Incyte Corp Q2 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jay Olson - Oppenheimer & Co Inc - Analyst : Congrats on the quarter. And welcome to Bill. It's a pleasure to reconnect with you, especially after having had the pleasure of working with you in the past. Thank you so much for outlining your strategic vision and the rigorous prioritization process that you're planning. Can you just share with us your thoughts on the relative importance of the three therapeutic areas at Incyte oncology, hematology, immunology. Do any of those get prioritized in your strategic plan? Or are you agnostic to therapeutic area?

Question: Tazeen Ahmad - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Thanks for taking my question. I just wanted to get a sense, maybe this is for Pablo on the read through from the CALR data that you saw from ET. And what to maybe expect to see for MF, and then related to that, you're going to show monotherapy as well as combo, but is there a minimum threshold that you're looking for activity on monotherapy if you could just help set expectations for that, we'd appreciate it.

Question: Salveen Richter - Goldman Sachs Group Inc - Analyst : Thank you for taking my question. Just a follow up to two comments that were mentioned earlier. One is initial data for 617 is now expected in the first half of '26. And should we read anything into this delay? And then secondly, you talked about the enthusiasm for Povo in the HS market and its competitive differentiation. Maybe just walk us through that, particularly when you look in the context of superior efficacy that we've seen for some of the currently approved therapies such as BIMZELX.

Question: Salim Syed - Mizuho Securities USA LLC - Analyst : First, my welcome to Bill. And thanks for the question. I guess maybe one for us on Niktimvo. So you had a good beat again on the quarter. And obviously, the J-code went into effect here around April -- April 1, I believe. Can you maybe comment to some of the intra-quarter dynamics there that you saw from the [JK] going into effect? Or do you describe the strength of the quarter to any other particular part of the launch? And I don't think you guys mentioned the inventory impact there for the quarter. So maybe just remind us what the inventory impact was for the quarter. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 29, 2025 / 12:00PM, INCY.OQ - Q2 2025 Incyte Corp Earnings Call

Question: Salim Syed - Mizuho Securities USA LLC - Analyst : Just on inventory, can you just comment on that?

Question: Jessica Fye - JPMorgan Chase & Co - Analyst : Thanks for taking my questions. A couple more for Bill. Curious how you plan to balance investment in pipeline advancement relative to external opportunities, relative to the need for investment to support kind of near-term commercial performance. And I guess, if we think about kind of looking out five years from now, how do you see Incyte? Is this going to be mainly organically grown, transformed through M&A, some kind of combination? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 29, 2025 / 12:00PM, INCY.OQ - Q2 2025 Incyte Corp Earnings Call

Question: Marc Frahm - TD Cowen - Analyst : Thanks for taking my questions. Maybe one quick one, clarifying in an earlier answer. Just on the threshold in MF for mutant CALR. Even if maybe the best path forward is combinations, do you need to see kind of convincing monotherapy activity that if that was all you had would have justified moving forward as well in order to kind of move the program forward either as the monotherapy or is the combo? Or it's just convincing combo data enough? And then similar to that, maybe Bill, when you're talking through the kind of the way to think about prioritizing financial resources, you can put solid tumor oncology or oncology (inaudible) as maybe the third priority. When you think about the G12D data coming, you guys are not first-in-class there necessarily. And the next steps are likely some combinations in addition to monotherapy work where this program really starts to blossom. Does it need to be a convincing best-in-class agent in order to justify that investment? Or is kind of over time competing in various combinations, but with a more similar asset enough to justify investment?

Question: Conor Mackay - BMO Capital Markets - Analyst : This is Connor McKay on for Evan. Thanks for taking our question and congrats on the quarter. This is the second quarter in a row that Niktimvo has come in ahead of consensus expectations. And you shared a little bit today about kind of the dynamics in the early days of the launch. But I'm curious, maybe can you remind us how you're thinking about sort of the peak opportunity for this product? And kind of has the launch trajectory in the early days change that at all? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 29, 2025 / 12:00PM, INCY.OQ - Q2 2025 Incyte Corp Earnings Call And then I guess maybe just one quick follow up for Bill as well. We discussed a little bit about business development and how you're prioritizing that versus the internal pipeline. I guess are there any therapeutic areas that you'd be most focused on sort of as it relates to business development.

Question: Kripa Devarakonda - Truist Securities - Analyst : Thank you so much for taking my question. And Bill, let me extend my welcome, looking forward to working with you. I have a question on Jakafi in PV. You saw continued growth in PV. It continues to be -- Jakafi continues to be a key growth driver here. Can you talk about the patient population where you're seeing increased uptake? And also given the footprint you have established here, any thoughts on life cycle management beyond XR and V617F, which we're going to see data, hopefully next year, would be helpful. And also one follow-up question. Monjuvi, was approved for relapsed/refractory FL in June. Just any thoughts on expectations there for the remainder of the year?

Question: Kripa Devarakonda - Truist Securities - Analyst : Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 29, 2025 / 12:00PM, INCY.OQ - Q2 2025 Incyte Corp Earnings Call

Question: David Lebowitz - Citibank Cameroon SA - Analyst : Thanks for taking my question and Bill, welcome to the team. I guess on Jakafi in the current quarter, what were the particular drivers -- which side of the -- which indication drove the (inaudible) therapy the most? I'm curious as to what IRA and the out-of-pocket changes might have had an impact in the quarter and how we should see that impacting going forward?

Question: Michael Schmidt - Guggenheim Securities LLC - Analyst : I just had another bigger picture question for Bill. So in terms of capital allocation and sort of reading between the lines and your prior comments, it sounds like there may be opportunity to perhaps optimize the earlier stage R&D portfolio. So longer term, as you think about potentially increasing R&D productivity for the company, are there specific areas where you think Incyte is underinvested, be it in terms of targets, modalities, or disease areas within the broader framework of oncology and I&I? And then just a quick one for Pablo on Povorcitinib. Just -- could you just help us understand the importance of the upcoming Phase 2 data in asthma in the second half of the year. I know you've noted in the past that the bar is high to advancing this, but I'm just curious what we should expect there.

Question: Gavin Clark-Gartner - Evercore Inc - Analyst : Very quick one. For should we expect updated ET data alongside the MF data later this year?