: GAAP and non-GAAP R&D expenses were $1.79 billion and $1.75 billion, an increase of 254% and 274%, respectively, compared to the prior year period, primarily driven by a one-time $1.23 billion IPR&D expense related to the acquisition of Vega Therapeutics. Excluding the Vega IPR&D expense, GAAP research and development expenses increased 11% as compared to the same period in 2025 primarily driven by late-stage development efforts.
• Selling, general and administrative (SG&A) expenses: GAAP and non-GAAP SG&A expenses were $364.3 million and $339.1 million, an increase of 11% and 10%, respectively, compared to the prior year period.
• Cash, cash equivalents and marketable securities position: As of September 30, 2026 and December 31, 2025, cash, cash equivalents and marketable securities totaled $3.9 billion and $3.6 billion, respectively.
Incyte is raising its full year 2026 net sales guidance for Opzelura to $1,100 - $1,120 million, Hematology and Oncology to $890 - $910 million and total net sales to $5,210 - $5,300 million to reflect continued strong performance across the portfolio. Incyte is reaffirming its full year 2026 guidance for all other categories.
Current Previous Total net sales $5,210 - $5,300 million $5,130 - $5,260 million Jakafi net sales(1) Unchanged $3,220 - $3,270 million Opzelura net sales(2) $1,100 - $1,120 million $1,050 - $1,100 million Hematology and $890 - $910 million $860 - $890 million Oncology net sales(3) Total GAAP R&D and SG&A operating Unchanged $4,915 - $4,995 million expenses(4) Total Non-GAAP R&D and SG&A operating Unchanged $4,625 - $4,695 million expenses(4,5)
1 Includes Jakafi and Jakafi XR ™ (ruxolitinib) net sales. 2 Includes a one-time $246 million benefit related to our agreement with CMS to resolve our litigation related to the application of Medicaid rebate rules to Opzelura. 3 Includes Pemazyre ® (pemigatinib) in the U.S., Canada, Europe, Japan, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America (LatAm); Niktimvo ™ (axatilimab-csfr) and Monjuvi ® (tafasitamab-cxix) in the U.S.; Zynyz ® (retifanlimab-dlwr) in the U.S., Europe and Japan; Iclusig ® (ponatinib) in Europe and MEA; and Minjuvi ® (tafasitamab) in Canada, Europe, Japan, APAC, MEA and LatAm.
4 Includes upfront cost related to the acquisition of Vega Therapeutics, which was recognized as a $1.23 billion IPR&D expense in the third quarter of 2026.
• A Phase 3 study (EXCALIBUR-MF2) is expected to initiate by year end 2026, following positive End-of-Phase 2 interactions with the U.S. Food and Drug Administration (FDA) in the third quarter. The trial will evaluate INCA033989 versus best available therapy (BAT) in patients with CALR-mutated myelofibrosis (MF) who were previously treated with a JAK inhibitor.
• The registrational Phase 3 study (EXCALIBUR-ET2), evaluating INCA033989 in mutCALR positive patients with essential thrombocythemia (ET) who are resistant or intolerant to at least one prior cytoreductive therapy was initiated in mid-2026.
• Data from the Phase 1 cohort evaluating INCA033989 as a monotherapy and in combination with ruxolitinib in treatment naïve patients with MF are anticipated in the fourth quarter of 2026.
• The Phase 3 study (VIVID-6) evaluating once-monthly subcutaneous (SC) administration of latarcibart as bleeding prophylaxis in patients with all types of von Willebrand disease (VWD) is ongoing. Topline data from the VIVID-6 study are anticipated in early 2029. 2
• Global regulatory submissions for Monjuvi/Minjuvi as a treatment for patients with newly diagnosed diffuse large B-cell lymphoma (DLBCL) are under regulatory review. The Company anticipates a potential approval and launch in the U.S. in the first quarter of 2027.
• Results from the Phase 2 trial evaluating axatilimab in combination with ruxolitinib in patients with newly diagnosed chronic graft-versus-host disease (GVHD) are expected to be presented at a medical meeting in the first quarter of 2027.
• Data from the ongoing Phase 1 trial presented at the 2026 European Society for Medical Oncology (ESMO) Congress demonstrated high response rates and early evidence of durable clinical benefit with INCB161734 in combination with standard-of-care chemotherapy (mFOLFIRINOX or GEMNabP) as a first-line treatment in patients with metastatic pancreatic ductal adenocarcinoma (PDAC), further supporting its potential as a first-line treatment option.
• A Phase 3 study (DAWN-303) evaluating INCB161734 in combination with standard- of-care chemotherapy versus chemotherapy alone as a first-line treatment in patients with metastatic PDAC is ongoing, with topline data anticipated in 2028.
• A Phase 3 study evaluating INCB161734 as adjuvant therapy following surgical resection in patients with PDAC is expected to initiate in 2027.
• Data from the ongoing Phase 1 trial presented at ESMO demonstrated notable antitumor activity with INCB161734, both as monotherapy and in combination with cetuximab, in heavily pretreated metastatic colorectal cancer (CRC) patients, supporting further development in this patient population.
• A Phase 3 study (DAWN-302) evaluating INCB161734 in combination with cetuximab in patients with previously treated CRC is expected to initiate in the first half of 2027.
• Data from the ongoing Phase 1 trial presented at the 2026 ESMO Congress demonstrated encouraging clinical activity and a manageable safety profile of INCA33890 in combination with standard-of-care (SoC) chemotherapy and bevacizumab as a first-line treatment in patients with microsatellite-stable colorectal cancer (MSS CRC), supporting the ongoing Phase 3 study (NEXERA-303) and expansion of the program into earlier-stage disease.
• A Phase 3 study (NEXERA-303) evaluating INCA33890 in combination with SoC chemotherapy and bevacizumab as a first-line treatment in patients with MSS CRC is ongoing, with topline data anticipated in 2029.
• In October, a Phase 2 study (NEXERA-204) evaluating INCA33890 for the treatment of patients with circulating tumor DNA-positive stage II/III MSS CRC after curative resection and chemotherapy, was initiated.
• As part of a strategic shift in focus toward the first-line maintenance ovarian cancer setting, enrollment in the Phase 3 study (MAESTRA-2) evaluating INCB123667 in patients with platinum-resistant ovarian cancer (PROC) was discontinued.
• A Phase 3 study (MAESTRA-3) evaluating INCB123667 in combination with bevacizumab as first-line maintenance therapy in patients with ovarian cancer is expected to initiate in the fourth quarter of 2026.
• Preliminary efficacy data from the ongoing Phase 1 trial evaluating INCB123667 in combination with bevacizumab in patients with recurrent epithelial ovarian cancer (rEOC) were presented as a rapid oral presentation at the 2026 ESMO Congress. 3
• In July, the European Commission (EC) approved Opzelura for the treatment of moderate atopic dermatitis (AD) in adult patients for whom topical corticosteroids (TCSs) and topical calcineurin inhibitors (TCIs) are inadequate or inappropriate. Opzelura is the first steroid-free topical JAK inhibitor approved in the European Union (EU) for adults with moderate AD. This approval represents Opzelura’s second approved indication in the EU.
• Topline results from the Phase 3 studies (TRuE-HS1 and TRuE-HS2) evaluating ruxolitinib cream in patients with mild to moderate hidradenitis suppurativa (HS) are anticipated in the fourth quarter of 2026.
• In September, the Committee for Medicinal Products for Human Use (CHMP) issued a positive opinion recommending the approval of povorcitinib (Povofortay ® ) for the treatment of active moderate to severe HS in adults who have responded inadequately to, or who are intolerant or contraindicated to, an anti-TNF therapy. A regulatory decision from the EC is anticipated in the fourth quarter of 2026.
• The New Drug Application (NDA) for povorcitinib as a treatment for patients with moderate to severe HS is under regulatory review and the Company anticipates a potential U.S. approval and launch in the first quarter of 2027.
• Data from the Phase 3 studies (STOP-PN1 and STOP-PN2) evaluating povorcitinib in patients with moderate to severe prurigo nodularis (PN) are anticipated in the fourth quarter of 2026.
• Topline data from the Phase 2 proof-of-concept trial for povorcitinib in patients with asthma are anticipated by year-end 2026.
• In July, the Company completed its acquisition of Vega Therapeutics, Inc., a wholly owned subsidiary of Star Therapeutics, LLC. The acquisition added latarcibart, a novel investigational monoclonal antibody in Phase 3 development for patients with VWD, to Incyte’s late-stage pipeline. Under the terms of the parties’ stock purchase agreement, Incyte acquired all outstanding shares of Vega Therapeutics for $1.25 billion. Star Therapeutics will be eligible to receive up to $750 million in additional payments upon the achievement of sales milestones.
• In August, the Company entered into an agreement with the U.S. Centers for Medicare & Medicaid Services (CMS) intended to improve access to medicines for American patients while supporting continued U.S. biopharmaceutical innovation. Under the agreement, the Company will enable state Medicaid programs to access Jakafi and Jakafi XR at prices aligned with those in a defined group of other advanced, industrialized nations. Additionally, the Company expects that it will not be subject to certain future CMS pricing mandates, including the proposed GUARD and GLOBE models.
