Incyte Corp. reported strong second-quarter earnings, while posting a loss for the first half, due to upfront costs related to an agreement with a German pharma company.
Incyte is based near Wilmington.
“We continue to execute successfully across all aspects our business,” stated Hervé Hoppenot, CEO of Incyte.
For the first half, Incyte recorded an operating loss compared to operating income for the same period in 2019, primarily due to upfront costs related to an agreement with MorphoSys and its cancer drug.
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Under the terms of the agreement, German-based MorphoSys will receive an upfront payment of $750 million. In addition, Incyte will make an equity investment into MorphoSys of $150 million.
Earnings beat forecasts, according to Zacks.
The company took note of several ongoing studies of (Jakafi) ruxolitinib, conducted by Incyte alone or in collaboration with Novartis, and of baricitinib, conducted by Lilly, in patients battling Covid-19. Initial results from these trials are expected in the second half of 2020.
Incyte continued to see strong demand for its blockbuster blood cancer drug Jakafi. While a number of drugs are in the Incyte pipeline, Jakafi still accounts for the bulk of revenues.
(See summary below)