Drug developer Incyte Corp. is reporting revenue from a new product on the market, although the company’s loss widened in the first quarter, due to higher research and other expenses as its pharmaceuticals moved through the development pipeline. Incyte is based near Wilmington.
Shares of Incyte were up $1.50 a share in early afternoon trading on Thursday. Shares have been trading near the company’s 52-week high, thanks to the promising drug developments. The $21 a share price recorded in morning trading compares to a 52-week low of around $12 a share.
The revenue is coming from its first commercial product, Jakafi,which was approved by the US Food & Drug Administration for the treatment of patients with intermediate or high-risk myelofibrosis. Myelofibrosis is a bone marrow disorder.
“The early response to Jakafi is encouraging, and our launch is proceeding well. Already a fairly broad base of hematologists and oncologists are prescribing primarily for their more severely ill patients,” said Paul A. Friedman, M.D., Incyte CEO. “As physicians become more familiar with Jakafi and more community-based hematologists and oncologists experience the compelling benefits Jakafi provides in terms of spleen reduction and symptom improvement, we expect to see a gradual increase in the use of Jakafi among appropriate patients with less severe disease.”
During the first quarter, the Company shipped $25.1 million of Jakafi to its specialty pharmacies.
Another drug, ruxolitinib, is moving to a Phase III trial, which, if successful, could lead to final approval by regulators. The drug aims to treat polycythemia, a condition that results in over-production of red blood cells.
A number of other drugs are in earlier trials.
Total revenues for the quarter ended March 31, 2012, were $36.2 million, compared to $32 million for the same period in 2011. First quarter 2012 revenues include net product revenues of $19.3 million. Revenue for the quarter ended March 31, 2011, included a $15.0 million milestone payment from the company’s agreement with Novartis for a drug product.
As a result of the $40 million regulatory milestone earned from partner Novartis in April 2012, the company is increasing 2012 revenue guidance from $67 million to $107 million. This guidance excludes net product revenue and any potential future milestones from partners.
Net loss for the quarter ended March 31 was $45.4 million compared to a net loss of $26.5 million,for the same period in 2011. Included in net loss for the quarter ended March 31, 2012, was $9.9 million of non-cash expense related to the impact of expensing employee stock options, compared to $6.9 million included in net loss for the same period in 2011.
Research and development expenses for the quarter ended March 31, 2012, were $49.0 million, as compared to $36.3 million for the same period in 2011. Included in research and development expenses for the quarter ended March 31, 2012, was a non-cash expense of $6.7 million related to the impact of expensing employee stock options, as compared to $4.4 million for the same period in 2011.
The increase in research and development expenses for the quarter ended March 31, 2012, compared to the prior year period was primarily a result of increased clinical development costs related to work in the company’s pipeline and increased non-cash employee stock option expense. The Company expects its research and development expenses to vary from period to period, mainly due to the timing of its clinical development activities.
As of March 31, 2012, cash, cash equivalents and marketable securities totaled $236.4 million compared to $277.6 million as of December 31, 2011. These amounts exclude $19.0 million of restricted cash and investments held in an escrow account reserved for interest payments through October 2012 on the 4.75% Convertible Senior Notes.