The financial measures presented in this press release for the three and nine months ended September 30, 2026 and 2025 have been prepared by the Company in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), unless otherwise identified as a Non-GAAP financial measure. Management believes that Non-GAAP information is useful for investors, when considered in conjunction with Incyte’s GAAP disclosures. Management uses such information internally and externally for establishing budgets, operating goals and financial planning purposes. These metrics are also used to manage the Company’s business and monitor performance. The Company adjusts, where appropriate, for expenses in order to reflect the Company’s core operations. The Company believes these adjustments are useful to investors by providing an enhanced understanding of the financial performance of the Company’s core operations. The metrics have been adopted to align the Company with disclosures provided by industry peers.
Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used in conjunction with and to supplement Incyte’s operating results as reported under GAAP. Non-GAAP measures may be defined and calculated differently by other companies in our industry. 4 As changes in exchange rates are an important factor in understanding period-to- period comparisons, management believes the presentation of certain revenue results on a constant currency basis in addition to reported results helps improve investors’ ability to understand the Company’s operating results and evaluate its performance in comparison to prior periods. Constant currency information compares results between periods as if exchange rates had remained constant period over period. The Company calculates constant currency by calculating current year results using prior year foreign currency exchange rates and generally refers to such amounts calculated on a constant currency basis as excluding the impact of foreign exchange or being on a constant currency basis. These results should be considered in addition to, not as a substitute for, results reported in accordance with GAAP. Results on a constant currency basis, as the Company presents them, may not be comparable to similarly titled measures used by other companies and are not measures of performance presented in accordance with GAAP.
1. All stock options and stock awards were excluded from the diluted share calculation for the three months ended September 30, 2026 because their effect would have been anti-dilutive, as we were in a net loss position. 5
1 Percentage change in constant currency is calculated using 2025 foreign exchange rates to recalculate 2026 results.
2 2026 Jakafi net sales include Jakafi and Jakafi XR following the launch of Jakafi XR in the second quarter of 2026. 3 Opzelura net sales for the nine months ended September 30, 2026 include $246.0 million related to our agreement with CMS to resolve our litigation related to the application of Medicaid rebate rules to Opzelura.
Total net sales and royalty revenue for the quarter ended September 30, 2026 increased 14% over the prior year comparable period.
• Total net sales for the quarter ended September 30, 2026 increased 14% over the prior year comparable period.
• Jakafi net sales increased 4% in the third quarter of 2026 versus the prior year comparable period to $827 million, primarily driven by a 12% increase in paid demand and growth across all indications. Jakafi inventory levels were within normal range at the end of the third quarter of 2026.
• Opzelura net sales increased 36% in the third quarter of 2026 versus the prior year comparable period to $255 million. Net growth was driven by increased patient demand in both AD and vitiligo and improvements in net pricing resulting from the Opzelura line extension settlement in the second quarter. Opzelura inventory levels were within normal range at the end of the third quarter of 2026.
• Hematology and oncology net sales increased 38% in the third quarter of 2026 versus the prior year comparable period to $235 million, driven by increased demand for Niktimvo, Zynyz and Monjuvi/Minjuvi. 6
1 Non-GAAP cost of sales excludes the amortization of licensed intellectual property for Iclusig relating to the acquisition of the European business of ARIAD Pharmaceuticals, Inc. and the cost of stock-based compensation.
2 Non-GAAP research and development expenses exclude the cost of stock-based compensation, Escient acquisition related compensation expense related to severance payments, and Vega transition costs primarily representing employee related costs to transition research and development activities to us as part of the Vega acquisition, as well as retention payments to former Vega employees.
3 Non-GAAP selling, general and administrative expenses exclude the cost of stock-based compensation and Escient acquisition related compensation expense related to severance payments.
GAAP and Non-GAAP cost of sales for the quarter ended September 30, 2026 were $108.7 million and $102.2 million, respectively, representing 8% of total net sales. 8
In May 2025, Incyte and Novartis entered into a settlement agreement with respect to litigation relating to the duration of royalty payments owed under the Collaboration and License Agreement between Incyte and Novartis. Under the settlement agreement, the royalty rate payable by Incyte on future net sales of Jakafi in the United States is reduced by 50% beginning January 1, 2025 and Incyte paid Novartis $280.0 million as the settlement of disputed royalties on net sales of Jakafi in the United States through December 31, 2024. The difference of $242.2 million between the accrued royalties and the total amount paid by us to Novartis was recorded in contract dispute settlement on the condensed consolidated statement of operations for the nine months ended September 30, 2025.
GAAP and Non-GAAP research and development expenses for the quarter ended September 30, 2026 were $1.79 billion and $1.75 billion, an increase of 254% and 274%, respectively, compared to the same period in 2025, primarily driven by the upfront consideration associated with the Vega acquisition, increased investment in latarcibart and continued advancement of our late stage development portfolio. Excluding the Vega acquisition upfront consideration, GAAP research and development expenses increased 11% as compared to the same period in 2025, primarily reflecting increased investment in our late stage development assets.
GAAP and Non-GAAP selling, general and administrative expenses for the quarter ended September 30, 2026 were $364.3 million and $339.1 million, an increase of 11% and 10%, respectively, compared to the same period in 2025, primarily due to pre-launch activities.
Change in fair value of acquisition-related contingent consideration The change in fair value of contingent consideration during the quarter ended September 30, 2026, compared to the same period in 2025, was primarily due to updated projections of future net sales of Iclusig, including the impacts from fluctuations in foreign currency exchange rates.
GAAP and Non-GAAP operating income for the quarter ended September 30, 2026 decreased 260% and 226%, respectively, compared to the same period in 2025, driven primarily by the impact of the Vega acquisition, offset partially by growth in total revenue. Excluding the Vega acquisition upfront consideration, GAAP operating income increased 18% primarily driven by growth in total revenue.
Cash, cash equivalents and marketable securities position Cash, cash equivalents and marketable securities as of September 30, 2026, were $3.9 billion, compared to $3.6 billion as of December 31, 2025.
Incyte will hold a conference call and webcast this morning at 8:00 a.m. ET. To access the conference call, please dial 877-407-3042 for domestic callers or 201-389-0864 for international callers. When prompted, provide the conference identification number, 13763051.
If you are unable to participate, a replay of the conference call will be available for 90 days. The replay dial-in number for the United States is 877-660-6853 and the dial-in number for international callers is 201-612-7415. To access the replay you will need the conference identification number, 13763051.
The conference call will also be webcast live and can be accessed at investor.incyte.com.
Incyte is redefining what’s possible in biopharmaceutical innovation. Through deep scientific expertise and a relentless focus on patients, we have built an established portfolio of first-in-class medicines and an extensive portfolio of next-generation medicines across our key franchises: Hematology, Oncology and Inflammation and Autoimmunity.
To learn more, visit Incyte.com and Investor.Incyte.com. Follow us on social media: LinkedIn , X and Instagram .
Jakafi ® (ruxolitinib) is a JAK1/JAK2 inhibitor approved for use in the U.S. for the treatment of polycythemia vera (PV) in adults who have had an inadequate response to, or are intolerant of, hydroxyurea; intermediate or high-risk myelofibrosis (MF), including primary MF, post-PV MF and post-essential thrombocythemia MF in adults; steroid-refractory acute graft- 9 versus-host disease (GVHD) in adult and pediatric patients 12 years and older; and chronic GVHD after failure of one or two lines of systemic therapy in adult and pediatric patients 12 years and older.
Jakafi XR ™ (ruxolitinib) extended-release tablets are a once-daily (QD) formulation of ruxolitinib, approved for use in the U.S. for the treatment of PV in adults who have had an inadequate response to, or are intolerant of, hydroxyurea; intermediate or high-risk MF, including primary MF, post-PV MF, and post-essential thrombocythemia MF in adults; steroid-refractory acute GVHD in adult and pediatric patients 12 years and older; and chronic GVHD after failure of one or two lines of systemic therapy in adult and pediatric patients 12 years and older.
It is not known if Jakafi XR is safe or effective in children for the treatment of MF or PV.
Opzelura ® (ruxolitinib) cream, a novel cream formulation of Incyte’s JAK1/JAK2 inhibitor ruxolitinib, is the first and only treatment for repigmentation approved for use in the U.S. for the topical treatment of nonsegmental vitiligo in patients 12 years of age and older. Opzelura also is approved for use in the U.S. for the topical short-term and non-continuous chronic treatment of mild to moderate atopic dermatitis (AD) in non-immunocompromised patients 2 years of age and older whose disease is not adequately controlled with topical prescription therapies or when those therapies are not advisable. Use of Opzelura in combination with therapeutic biologics, other JAK inhibitors, or potent immunosuppressants, such as azathioprine or cyclosporine, is not recommended.
In Europe, Opzelura (ruxolitinib) cream 15mg/g is approved for the treatment of nonsegmental vitiligo with facial involvement in adults and adolescents from 12 years of age and in adult patients with moderate atopic dermatitis (AD) for whom topical corticosteroids (TCSs) and topical calcineurin inhibitors (TCIs) are inadequate or inappropriate.
