Incyte Corporation (INCY) | Investment Case

1. Company Snapshot

1.a. Company Description

Incyte Corporation, a biopharmaceutical company, focuses on the discovery, development, and commercialization of proprietary therapeutics in the United States and internationally.The company offers JAKAFI, a drug for the treatment of myelofibrosis and polycythemia vera; PEMAZYRE, a fibroblast growth factor receptor kinase inhibitor that act as oncogenic drivers in various liquid and solid tumor types; and ICLUSIG, a kinase inhibitor to treat chronic myeloid leukemia and philadelphia-chromosome positive acute lymphoblastic leukemia.Its clinical stage products include ruxolitinib, a steroid-refractory chronic graft-versus-host-diseases (GVHD); itacitinib, which is in Phase II/III clinical trial to treat naïve chronic GVHD; and pemigatinib for treating bladder cancer, cholangiocarcinoma, myeloproliferative syndrome, and tumor agnostic.

In addition, the company engages in developing Parsaclisib, which is in Phase II clinical trial for follicular lymphoma, marginal zone lymphoma, and mantel cell lymphoma.Additionally, it develops Retifanlimab that is in Phase II clinical trials for MSI-high endometrial cancer, merkel cell carcinoma, and anal cancer, as well as in Phase II clinical trials for patients with non-small cell lung cancer.It has collaboration agreements with Novartis International Pharmaceutical Ltd.; Eli Lilly and Company; Agenus Inc.; Calithera Biosciences, Inc; MacroGenics, Inc.; Merus N.V.; Syros Pharmaceuticals, Inc.; Innovent Biologics, Inc.; Zai Lab Limited; Cellenkos, Inc.; and Nimble Therapeutics, as well as clinical collaborations with MorphoSys AG and Xencor, Inc.

to investigate the combination of tafasitamab, plamotamab, and lenalidomide in patients with relapsed or refractory diffuse large B-cell lymphoma, and relapsed or refractory follicular lymphoma.The company was incorporated in 1991 and is headquartered in Wilmington, Delaware.

Show Full description

1.b. Last Insights on INCY

Incyte Corporation faced negative drivers over the recent three months. The company's Q4 earnings lagged estimates, with quarterly earnings of $1.8 per share, missing the Zacks Consensus Estimate of $1.94 per share. Institutional investors, such as Candriam S.C.A. and Hussman Strategic Advisors Inc., reduced their stakes in the company. Additionally, Incyte's 2026 guidance appeared to miss consensus, leading to an 8.2% sell-off, although adjusted for royalties, the sales guidance is nearly in line with expectations.

1.c. Company Highlights

Last Price	101.32
Change Percentage	-0.40%
Open	101.63
Previous Close	101.73
Market Cap ( Millions)	20164
Volume	1509365
Year High	112.29
Year Low	53.56
M A 50	101.83
M A 200	86.34

FCF Yield	6.72%
Dividend Yield	0.00%
ROE	29.15%
Debt / Equity	1.34%
Net Debt / EBIDTA	-172.05%
Price To Book	3.87
Price Earnings Ratio	15.55
Price To FCF	14.89
Price To sales	3.92
EV / EBITDA	9.74

2. Incyte's Robust Q4 2025 Earnings: A Strong Foundation for Future Growth

Incyte reported a strong financial performance in Q4 2025, with total revenues reaching $1.51 billion, a 28% increase year-over-year, and product revenues of $1.22 billion, up 20% from the prior year. For the full year 2025, revenue totaled $5.14 billion, a 21% increase, while net sales were $4.35 billion, also up 20% year-over-year. The company's EPS was $1.8, slightly below estimates of $1.94. Jakafi sales were a significant contributor, totaling $1.26 billion, representing a 53% increase versus 2024.

Publication Date: Feb -16

                                    📋 Highlights
                                    Revenue Growth:
                                                Q4 revenue reached $1.51 billion (up 28% YoY), with full-year revenue totaling $5.14 billion (up 21% YoY).
Jakafi Sales Surge:
                                                Jakafi sales hit $1.26 billion (53% YoY growth), driving over $400 million incremental sales and 11% prescription growth in Q4.
Core Business Expansion:
                                                Core business sales (ex-Jakafi) grew 20% YoY in Q4, with projections to reach $3–$4 billion by 2030 at 15–20% CAGR.
Opsalora Momentum:
                                                Opsalora net sales reached $207 million in Q4 (28% YoY) and $678 million annually (33% YoY), driven by U.S. and international AD/vitiligo markets.

                                

Segment Performance

Opsalora net sales in Q4 totaled $207 million, an increase of 28%, and full-year net sales were $678 million, up 33% versus 2024. Nikitimbo finished its first year at $152 million, with broad penetration and deep utilization of BMT centers. Manjovi sales were up 20% versus the prior year based on a strong launch in follicular lymphoma in 2025. The core business is expected to grow over 30% in '26 and has the potential to grow at a 15% to 20% five-year CAGR.

