News of a halt to clinical trials for the treatment of certain kinds of cancer helped to send Incyte, Inc. shares downward, despite a solid earnings performance in the fourth quarter.
Shares were down 9 percent on Thursday, also a down day for the overall stock market.
The fourth quarter report and year-end results showed strong sales for its Jakafi blockbuster drug.
The company was also aided by strong overseas royalties for Jakafi from pharmaceutical giant Novartis.
Additionally, Eli Lilly and Company, is seeking regulatory approval of baricitinib for the treatment of rheumatoid arthritis. Baricitinib was licensed to Lilly by Incyte and has fared well in Stage 3 studies.
If approved by the FDA Lilly expects to launch baricitinib in early 2017.
Another Incyte drug, epacadostat, is expected to enter Phase 3 during the first half of 2016 for treatment of advance melanoma in combination with Merck & Co’s pembrolizumab.
“The momentum of Jakafi, now into its fifth year of commercialization, continues to be strong, and, pending regulatory approval, we look forward to a second important source of revenue from baricitinib,” stated Hervé Hoppenot, Incyte’s CEO. “Despite the outcome of the JANUS program, our development portfolio remains robust, comprised of 13 candidates against 10 molecular targets, demonstrating Incyte’s commitment to innovation and the productivity of our drug discovery and development engine.”
Hoppenot was referring to the announcement on Thursday that Incyte was discontinuing a Phase 3 study on use Jakafi for patients with advanced or metastatic pancreatic cancer. Earlier the company discontinued trials on the use of Jakafi on patients with types of solid tumors.
That news was not received well on Wall Street as the company’s stock price slid.
This came despite fourth quarter revenues of Jakafi of $182 million, compared to $106 million for the same period in 2014. For the full year ended December 31 revenues of Jakafi were $601 million, compared to $358 million for the same period in 2014, a 68 percent increase.
Net income for the quarter ended December 31, 2015, was $55 million, compared to net loss of $37 million for the same period in 2014.
Net income for the full year ended December 31, 2015, was $7 million, compared to a net loss of $48 million in 2014.
The company forecast net product revenues $800 million to $815 million in 2016 and took note of many ongoing research efforts.
Incyte has more than 550 employees in Delaware. A portion of that workforce are being temporarily moved to space across the line as work gets under way on an expansion of the company’s headquarters.