Incyte has worldwide rights for the development and commercialization of Opzelura.
Monjuvi ® (tafasitamab-cxix)/Minjuvi ® (tafasitamab) is a humanized Fc-modified cytolytic CD19-targeting monoclonal antibody. Tafasitamab incorporates an XmAb ® engineered Fc domain, which mediates B-cell lysis through apoptosis and immune effector mechanisms including Antibody-Dependent Cell-Mediated Cytotoxicity (ADCC) and Antibody-Dependent Cellular Phagocytosis (ADCP). Incyte licenses exclusive worldwide rights to develop and commercialize tafasitamab from Xencor, Inc.
In the U.S., Monjuvi is approved for use in combination with lenalidomide and rituximab for the treatment of adult patients with relapsed or refractory follicular lymphoma (FL).
Monjuvi is not indicated and is not recommended for the treatment of patients with relapsed or refractory marginal zone lymphoma outside of controlled clinical trials.
Additionally, Monjuvi received approval in the U.S. in combination with lenalidomide for the treatment of adult patients with relapsed or refractory diffuse large B-cell lymphoma (DLBCL) not otherwise specified, including DLBCL arising from low grade lymphoma, and who are not eligible for autologous stem cell transplant (ASCT). This indication is approved under accelerated approval based on overall response rate. Continued approval for this indication may be contingent upon verification and description of clinical benefit in a confirmatory trial(s).
In Europe, Minjuvi (tafasitamab) received conditional marketing authorization from the European Medicines Agency in combination with lenalidomide, followed by Minjuvi monotherapy, for the treatment of adult patients with relapsed or refractory DLBCL who are not eligible for ASCT. Additionally, Minjuvi is approved for use in Europe in combination with lenalidomide and rituximab for the treatment of adult patients with relapsed or refractory FL (Grade 1-3a) after at least one line of systemic therapy. 10 In Japan, Minjuvi is approved for use in combination with rituximab and lenalidomide for the treatment of adult patients with relapsed or refractory FL (2L+ FL).
Pemazyre ® (pemigatinib) is a kinase inhibitor approved for use in the U.S. for the treatment of adults with previously treated, unresectable locally advanced or metastatic cholangiocarcinoma with a fibroblast growth factor receptor 2 (FGFR2) fusion or other rearrangement as detected by an FDA-approved test. This indication is approved under accelerated approval based on overall response rate and duration of response. Continued approval for this indication may be contingent upon verification and description of clinical benefit in one or more confirmatory trials.
Pemazyre is also the first targeted treatment approved for use in the U.S. for the treatment of adults with relapsed or refractory myeloid/lymphoid neoplasms (MLNs) with FGFR1 rearrangement.
In Japan, Pemazyre is approved for use for the treatment of patients with unresectable biliary tract cancer (BTC) with an FGFR2 fusion gene that worsens after cancer chemotherapy.
In Europe, Pemazyre is approved for use for the treatment of adults with locally advanced or metastatic cholangiocarcinoma with a FGFR2 fusion or rearrangement that has progressed after at least one prior line of systemic therapy.
Pemazyre is a potent, selective, oral inhibitor of FGFR isoforms 1, 2 and 3 that has demonstrated selective pharmacologic activity against cancer cells with FGFR alterations.
Iclusig ® (ponatinib) targets not only native BCR-ABL, an abnormal, fused gene and protein associated with several types of leukemia, most notably Chronic Myeloid Leukemia (CML) and Philadelphia-positive Acute Lymphoblastic Leukemia (Ph+ ALL), but also its isoforms that carry mutations that confer resistance to treatment, including the T315I mutation, which has been associated with resistance to other approved tyrosine kinase inhibitors.
In Europe, Iclusig is approved for use for the treatment of adult patients with chronic phase, accelerated phase or blast phase chronic myeloid leukemia (CML) who are resistant to dasatinib or nilotinib; who are intolerant to dasatinib or nilotinib and for whom subsequent treatment with imatinib is not clinically appropriate; or who have the T315I mutation, or the treatment of adult patients with Philadelphia-chromosome positive acute lymphoblastic leukemia (Ph+ ALL) who are resistant to dasatinib; who are intolerant to dasatinib and for whom subsequent treatment with imatinib is not clinically appropriate; or who have the T315I mutation.
Incyte has an exclusive license from Takeda Pharmaceuticals International AG to commercialize ponatinib in the European Union and 29 other countries, including Switzerland, the UK, Norway, Turkey, Israel and Russia. Iclusig is marketed in the U.S. by Millennium Pharmaceuticals, Inc., a wholly owned subsidiary of Takeda Pharmaceutical Company Limited.
Zynyz ® (retifanlimab-dlwr) is a humanized monoclonal antibody targeting programmed death receptor-1 (PD-1), approved for use in the U.S., Europe and Japan in combination with carboplatin and paclitaxel (platinum-based chemotherapy) for the first-line treatment of adult patients with inoperable locally recurrent or metastatic squamous cell carcinoma of the anal canal (SCAC) and in the U.S. as a single agent for the treatment of adult patients with locally recurrent or metastatic SCAC with disease progression or intolerance to platinum-based chemotherapy.
Zynyz is also approved for use as monotherapy for the first-line treatment of adult patients with metastatic or recurrent locally advanced Merkel cell carcinoma (MCC) in the U.S., Europe, Canada and Switzerland. 11 Incyte licenses exclusive worldwide rights to develop and commercialize Zynyz from MacroGenics, Inc.
Niktimvo ™ (axatilimab-csfr) is a first-in-class colony stimulating factor-1 receptor (CSF-1R)-blocking antibody approved for use in the U.S. for the treatment of chronic GVHD after failure of at least two prior lines of systemic therapy in adult and pediatric patients weighing at least 40 kg (88.2 lbs).
In September 2021, Syndax Pharmaceuticals, Inc. and Incyte entered into an exclusive worldwide co-development and co-commercialization license agreement for axatilimab in chronic GVHD and any future indications.
Axatilimab is being studied in frontline combination trials in chronic GVHD – a Phase 2 combination trial with ruxolitinib (NCT06388564) and a Phase 3 combination trial with steroids (NCT06585774) are underway.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws, including statements regarding Incyte’s expected financial and operational performance; Incyte’s updated 2026 full year financial guidance; expectations regarding the impact of Incyte’s agreement with CMS; Incyte’s ability to deliver sustained long-term growth and create long-term value for patients and shareholders; the strength and growth of Incyte’s core business and marketed products; the potential and progress of programs in Incyte’s pipeline, including their potential to provide significant future growth opportunities; expectations regarding the initiation, timing, progress and results of clinical trials and anticipated data readouts, including for INCA033989 (mutCALR), INCB161734 (KRAS G12D inhibitor), INCA33890 (TGFβR2xPD-1 bispecific), latarcibart, Niktimvo (axatilimab), INCB123667 (CDK2), Opzelura and povorcitinib; expectations regarding regulatory submissions, regulatory decisions, approvals and commercial launches, including for Monjuvi in newly diagnosed DLBCL and povorcitinib in HS; expectations regarding Incyte’s partnerships and collaborations; and Incyte’s aspirations and goals as set forth under the heading “About Incyte.”
Actual results may differ materially from those indicated in the forward-looking statements as a result of various important factors, including the sufficiency of clinical trial data to meet applicable regulatory standards or warrant continued development; the ability to enroll sufficient numbers of subjects in clinical trials and the ability to enroll subjects in accordance with planned schedules; actions of regulatory agencies, which may affect the initiation, timing and progress of clinical trials and marketing approval; the efficacy or safety of Incyte’s products; Incyte’s ability to achieve commercial success for its marketed products and product candidates, if approved; Incyte’s ability to obtain and maintain protection of intellectual property for its products and technology; Incyte’s reliance on third parties and partners; the acceptance of Incyte’s products in the marketplace; market competition, sales, marketing, manufacturing and distribution requirements; greater than expected expenses, including expenses relating to litigation or strategic activities; the effects of announced or unexpected price regulation or limitations on reimbursement or coverage for Incyte’s products; the impact of agreements or arrangements with governmental authorities relating to the pricing, reimbursement or coverage of Incyte’s products; and those risks and uncertainties discussed in greater detail in Incyte’s reports filed with the U.S. Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2025, and subsequent quarterly reports filed on Form 10-Q. Incyte disclaims any intent or obligation to update these forward-looking statements . # # #
INCA33890, a TGFβR2×PD-1 bispecific Biclonics ® antibody, is developed in collaboration with Merus (legacy partnership); Merus is now part of Genmab A/S. 13
RECONCILIATION OF GAAP NET (LOSS) INCOME TO SELECTED NON-GAAP ADJUSTED INFORMATION
1 Included within the Milestone and contract revenues line item in the Condensed Consolidated Statements of Operations (in thousands) for the three and nine months ended September 30, 2026 are milestones of $49,800 and $78,000, respectively, earned from our collaborative partners, as compared to $45,000 and $50,000 of milestones earned for the three and nine months ended September 30, 2025. Included within the Research and development expenses line item in the Condensed Consolidated Statements of Operations (in thousands) for the three and nine months ended September 30, 2026 are upfront consideration and milestones of $1,237,300 and $1,249,900, respectively, related to our Vega acquisition and collaborative partners as compared to upfront consideration and milestones of $100 and $28,150, respectively, for the three and nine months ended September 30, 2025.
