(Reuters) -Drugmaker Incyte Corp on Tuesday raised its annual sales forecast for its blood cancer treatment Jakafi after robust demand for the drug helped the company surpass Wall Street estimates for third-quarter revenue and profit.
However, shares fell 2.4% in premarket trading after the company said it halted two new drug programs and stopped developing povorcitinib for chronic spontaneous hives, an itchy skin condition, citing pipeline prioritization.
“We are not surprised by the program’s discontinuation due to safety concerns for the class,” said William Blair analyst Matt Phipps referring to povorcitinib.
The company now expects annual sales of blood cancer drug Jakafi in the range of $3.05 to $3.08 billion, compared to its previous forecast of $3 billion to $3.05 billion.
Sales of Jakafi, the company’s flagship treatment for blood cancers such as myelofibrosis and polycythemia vera, climbed 7% to $791 million in the quarter ended September 30, from a year ago. Analysts had expected $780.1 million, as per LSEG compiled data.
Incyte agreed to pay Novartis $280 million in May to settle a royalty dispute related to Jakafi. Starting January 2025, Novartis will receive a 50% reduction in future royalty rates on U.S. Jakafi sales as part of the agreement.
As Jakafi is expected to be pressured by potential patent expirations in 2028, Incyte’s CEO Bill Meury previously outlined a growth strategy that will focus on accelerating drug development and prudent capital allocation along with well-executed M&A.
Wary of a looming patent cliff, Incyte has been leaning on sales of Opelzura, its cream for vitiligo and mild-to-moderate atopic dermatitis, to drive future growth.
Incyte’s other offerings include Zynyz for advanced anal cancer and Monjuvi for follicular lymphoma.
Sales of Opzelura jumped 35% to $188 million in the reported quarter, beating estimates of $175.8 million.
On an adjusted basis, Incyte earned $2.26 per share, exceeding estimates of $1.66 apiece.
Total revenue came in at $1.37 billion, surpassing estimates of $1.26 billion.
(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Vijay Kishore and Shailesh Kuber)
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