Incyte Corporation (NASDAQ:INCY) Q2 2020 Earnings Conference Call - Final Transcript

Aug 04, 2020 • 08:00 am ET

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Incyte Corporation (NASDAQ:INCY) Q2 2020 Earnings Conference Call - Final Transcript

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Operator
Operator

Hello and welcome to the Incyte Second Quarter 2020 Financial Results Conference Call and Webcast. [Operator Instructions]

It's now my pleasure to turn the call over to Mike Booth, Head of Investor Relations at Incyte. Please go ahead.

Executive
Michael Booth

Thank you, Kevin.

Good morning and welcome to Incyte's second quarter 2020 earnings call -- earnings conference call and webcast. The slides used today are available for download on the Investors 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. During the question-and-answer session, I ask that you limit yourself to one question and if needed one follow-up as this would enable as many of you to ask questions as time allows.

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 the development plans and expectations 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 March 31, 2020 and from time to time in our other SEC documents. In addition, I would like to caution everyone that the COVID-19 pandemic is an evolving situation and it is still relatively early to be able to assess the full effect of governmental, business and social actions and policies and overall economic conditions on our business. Accordingly, it is important to keep in mind that our statements on this webcast speak as of today.

We'll now begin the call with Herve.

Executive
Herve Hoppenot

Thank you, Mike, and good morning, everyone.

In the second quarter, we continued to execute well across the various facets of our business, driving strong revenue growth, achieving success in regulatory actions and in key clinical programs, while further improving our sound financial position. Jakafi grew 16% year-over-year to reach $474 million in the second quarter Jakavi and Olumiant royalties also grew nicely, up 16% and 35% respectively. And I'm also pleased to be able to report six sources of product and royalty revenues for the first time, with the approvals of Pemazyre and Tabrecta. Total product and royalty revenues were $593 million for the quarter, up 16% year-over-year.

We announced two product approvals since we reported Q1, including Tabrecta, which is licensed to Novartis, and just recently where we received our first approval for Monjuvi in collaboration with MorphoSys. Monjuvi is the first FDA approved therapy for the second-line treatment of adults with DLBCL, and we believe it has the potential to transform the treatment of patients with relapsed or refractory disease.

We also announced the positive results of REACH3, which is the largest randomized clinical trial ever conducted in steroid-refractory chronic GVHD patients. At EHA,