2 As included within the Cost of sales (including definite-lived intangible amortization) line item; the Research and development expenses line item; and the Selling, general and administrative expenses line item in the Condensed Consolidated Statements of Operations.
3 As included within the Interest expense line item in the Condensed Consolidated Statements of Operations.
4 As included within the Loss (gain) on equity investments line item in the Condensed Consolidated Statements of Operations.
5 As included within the Cost of sales (including definite-lived intangible amortization) line item in the Condensed Consolidated Statements of Operations. Acquired product rights of licensed intellectual property for Iclusig is amortized utilizing a straight-line method over the estimated useful life of 12.5 years.
6 As included within the Loss (gain) on change in fair value of acquisition- related contingent consideration line item in the Condensed Consolidated Statements of Operations.
7 As included within the Asset impairment and related disposal costs line item in the Condensed Consolidated Statements of Operations.
8 Included within the Research and development line item in the Condensed Consolidated Statements of Operations (in thousands) is $0 and $2,117 for the three and nine months ended September 30, 2025, respectively, and included within the Selling, general and administrative expenses line item in the Condensed Consolidated Statements of Operations is $0 and $180 for the three and nine months ended September 30, 2025, respectively. Escient acquisition related compensation expense represents non-recurring charges associated with severance payments to former Escient employees.
9 Included within the Research and development line item in the Condensed Consolidated Statements of Operations (in thousands) is $2,571 for both the three and nine months ended September 30, 2026. Vega transition costs primarily represent employee related costs to transition research and development activities to us as part of the Vega acquisition, as well as retention payments to former Vega employees.
10 Income tax effects of Non-GAAP pre-tax adjustments are calculated using an estimated annual effective tax rate, taking into consideration any permanent items and valuation allowances against related deferred tax assets. 16
Full text with the tables
Exhibit 99.1
FOR IMMEDIATE RELEASE
Incyte Reports Third Quarter 2026 Financial Results and Provides Business
Updates
Total revenue of $1.56 billion and total net sales of $1.32 billion in the third
quarter of 2026, each an increase of 14% compared to the third quarter of 2025
Jakafi ® /Jakafi XR ™ (ruxolitinib) net sales of $827 million, an increase of 4%
compared to the same period in 2025
Continued growth in core business (ex-Jakafi), with Opzelura ® (ruxolitinib)
cream net sales of $255 million and Hematology and Oncology net sales of $235
million, an increase of 36% and 38%, respectively, versus the prior year period
Raising 2026 full year financial guidance for Opzelura net sales, Hematology and
Oncology net sales and total net sales
Phase 1 data for INCB161734 and INCA033890 support an expanding GI Oncology
development strategy, including multiple ongoing and planned registrational
studies in 2027
Advancing multiple registrational programs in Hematology, with Phase 3 studies
underway or planned for INCA033989 in essential thrombocythemia (ET) and
myelofibrosis (MF), and latarcibart in von Willebrand disease (VWD)
Phase 3 data expected by year-end for povorcitinib in prurigo nodularis (PN) and
ruxolitinib cream in hidradenitis suppurativa (HS)
Conference Call and Webcast Scheduled Today at 8:00 a.m. ET
WILMINGTON, Del. – October 29, 2026
– Incyte (Nasdaq:INCY) today reported financial results for the third quarter of
2026 and provided a business update.
“Our third quarter was marked by strong commercial performance, meaningful
pipeline progress and important regulatory achievements,” said Bill Meury, Chief
Executive Officer, Incyte. “Net sales growth was strong in both the U.S. and
internationally, creating a durable core business beyond Jakafi. At the same
time, we are advancing a pipeline led by a CALR-targeted monoclonal antibody for
myeloproliferative neoplasms, a novel Protein S modulator for von Willebrand
disease, a KRAS G12D inhibitor for pancreatic and colorectal cancers and a
TGFβR2×PD-1 bispecific antibody for colorectal cancer. Each represents a
significant opportunity for Incyte, and together they give us multiple paths to
growth beyond 2029. With important clinical, regulatory and commercial catalysts
ahead, we are well positioned to create long-term value for patients and
shareholders.”
Third Quarter 2026 Results
• Total revenue: Total revenue was $1.56 billion, an increase of 14% compared to
the third quarter of 2025, primarily driven by an increase in total net sales
across marketed products.
• Total net sales: Total net sales were $1.32 billion, an increase of 14%
compared to the third quarter of 2025, driven by increased demand across
marketed products.
◦ Jakafi ® /Jakafi XR ™ (ruxolitinib) net sales of $827 million, an increase of
4% compared to the same period in 2025.
◦ Opzelura ® (ruxolitinib) cream net sales of $255 million, an increase of 36%
versus the prior year period.
◦ Hematology and Oncology portfolio net sales of $235 million, an increase of
38% compared to the third quarter of 2025.
• Cost of sales: GAAP and non-GAAP cost of sales were $108.7 million and $102.2
million, respectively, representing 8% of total net sales.
1
• Research and development (R&D) expenses: GAAP and non-GAAP R&D expenses were
$1.79 billion and $1.75 billion, an increase of 254% and 274%, respectively,
compared to the prior year period, primarily driven by a one-time $1.23 billion
IPR&D expense related to the acquisition of Vega Therapeutics. Excluding the
Vega IPR&D expense, GAAP research and development expenses increased 11% as
compared to the same period in 2025 primarily driven by late-stage development
efforts.
• Selling, general and administrative (SG&A) expenses: GAAP and non-GAAP SG&A
expenses were $364.3 million and $339.1 million, an increase of 11% and 10%,
respectively, compared to the prior year period.
• Cash, cash equivalents and marketable securities position: As of September 30,
2026 and December 31, 2025, cash, cash equivalents and marketable securities
totaled $3.9 billion and $3.6 billion, respectively.
2026 Financial Guidance
Incyte is raising its full year 2026 net sales guidance for Opzelura to $1,100 -
$1,120 million, Hematology and Oncology to $890 - $910 million and total net
sales to $5,210 - $5,300 million to reflect continued strong performance across
the portfolio. Incyte is reaffirming its full year 2026 guidance for all other
categories.
Incyte’s guidance for the fiscal year 2026 is summarized below.
Current Previous
Total net sales $5,210 - $5,300 million $5,130 - $5,260 million
Jakafi net sales(1) Unchanged $3,220 - $3,270 million
Opzelura net sales(2) $1,100 - $1,120 million $1,050 - $1,100 million
Hematology and $890 - $910 million $860 - $890 million
Oncology net sales(3)
Total GAAP R&D and
SG&A operating Unchanged $4,915 - $4,995 million
expenses(4)
Total Non-GAAP R&D and
SG&A operating Unchanged $4,625 - $4,695 million
expenses(4,5)
1 Includes Jakafi and Jakafi XR ™ (ruxolitinib) net sales.
2 Includes a one-time $246 million benefit related to our agreement with CMS to
resolve our litigation related to the application of Medicaid rebate rules to
Opzelura.
3 Includes Pemazyre ® (pemigatinib) in the U.S., Canada, Europe, Japan, Asia
Pacific (APAC), Middle East and Africa (MEA), and Latin America (LatAm);
Niktimvo ™ (axatilimab-csfr) and Monjuvi ® (tafasitamab-cxix) in the U.S.; Zynyz
® (retifanlimab-dlwr) in the U.S., Europe and Japan; Iclusig ® (ponatinib) in
Europe and MEA; and Minjuvi ® (tafasitamab) in Canada, Europe, Japan, APAC, MEA
and LatAm.
4 Includes upfront cost related to the acquisition of Vega Therapeutics, which
was recognized as a $1.23 billion IPR&D expense in the third quarter of 2026.
5 Adjusted to exclude the estimated cost of stock-based compensation.
Key Business Updates
Hematology
INCA033989 (mutCALR)
• A Phase 3 study (EXCALIBUR-MF2) is expected to initiate by year end 2026,
following positive End-of-Phase 2 interactions with the U.S. Food and Drug
Administration (FDA) in the third quarter. The trial will evaluate INCA033989
versus best available therapy (BAT) in patients with CALR-mutated myelofibrosis
(MF) who were previously treated with a JAK inhibitor.
• The registrational Phase 3 study (EXCALIBUR-ET2), evaluating INCA033989 in
mutCALR positive patients with essential thrombocythemia (ET) who are resistant
or intolerant to at least one prior cytoreductive therapy was initiated in
mid-2026.
• Data from the Phase 1 cohort evaluating INCA033989 as a monotherapy and in
combination with ruxolitinib in treatment naïve patients with MF are anticipated
in the fourth quarter of 2026.
Latarcibart (formerly VGA039)
• The Phase 3 study (VIVID-6) evaluating once-monthly subcutaneous (SC)
administration of latarcibart as bleeding prophylaxis in patients with all types
of von Willebrand disease (VWD) is ongoing. Topline data from the VIVID-6 study
are anticipated in early 2029.
