Incyte Corporation (NASDAQ:INCY) Q4 2019 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 08:00 am ET

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Incyte Corporation (NASDAQ:INCY) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings and welcome to the Incyte Fourth Quarter and Year End 2019 Earnings Conference Call. [Operator Instructions]

It is now my pleasure to introduce your host, Mike Booth, Head of Investor Relations for Incyte. Please go ahead, sir.

Executive
Michael Booth

Thank you, Kevin. Good morning and welcome to Incyte fourth quarter and full year 2019 earnings conference call and webcast. The slides used today are available for download on the Investor section of incyte.com. I am joined on the call today by Herve, Barry, Steven and Christiana who will deliver our prepared remarks, and by Dash, who will join us for the Q&A session. [Operator Instructions]

Before we begin, I'd like to remind you that some of the statements made during the call today are forward-looking statements, including statements regarding our expectations for 2020 guidance, the commercialization of our products and our development plans for the compounds in our pipeline as well as the development plans of our collaboration partners. These forward-looking statements are subject to a number of risks and uncertainties that may cause our actual results to differ materially including those described in our 10-Q for the quarter ended September 30th, 2019 and from time to time in our other SEC documents. It is also important to note that our recently announced collaboration with MorphoSys for the global development and commercialization of tafasitamab is subject to clearance by antitrust authorities, and therefore any statements we may make about the collaboration and tafasitamab are conditioned on such clearance.

We'll now begin the call with Herve.

Executive
Herve Hoppenot

Thank you, Mike and good morning, everyone. So 2019 was another year marked by strong commercial performance including surpassing $2 billion in annual revenue for the first time. In addition, we continue to advance our R&D portfolio and make progress towards our strategic goal of diversification and growth. During the year, we achieved 13 of the 15 key goals we laid out this time last year, including the approval and successful launch of Jakafi in steroid-refractory acute GVHD. Whilst the results of the GRAVITAS-301 trial of itacitinib was disappointing, we announced positive result of the Phase 3 REACH2 trial, we submitted the NDA for pemigatinib based on strong updated data and we are very pleased to recently report positive top line Phase 3 results from rux cream in atopic dermatitis.

In addition to our internal portfolio, we continued to seek external assets that could complement our business. Our recent collaboration with MorphoSys for tafasitamab represents a strong fit with our portfolio, and we expect to be able to capitalize on our commercial expertise in the US and Europe.

Turning now to our commercial performance in 2019, we had another year of robust top line growth. Product and royalty revenues grew 22% year-over-year with growth coming from all four sources. Jakafi was up 21%, Jakavi royalties up 16%, Iclusig up 13%, and Olumiant royalties doubled to $80 million.

Slide 5 shows the revenue momentum over the last several years. Product and royalty revenues have more than tripled since