2
Monjuvi/Minjuvi
• Global regulatory submissions for Monjuvi/Minjuvi as a treatment for patients
with newly diagnosed diffuse large B-cell lymphoma (DLBCL) are under regulatory
review. The Company anticipates a potential approval and launch in the U.S. in
the first quarter of 2027.
Niktimvo
• Results from the Phase 2 trial evaluating axatilimab in combination with
ruxolitinib in patients with newly diagnosed chronic graft-versus-host disease
(GVHD) are expected to be presented at a medical meeting in the first quarter of
2027.
Oncology
INCB161734 (KRAS G12D)
• Data from the ongoing Phase 1 trial presented at the 2026 European Society for
Medical Oncology (ESMO) Congress demonstrated high response rates and early
evidence of durable clinical benefit with INCB161734 in combination with
standard-of-care chemotherapy (mFOLFIRINOX or GEMNabP) as a first-line treatment
in patients with metastatic pancreatic ductal adenocarcinoma (PDAC), further
supporting its potential as a first-line treatment option.
• A Phase 3 study (DAWN-303) evaluating INCB161734 in combination with standard-
of-care chemotherapy versus chemotherapy alone as a first-line treatment in
patients with metastatic PDAC is ongoing, with topline data anticipated in 2028.
• A Phase 3 study evaluating INCB161734 as adjuvant therapy following surgical
resection in patients with PDAC is expected to initiate in 2027.
• Data from the ongoing Phase 1 trial presented at ESMO demonstrated notable
antitumor activity with INCB161734, both as monotherapy and in combination with
cetuximab, in heavily pretreated metastatic colorectal cancer (CRC) patients,
supporting further development in this patient population.
• A Phase 3 study (DAWN-302) evaluating INCB161734 in combination with cetuximab
in patients with previously treated CRC is expected to initiate in the first
half of 2027.
INCA33890 (TGFβR2xPD-1)
†
• Data from the ongoing Phase 1 trial presented at the 2026 ESMO Congress
demonstrated encouraging clinical activity and a manageable safety profile of
INCA33890 in combination with standard-of-care (SoC) chemotherapy and
bevacizumab as a first-line treatment in patients with microsatellite-stable
colorectal cancer (MSS CRC), supporting the ongoing Phase 3 study (NEXERA-303)
and expansion of the program into earlier-stage disease.
• A Phase 3 study (NEXERA-303) evaluating INCA33890 in combination with SoC
chemotherapy and bevacizumab as a first-line treatment in patients with MSS CRC
is ongoing, with topline data anticipated in 2029.
• In October, a Phase 2 study (NEXERA-204) evaluating INCA33890 for the
treatment of patients with circulating tumor DNA-positive stage II/III MSS CRC
after curative resection and chemotherapy, was initiated.
INCB123667 (CDK2)
• As part of a strategic shift in focus toward the first-line maintenance
ovarian cancer setting, enrollment in the Phase 3 study (MAESTRA-2) evaluating
INCB123667 in patients with platinum-resistant ovarian cancer (PROC) was
discontinued.
• A Phase 3 study (MAESTRA-3) evaluating INCB123667 in combination with
bevacizumab as first-line maintenance therapy in patients with ovarian cancer is
expected to initiate in the fourth quarter of 2026.
• Preliminary efficacy data from the ongoing Phase 1 trial evaluating INCB123667
in combination with bevacizumab in patients with recurrent epithelial ovarian
cancer (rEOC) were presented as a rapid oral presentation at the 2026 ESMO
Congress.
3
Inflammation and Autoimmunity (IAI)
Opzelura
• In July, the European Commission (EC) approved Opzelura for the treatment of
moderate atopic dermatitis (AD) in adult patients for whom topical
corticosteroids (TCSs) and topical calcineurin inhibitors (TCIs) are inadequate
or inappropriate. Opzelura is the first steroid-free topical JAK inhibitor
approved in the European Union (EU) for adults with moderate AD. This approval
represents Opzelura’s second approved indication in the EU.
• Topline results from the Phase 3 studies (TRuE-HS1 and TRuE-HS2) evaluating
ruxolitinib cream in patients with mild to moderate hidradenitis suppurativa
(HS) are anticipated in the fourth quarter of 2026.
Povorcitinib
• In September, the Committee for Medicinal Products for Human Use (CHMP) issued
a positive opinion recommending the approval of povorcitinib (Povofortay ® ) for
the treatment of active moderate to severe HS in adults who have responded
inadequately to, or who are intolerant or contraindicated to, an anti-TNF
therapy. A regulatory decision from the EC is anticipated in the fourth quarter
of 2026.
• The New Drug Application (NDA) for povorcitinib as a treatment for patients
with moderate to severe HS is under regulatory review and the Company
anticipates a potential U.S. approval and launch in the first quarter of 2027.
• Data from the Phase 3 studies (STOP-PN1 and STOP-PN2) evaluating povorcitinib
in patients with moderate to severe prurigo nodularis (PN) are anticipated in
the fourth quarter of 2026.
• Topline data from the Phase 2 proof-of-concept trial for povorcitinib in
patients with asthma are anticipated by year-end 2026.
Corporate Updates
• In July, the Company completed its acquisition of Vega Therapeutics, Inc., a
wholly owned subsidiary of Star Therapeutics, LLC. The acquisition added
latarcibart, a novel investigational monoclonal antibody in Phase 3 development
for patients with VWD, to Incyte’s late-stage pipeline. Under the terms of the
parties’ stock purchase agreement, Incyte acquired all outstanding shares of
Vega Therapeutics for $1.25 billion. Star Therapeutics will be eligible to
receive up to $750 million in additional payments upon the achievement of sales
milestones.
• In August, the Company entered into an agreement with the U.S. Centers for
Medicare & Medicaid Services (CMS) intended to improve access to medicines for
American patients while supporting continued U.S. biopharmaceutical innovation.
Under the agreement, the Company will enable state Medicaid programs to access
Jakafi and Jakafi XR at prices aligned with those in a defined group of other
advanced, industrialized nations. Additionally, the Company expects that it will
not be subject to certain future CMS pricing mandates, including the proposed
GUARD and GLOBE models.
2026 Third Quarter Financial Results
The financial measures presented in this press release for the three and nine
months ended September 30, 2026 and 2025 have been prepared by the Company in
accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), unless
otherwise identified as a Non-GAAP financial measure. Management believes that
Non-GAAP information is useful for investors, when considered in conjunction
with Incyte’s GAAP disclosures. Management uses such information internally and
externally for establishing budgets, operating goals and financial planning
purposes. These metrics are also used to manage the Company’s business and
monitor performance. The Company adjusts, where appropriate, for expenses in
order to reflect the Company’s core operations. The Company believes these
adjustments are useful to investors by providing an enhanced understanding of
the financial performance of the Company’s core operations. The metrics have
been adopted to align the Company with disclosures provided by industry peers.
Non-GAAP information is not prepared under a comprehensive set of accounting
rules and should only be used in conjunction with and to supplement Incyte’s
operating results as reported under GAAP. Non-GAAP measures may be defined and
calculated differently by other companies in our industry.
4
As changes in exchange rates are an important factor in understanding period-to-
period comparisons, management believes the presentation of certain revenue
results on a constant currency basis in addition to reported results helps
improve investors’ ability to understand the Company’s operating results and
evaluate its performance in comparison to prior periods. Constant currency
information compares results between periods as if exchange rates had remained
constant period over period. The Company calculates constant currency by
calculating current year results using prior year foreign currency exchange
rates and generally refers to such amounts calculated on a constant currency
basis as excluding the impact of foreign exchange or being on a constant
currency basis. These results should be considered in addition to, not as a
substitute for, results reported in accordance with GAAP. Results on a constant
currency basis, as the Company presents them, may not be comparable to similarly
titled measures used by other companies and are not measures of performance
presented in accordance with GAAP.
Financial Highlights
Financial Highlights
(unaudited, in thousands, except per share amounts)
Three Nine
Months Months
Ended Ended
Septem… Septem…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Total
GAAP $ 1,557,… $ 1,365,9… $ 4,503,… $ 3,634,4…
reven…
Total
GAAP
opera… -708,3… 443,518 290,654 1,179,0…
(loss)
income
Total
Non-G…
opera… -629,7… 498,296 536,996 1,164,5…
(loss)
income
GAAP
net -784,8… 424,169 104,132 987,371
(loss)
income
Non-G…
net -730,8… 455,972 286,983 997,358
(loss)
income
GAAP
basic $ -3.86 $ 2.17 $ 0.52 $ 5.08
EPS
Non-G…
basic $ -3.60 $ 2.33 $ 1.43 $ 5.13
EPS
GAAP
dilut… $ -3.86 $ 2.11 $ 0.50 $ 4.95
EPS1
Non-G…
dilut… $ -3.60 $ 2.26 $ 1.37 $ 5.00
EPS1
1. All stock options and stock awards were excluded from the diluted share
calculation for the three months ended September 30, 2026 because their effect
would have been anti-dilutive, as we were in a net loss position.
5
Revenue Details
Revenue Details
(unaudited, in thousands)
…
… % % …
… … … … % %
… … … … … …
… … … … … …
… … … … … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … 4 % … $ … $ … 6 % …
… … … % … % … … … % … %
… … … … … … … … 4 % … …
… … … … … … … … 6 % 5 %
… … … % … % … … … % … %
… … … % … % … … … % … %
… … … % … % … … … % … %
… … … % … % … … … % … %
… … 5 % 6 % … … … % 7 %
… … 5 % 8 % … … … % … %
… … 5 % … … … … … …
… … … % … … … … % …
… … … % … … … %
… … … % … … … %
… … … % … % … … … % … %
$ … $ … … % $ … $ … … %
NA = not applicable
1 Percentage change in constant currency is calculated using 2025 foreign
exchange rates to recalculate 2026 results.
2 2026 Jakafi net sales include Jakafi and Jakafi XR following the launch of
Jakafi XR in the second quarter of 2026.
3 Opzelura net sales for the nine months ended September 30, 2026 include $246.0
million related to our agreement with CMS to resolve our litigation related to
the application of Medicaid rebate rules to Opzelura.
Net Sales and Royalty Revenues
Total net sales and royalty revenue for the quarter ended September 30, 2026
increased 14% over the prior year comparable period.
• Total net sales for the quarter ended September 30, 2026 increased 14% over
the prior year comparable period.
• Jakafi net sales increased 4% in the third quarter of 2026 versus the prior
year comparable period to $827 million, primarily driven by a 12% increase in
paid demand and growth across all indications. Jakafi inventory levels were
within normal range at the end of the third quarter of 2026.
• Opzelura net sales increased 36% in the third quarter of 2026 versus the prior
year comparable period to $255 million. Net growth was driven by increased
patient demand in both AD and vitiligo and improvements in net pricing resulting
from the Opzelura line extension settlement in the second quarter. Opzelura
inventory levels were within normal range at the end of the third quarter of
2026.
• Hematology and oncology net sales increased 38% in the third quarter of 2026
versus the prior year comparable period to $235 million, driven by increased
demand for Niktimvo, Zynyz and Monjuvi/Minjuvi.
6
Operating Expenses
Reconciliation of Reported to Adjusted Results
(unaudited, in thousands)
Th…
Mo…
En…
Se…
30,
20…
──────────────────────────────────────────────────────────────────────────────
Co… Re… Se… Op… Net
of and Ge… (L… (Lo…
Sa… De… and In… Inc…
Ad…
G…
(… $ 10… $ 1,… $ 36… $ -7… $ -7…
r…
A…
-
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(…
N…
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c… -1… -4… -2… 69… 69…
f…
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p…
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on
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a…
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N… — — — — 82
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(… $ 10… $ 1,… $ 33… $ -6… $ -7…
a…
Th…
Mo…
En…
Se…
30,
20…
──────────────────────────────────────────────────────────────────────────────
Co… Re… Se…
of and Ge… Op… Net
Sa… De… and In… Inc…
Ad…
G…
(… $ 99… $ 50… $ 32… $ 44… $ 42…
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7
Ni…
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30,
20…
──────────────────────────────────────────────────────────────────────────────
Co… Re… Se…
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(… $ 31… $ 2,… $ 1,… $ 29… $ 104…
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(… $ 29… $ 2,… $ 96… $ 53… $ 286…
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30,
20…
──────────────────────────────────────────────────────────────────────────────
Co… Re… Se…
of and Ge… Op… Net
Sa… De… and In… In…
Ad…
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(… $ 25… $ 1,… $ 98… $ 1,… $ 987…
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a…
1 Non-GAAP cost of sales excludes the amortization of licensed intellectual
property for Iclusig relating to the acquisition of the European business of
ARIAD Pharmaceuticals, Inc. and the cost of stock-based compensation.
2 Non-GAAP research and development expenses exclude the cost of stock-based
compensation, Escient acquisition related compensation expense related to
severance payments, and Vega transition costs primarily representing employee
related costs to transition research and development activities to us as part of
the Vega acquisition, as well as retention payments to former Vega employees.
3 Non-GAAP selling, general and administrative expenses exclude the cost of
stock-based compensation and Escient acquisition related compensation expense
related to severance payments.
Cost of sales
GAAP and Non-GAAP cost of sales for the quarter ended September 30, 2026 were
$108.7 million and $102.2 million, respectively, representing 8% of total net
sales.
8
Contract dispute settlement
In May 2025, Incyte and Novartis entered into a settlement agreement with
respect to litigation relating to the duration of royalty payments owed under
the Collaboration and License Agreement between Incyte and Novartis. Under the
settlement agreement, the royalty rate payable by Incyte on future net sales of
Jakafi in the United States is reduced by 50% beginning January 1, 2025 and
Incyte paid Novartis $280.0 million as the settlement of disputed royalties on
net sales of Jakafi in the United States through December 31, 2024. The
difference of $242.2 million between the accrued royalties and the total amount
paid by us to Novartis was recorded in contract dispute settlement on the
condensed consolidated statement of operations for the nine months ended
September 30, 2025.
Research and development expenses
GAAP and Non-GAAP research and development expenses for the quarter ended
September 30, 2026 were $1.79 billion and $1.75 billion, an increase of 254% and
274%, respectively, compared to the same period in 2025, primarily driven by the
upfront consideration associated with the Vega acquisition, increased investment
in latarcibart and continued advancement of our late stage development
portfolio. Excluding the Vega acquisition upfront consideration, GAAP research
and development expenses increased 11% as compared to the same period in 2025,
primarily reflecting increased investment in our late stage development assets.
Selling, general and administrative expenses
GAAP and Non-GAAP selling, general and administrative expenses for the quarter
ended September 30, 2026 were $364.3 million and $339.1 million, an increase of
11% and 10%, respectively, compared to the same period in 2025, primarily due to
pre-launch activities.
Other Financial Information
Change in fair value of acquisition-related contingent consideration The change
in fair value of contingent consideration during the quarter ended September 30,
2026, compared to the same period in 2025, was primarily due to updated
projections of future net sales of Iclusig, including the impacts from
fluctuations in foreign currency exchange rates.
Operating income
GAAP and Non-GAAP operating income for the quarter ended September 30, 2026
decreased 260% and 226%, respectively, compared to the same period in 2025,
driven primarily by the impact of the Vega acquisition, offset partially by
growth in total revenue. Excluding the Vega acquisition upfront consideration,
GAAP operating income increased 18% primarily driven by growth in total revenue.
Cash, cash equivalents and marketable securities position Cash, cash equivalents
and marketable securities as of September 30, 2026, were $3.9 billion, compared
to $3.6 billion as of December 31, 2025.
Conference Call and Webcast Information
Incyte will hold a conference call and webcast this morning at 8:00 a.m. ET. To
access the conference call, please dial 877-407-3042 for domestic callers or
201-389-0864 for international callers. When prompted, provide the conference
identification number, 13763051.
If you are unable to participate, a replay of the conference call will be
available for 90 days. The replay dial-in number for the United States is
877-660-6853 and the dial-in number for international callers is 201-612-7415.
To access the replay you will need the conference identification number,
13763051.
The conference call will also be webcast live and can be accessed at
investor.incyte.com.
About Incyte
®
Incyte is redefining what’s possible in biopharmaceutical innovation. Through
deep scientific expertise and a relentless focus on patients, we have built an
established portfolio of first-in-class medicines and an extensive portfolio of
next-generation medicines across our key franchises: Hematology, Oncology and
Inflammation and Autoimmunity.
To learn more, visit Incyte.com and Investor.Incyte.com. Follow us on social
media: LinkedIn , X and Instagram .
Incyte is a registered trademark of Incyte.
About Jakafi
®
(ruxolitinib)
Jakafi ® (ruxolitinib) is a JAK1/JAK2 inhibitor approved for use in the U.S. for
the treatment of polycythemia vera (PV) in adults who have had an inadequate
response to, or are intolerant of, hydroxyurea; intermediate or high-risk
myelofibrosis (MF), including primary MF, post-PV MF and post-essential
thrombocythemia MF in adults; steroid-refractory acute graft-
9
versus-host disease (GVHD) in adult and pediatric patients 12 years and older;
and chronic GVHD after failure of one or two lines of systemic therapy in adult
and pediatric patients 12 years and older.
Jakafi is a registered trademark of Incyte.
About Jakafi XR
™
(ruxolitinib) Extended-Release Tablets
Jakafi XR ™ (ruxolitinib) extended-release tablets are a once-daily (QD)
formulation of ruxolitinib, approved for use in the U.S. for the treatment of PV
in adults who have had an inadequate response to, or are intolerant of,
hydroxyurea; intermediate or high-risk MF, including primary MF, post-PV MF, and
post-essential thrombocythemia MF in adults; steroid-refractory acute GVHD in
adult and pediatric patients 12 years and older; and chronic GVHD after failure
of one or two lines of systemic therapy in adult and pediatric patients 12 years
and older.
It is not known if Jakafi XR is safe or effective in children for the treatment
of MF or PV.
Jakafi XR and the Jakafi XR logo are trademarks of Incyte.
About Opzelura
®
(ruxolitinib) Cream
Opzelura ® (ruxolitinib) cream, a novel cream formulation of Incyte’s JAK1/JAK2
inhibitor ruxolitinib, is the first and only treatment for repigmentation
approved for use in the U.S. for the topical treatment of nonsegmental vitiligo
in patients 12 years of age and older. Opzelura also is approved for use in the
U.S. for the topical short-term and non-continuous chronic treatment of mild to
moderate atopic dermatitis (AD) in non-immunocompromised patients 2 years of age
and older whose disease is not adequately controlled with topical prescription
therapies or when those therapies are not advisable. Use of Opzelura in
combination with therapeutic biologics, other JAK inhibitors, or potent
immunosuppressants, such as azathioprine or cyclosporine, is not recommended.
In Europe, Opzelura (ruxolitinib) cream 15mg/g is approved for the treatment of
nonsegmental vitiligo with facial involvement in adults and adolescents from 12
years of age and in adult patients with moderate atopic dermatitis (AD) for whom
topical corticosteroids (TCSs) and topical calcineurin inhibitors (TCIs) are
inadequate or inappropriate.
Incyte has worldwide rights for the development and commercialization of
Opzelura.
Opzelura is a registered trademark of Incyte
.
About Monjuvi
®
(tafasitamab-cxix)/Minjuvi
®
(tafasitamab)
Monjuvi ® (tafasitamab-cxix)/Minjuvi ® (tafasitamab) is a humanized Fc-modified
cytolytic CD19-targeting monoclonal antibody. Tafasitamab incorporates an XmAb ®
engineered Fc domain, which mediates B-cell lysis through apoptosis and immune
effector mechanisms including Antibody-Dependent Cell-Mediated Cytotoxicity
(ADCC) and Antibody-Dependent Cellular Phagocytosis (ADCP). Incyte licenses
exclusive worldwide rights to develop and commercialize tafasitamab from Xencor,
Inc.
In the U.S., Monjuvi is approved for use in combination with lenalidomide and
rituximab for the treatment of adult patients with relapsed or refractory
follicular lymphoma (FL).
Monjuvi is not indicated and is not recommended for the treatment of patients
with relapsed or refractory marginal zone lymphoma outside of controlled
clinical trials.
Additionally, Monjuvi received approval in the U.S. in combination with
lenalidomide for the treatment of adult patients with relapsed or refractory
diffuse large B-cell lymphoma (DLBCL) not otherwise specified, including DLBCL
arising from low grade lymphoma, and who are not eligible for autologous stem
cell transplant (ASCT). This indication is approved under accelerated approval
based on overall response rate. Continued approval for this indication may be
contingent upon verification and description of clinical benefit in a
confirmatory trial(s).
In Europe, Minjuvi (tafasitamab) received conditional marketing authorization
from the European Medicines Agency in combination with lenalidomide, followed by
Minjuvi monotherapy, for the treatment of adult patients with relapsed or
refractory DLBCL who are not eligible for ASCT. Additionally, Minjuvi is
approved for use in Europe in combination with lenalidomide and rituximab for
the treatment of adult patients with relapsed or refractory FL (Grade 1-3a)
after at least one line of systemic therapy.
10
In Japan, Minjuvi is approved for use in combination with rituximab and
lenalidomide for the treatment of adult patients with relapsed or refractory FL
(2L+ FL).
XmAb is a registered trademark of Xencor, Inc.
Monjuvi and Minjuvi are registered trademarks of Incyte.
About Pemazyre
®
(pemigatinib)
Pemazyre ® (pemigatinib) is a kinase inhibitor approved for use in the U.S. for
the treatment of adults with previously treated, unresectable locally advanced
or metastatic cholangiocarcinoma with a fibroblast growth factor receptor 2
(FGFR2) fusion or other rearrangement as detected by an FDA-approved test. This
indication is approved under accelerated approval based on overall response rate
and duration of response. Continued approval for this indication may be
contingent upon verification and description of clinical benefit in one or more
confirmatory trials.
Pemazyre is also the first targeted treatment approved for use in the U.S. for
the treatment of adults with relapsed or refractory myeloid/lymphoid neoplasms
(MLNs) with FGFR1 rearrangement.
In Japan, Pemazyre is approved for use for the treatment of patients with
unresectable biliary tract cancer (BTC) with an FGFR2 fusion gene that worsens
after cancer chemotherapy.
In Europe, Pemazyre is approved for use for the treatment of adults with locally
advanced or metastatic cholangiocarcinoma with a FGFR2 fusion or rearrangement
that has progressed after at least one prior line of systemic therapy.
Pemazyre is a potent, selective, oral inhibitor of FGFR isoforms 1, 2 and 3 that
has demonstrated selective pharmacologic activity against cancer cells with FGFR
alterations.
Pemazyre is marketed by Incyte in the United States, Europe and Japan.
Pemazyre is a trademark of Incyte.
About Iclusig
®
(ponatinib) tablets
Iclusig ® (ponatinib) targets not only native BCR-ABL, an abnormal, fused gene
and protein associated with several types of leukemia, most notably Chronic
Myeloid Leukemia (CML) and Philadelphia-positive Acute Lymphoblastic Leukemia
(Ph+ ALL), but also its isoforms that carry mutations that confer resistance to
treatment, including the T315I mutation, which has been associated with
resistance to other approved tyrosine kinase inhibitors.
In Europe, Iclusig is approved for use for the treatment of adult patients with
chronic phase, accelerated phase or blast phase chronic myeloid leukemia (CML)
who are resistant to dasatinib or nilotinib; who are intolerant to dasatinib or
nilotinib and for whom subsequent treatment with imatinib is not clinically
appropriate; or who have the T315I mutation, or the treatment of adult patients
with Philadelphia-chromosome positive acute lymphoblastic leukemia (Ph+ ALL) who
are resistant to dasatinib; who are intolerant to dasatinib and for whom
subsequent treatment with imatinib is not clinically appropriate; or who have
the T315I mutation.
Incyte has an exclusive license from Takeda Pharmaceuticals International AG to
commercialize ponatinib in the European Union and 29 other countries, including
Switzerland, the UK, Norway, Turkey, Israel and Russia. Iclusig is marketed in
the U.S. by Millennium Pharmaceuticals, Inc., a wholly owned subsidiary of
Takeda Pharmaceutical Company Limited.
About Zynyz
®
(retifanlimab-dlwr)
Zynyz ® (retifanlimab-dlwr) is a humanized monoclonal antibody targeting
programmed death receptor-1 (PD-1), approved for use in the U.S., Europe and
Japan in combination with carboplatin and paclitaxel (platinum-based
chemotherapy) for the first-line treatment of adult patients with inoperable
locally recurrent or metastatic squamous cell carcinoma of the anal canal (SCAC)
and in the U.S. as a single agent for the treatment of adult patients with
locally recurrent or metastatic SCAC with disease progression or intolerance to
platinum-based chemotherapy.
Zynyz is also approved for use as monotherapy for the first-line treatment of
adult patients with metastatic or recurrent locally advanced Merkel cell
carcinoma (MCC) in the U.S., Europe, Canada and Switzerland.
11
Incyte licenses exclusive worldwide rights to develop and commercialize Zynyz
from MacroGenics, Inc.
Zynyz is a registered trademark of Incyte.
About Niktimvo
™
(axatilimab-csfr)
Niktimvo ™ (axatilimab-csfr) is a first-in-class colony stimulating factor-1
receptor (CSF-1R)-blocking antibody approved for use in the U.S. for the
treatment of chronic GVHD after failure of at least two prior lines of systemic
therapy in adult and pediatric patients weighing at least 40 kg (88.2 lbs).
In September 2021, Syndax Pharmaceuticals, Inc. and Incyte entered into an
exclusive worldwide co-development and co-commercialization license agreement
for axatilimab in chronic GVHD and any future indications.
Axatilimab is being studied in frontline combination trials in chronic GVHD – a
Phase 2 combination trial with ruxolitinib (NCT06388564) and a Phase 3
combination trial with steroids (NCT06585774) are underway.
Niktimvo is a trademark of Incyte.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 and other federal securities
laws, including statements regarding Incyte’s expected financial and operational
performance; Incyte’s updated 2026 full year financial guidance; expectations
regarding the impact of Incyte’s agreement with CMS; Incyte’s ability to deliver
sustained long-term growth and create long-term value for patients and
shareholders; the strength and growth of Incyte’s core business and marketed
products; the potential and progress of programs in Incyte’s pipeline, including
their potential to provide significant future growth opportunities; expectations
regarding the initiation, timing, progress and results of clinical trials and
anticipated data readouts, including for INCA033989 (mutCALR), INCB161734 (KRAS
G12D inhibitor), INCA33890 (TGFβR2xPD-1 bispecific), latarcibart, Niktimvo
(axatilimab), INCB123667 (CDK2), Opzelura and povorcitinib; expectations
regarding regulatory submissions, regulatory decisions, approvals and commercial
launches, including for Monjuvi in newly diagnosed DLBCL and povorcitinib in HS;
expectations regarding Incyte’s partnerships and collaborations; and Incyte’s
aspirations and goals as set forth under the heading “About Incyte.”
Actual results may differ materially from those indicated in the forward-looking
statements as a result of various important factors, including the sufficiency
of clinical trial data to meet applicable regulatory standards or warrant
continued development; the ability to enroll sufficient numbers of subjects in
clinical trials and the ability to enroll subjects in accordance with planned
schedules; actions of regulatory agencies, which may affect the initiation,
timing and progress of clinical trials and marketing approval; the efficacy or
safety of Incyte’s products; Incyte’s ability to achieve commercial success for
its marketed products and product candidates, if approved; Incyte’s ability to
obtain and maintain protection of intellectual property for its products and
technology; Incyte’s reliance on third parties and partners; the acceptance of
Incyte’s products in the marketplace; market competition, sales, marketing,
manufacturing and distribution requirements; greater than expected expenses,
including expenses relating to litigation or strategic activities; the effects
of announced or unexpected price regulation or limitations on reimbursement or
coverage for Incyte’s products; the impact of agreements or arrangements with
governmental authorities relating to the pricing, reimbursement or coverage of
Incyte’s products; and those risks and uncertainties discussed in greater detail
in Incyte’s reports filed with the U.S. Securities and Exchange Commission,
including its annual report on Form 10-K for the year ended December 31, 2025,
and subsequent quarterly reports filed on Form 10-Q. Incyte disclaims any intent
or obligation to update these forward-looking statements .
# # #
Contacts
Media Investors
media@incyte.com ir@incyte.com
__________________
12
†
INCA33890, a TGFβR2×PD-1 bispecific Biclonics ® antibody, is developed in
collaboration with Merus (legacy partnership); Merus is now part of Genmab A/S.
13
INCYTE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share amounts)
Three Nine
Months Months
Ended Ended
Septem… Septe…
30, 30,
2026 2026
Reve… GAAP 2025 GAAP 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 1,316… $ 1,149,… $ 3,909,… $ 3,131…
sales
Prod…
roya… 190,9… 171,124 516,873 452,8…
reve…
Mile…
and 49,800 45,000 78,000 50,000
cont…
reve…
Total 1,557… 1,365,… 4,503,… 3,634…
reve…
Cost…
expe…
and
othe…
Cost
of
sales
(inc… 108,7… 99,001 318,224 250,9…
defi…
inta…
amor…
Cont…
disp… — — — -242,…
sett…
Rese…
and 1,791… 506,584 2,824,… 1,438…
deve…
Sell…
gene… 364,2… 329,081 1,044,… 985,7…
and
admi…
Asset
impa…
and — — 23,214 —
rela…
disp…
costs
Loss
(gai…
on
chan…
in
fair 892 -12,204 3,223 22,129
value
of
acqu…
cont…
cons…
Total
cost…
expe… 2,265… 922,462 4,213,… 2,455…
and
other
(Los…
inco… -708,… 443,518 290,654 1,179…
from
oper…
Inte… 32,174 26,781 103,979 74,846
inco…
Inte… -605 -592 -1,756 -1,846
expe…
(Los…
gain
on -13,2… 8,558 3,171 3,064
equi…
inve…
Othe… 1,169 4,043 10,218 19,446
net
(Los…
inco…
befo…
prov… -688,… 482,308 406,266 1,274…
for
inco…
taxes
Prov…
for 95,955 58,139 302,134 287,1…
inco…
taxes
Net
(los… $ -784,… $ 424,169 $ 104,132 $ 987,3…
inco…
Net
(los…
inco…
per
shar…
Basic $ -3.86 $ 2.17 $ 0.52 $ 5.08
Dilu… $ -3.86 $ 2.11 $ 0.50 $ 4.95
Shar…
used
in
comp…
net
(los…
inco…
per
shar…
Basic 203,2… 195,670 200,989 194,4…
Dilu… 203,2… 201,429 208,762 199,4…
14
INCYTE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)
September 30, December 31,
2026 2025
──────────────────────────────────────────────────────────────────────────────
ASSETS
Cash, cash equivalents and marketable $ 3,854,572 $ 3,580,604
securities
Accounts receivable 1,237,027 1,024,407
Property and equipment, net 701,101 730,885
Finance lease right-of-use assets, 24,690 27,520
net
Inventory 475,836 443,292
Prepaid expenses and other assets 384,949 337,849
Equity investments 91,162 47,991
Other intangible assets, net 103,229 117,131
Goodwill 133,000 133,000
Deferred income tax asset 281,691 515,294
Total assets $ 7,287,257 $ 6,957,973
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable, accrued expenses
and $ 1,520,558 $ 1,634,780
other liabilities
Finance lease liabilities 31,762 34,715
Acquisition-related contingent 92,000 121,000
consideration
Stockholders’ equity 5,642,937 5,167,478
Total liabilities and stockholders’ $ 7,287,257 $ 6,957,973
equity
15
INCYTE CORPORATION
RECONCILIATION OF GAAP NET (LOSS) INCOME TO SELECTED NON-GAAP ADJUSTED
INFORMATION
(unaudited, in thousands, except per share amounts)
Three Nine
Months Months
Ended Ended
Septem… Septemb…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
GAAP
Net $ -784,8… $ 424,169 $ 104,132 $ 987,371
(Loss)
Income
Adjust…
Non-ca…
stock
compen…
from 43,503 39,634 120,912 114,058
equity
awards
(R&D)2
Non-ca…
stock
compen…
from 25,130 21,041 77,296 70,511
equity
awards
(SG&A)2
Non-ca…
stock
compen…
from 1,160 923 2,974 2,620
equity
awards
(COGS)2
Non-ca… 82 82 245 245
intere…
Loss
(gain)
on 13,225 -8,558 -3,171 -3,064
equity
invest…
Amorti…
of
acquir… 5,384 5,384 16,152 16,152
product
rights5
Loss
(gain)
on
change
in fair 892 -12,204 3,223 22,129
value
of
contin…
consid…
Asset
impair…
and — — 23,214 —
related
dispos…
costs7
Contra…
dispute — — — -242,2…
settle…
Escient
acquis…
related — — — 2,297
compen…
expens…
Vega
acquis…
transi…
costs 2,571 — 2,571 —
and
related
compen…
expens…
Tax
effect
of -37,947 -14,499 -60,565 27,290
Non-GA…
pre-tax
adjust…
Non-GA…
Net $ -730,8… $ 455,972 $ 286,983 $ 997,358
(Loss)
Income
Non-GA…
net
(loss)
income
per
share:
Basic $ -3.60 $ 2.33 $ 1.43 $ 5.13
Diluted $ -3.60 $ 2.26 $ 1.37 $ 5.00
Shares
used in
comput…
Non-GA…
net
(loss)
income
per
share:
Basic 203,246 195,670 200,989 194,459
Diluted 203,246 201,429 208,762 199,405
1 Included within the Milestone and contract revenues line item in the Condensed
Consolidated Statements of Operations (in thousands) for the three and nine
months ended September 30, 2026 are milestones of $49,800 and $78,000,
respectively, earned from our collaborative partners, as compared to $45,000 and
$50,000 of milestones earned for the three and nine months ended September 30,
2025. Included within the Research and development expenses line item in the
Condensed Consolidated Statements of Operations (in thousands) for the three and
nine months ended September 30, 2026 are upfront consideration and milestones of
$1,237,300 and $1,249,900, respectively, related to our Vega acquisition and
collaborative partners as compared to upfront consideration and milestones of
$100 and $28,150, respectively, for the three and nine months ended September
30, 2025.
2 As included within the Cost of sales (including definite-lived intangible
amortization) line item; the Research and development expenses line item; and
the Selling, general and administrative expenses line item in the Condensed
Consolidated Statements of Operations.
3 As included within the Interest expense line item in the Condensed
Consolidated Statements of Operations.
4 As included within the Loss (gain) on equity investments line item in the
Condensed Consolidated Statements of Operations.
5 As included within the Cost of sales (including definite-lived intangible
amortization) line item in the Condensed Consolidated Statements of Operations.
Acquired product rights of licensed intellectual property for Iclusig is
amortized utilizing a straight-line method over the estimated useful life of
12.5 years.
6 As included within the Loss (gain) on change in fair value of acquisition-
related contingent consideration line item in the Condensed Consolidated
Statements of Operations.
7 As included within the Asset impairment and related disposal costs line item
in the Condensed Consolidated Statements of Operations.
8 Included within the Research and development line item in the Condensed
Consolidated Statements of Operations (in thousands) is $0 and $2,117 for the
three and nine months ended September 30, 2025, respectively, and included
within the Selling, general and administrative expenses line item in the
Condensed Consolidated Statements of Operations is $0 and $180 for the three and
nine months ended September 30, 2025, respectively. Escient acquisition related
compensation expense represents non-recurring charges associated with severance
payments to former Escient employees.
9 Included within the Research and development line item in the Condensed
Consolidated Statements of Operations (in thousands) is $2,571 for both the
three and nine months ended September 30, 2026. Vega transition costs primarily
represent employee related costs to transition research and development
activities to us as part of the Vega acquisition, as well as retention payments
to former Vega employees.
10 Income tax effects of Non-GAAP pre-tax adjustments are calculated using an
estimated annual effective tax rate, taking into consideration any permanent
items and valuation allowances against related deferred tax assets.
16