Pipeline Advancements

Incyte's pipeline has reached a new level of breadth and maturity, with 14 pivotal trials underway across seven assets by the end of the year and multiple data catalysts. The company expects FDA filing acceptance for povastatin in HS this quarter and plans to submit an SBLA for tafasitamab in first-line DLBCL in 2026. As noted by William Meury, the company has exclusivity to the end of the next decade, and the market is shifting from steroidal topicals to nonsteroidal topicals.

Valuation and Growth Prospects

Analysts estimate next year's revenue growth at 10.6%. With a P/E Ratio of 15.51 and an EV/EBITDA of 9.71, the market is pricing in moderate growth expectations. Incyte's ROE of 29.15% and ROIC of 20.77% indicate strong profitability. The company's diversified pipeline and growing core business position it well for long-term growth, with Jakafi expected to remain a significant contributor.

Future Outlook

In 2026, Incyte expects to continue building on its momentum through additional approvals, regulatory filings, pivotal data readouts, and trial initiations. The emphasis in '26 shifts to advancement across the portfolio, with a late-stage pipeline and multiple data catalysts expected throughout the year.

3. NewsRoom

Aberdeen Group plc Grows Stock Position in Incyte Corporation $INCY

Feb -20

Source: defenseworld.net

Incyte Remains Undervalued As Opzelura And Niktimvo Scale

Feb -19

Source: seekingalpha.com

Incyte to Present at Upcoming Investor Conferences

Feb -17

Source: businesswire.com

Cookson Peirce & Co. Inc. Acquires Shares of 11,331 Incyte Corporation $INCY

Feb -14

Source: defenseworld.net

Baird Chautauqua International Growth Fund: Q4 2025 Winners, Laggards, Buys & Sells

Feb -13

Source: seekingalpha.com

Incyte Q4 Earnings Call Highlights

Feb -12

Source: defenseworld.net

Incyte: Why The Market Is Overreacting To A Guidance 'Miss'

Feb -11

Source: seekingalpha.com

Incyte Corporation (INCY) Q4 2025 Earnings Call Transcript

Feb -10

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.30%)

6. Segments

Biotechnology

Expected Growth: 12.0%

The biotechnology segment is expected to grow at a rate higher than the global average due to the increasing demand for innovative treatments and the company's robust pipeline. The segment's focus on oncology and other diseases positions it for long-term growth, driven by the sales of its proprietary therapeutics and the company's strong research and development capabilities, justifying a growth rate above the global average of 10.3%.

7. Detailed Products

Jakafi

Jakafi is a prescription medicine used to treat adults with intermediate or high-risk myelofibrosis, including primary myelofibrosis, post-polycythemia vera myelofibrosis and post-essential thrombocythemia myelofibrosis.

Ivosidenib

Ivosidenib is a prescription medicine used to treat adults with acute myeloid leukemia (AML) with an isocitrate dehydrogenase-1 (IDH1) mutation.

Pemazyre

Pemazyre is a prescription medicine used to treat adults with cholangiocarcinoma (bile duct cancer) that has spread or cannot be removed by surgery.

Monjuvi

Monjuvi is a prescription medicine used to treat adults with diffuse large B-cell lymphoma (DLBCL) that has relapsed or is refractory.

8. Incyte Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Incyte Corporation's products are highly specialized and have limited substitutes, but the company still faces some competition from other pharmaceutical companies.

Bargaining Power Of Customers

Incyte Corporation's customers, primarily healthcare providers and patients, have limited bargaining power due to the company's strong brand recognition and limited alternatives.

Bargaining Power Of Suppliers

Incyte Corporation's suppliers, primarily contract manufacturers and raw material providers, have moderate bargaining power due to the company's dependence on them for high-quality materials.

Threat Of New Entrants

The pharmaceutical industry has high barriers to entry, including significant research and development costs, regulatory hurdles, and patent protections, making it difficult for new entrants to compete with Incyte Corporation.

Intensity Of Rivalry

The pharmaceutical industry is highly competitive, with many established players and a high level of rivalry among companies, including Incyte Corporation, to develop and market innovative treatments.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	0.73%
Debt Cost	7.38%
Equity Weight	99.27%
Equity Cost	7.38%
WACC	7.38%
Leverage	0.74%

11. Quality Control: Incyte Corporation passed 7 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Royalty Pharma

A-Score: 6.4/10

Value: 4.7

Growth: 3.8

Quality: 7.4

Yield: 4.0

Momentum: 9.5

Volatility: 9.0

1-Year Total Return ->

Halozyme Therapeutics

A-Score: 6.0/10

Value: 4.0

Growth: 9.1

Quality: 8.0

Yield: 0.0

Momentum: 9.0

Volatility: 6.0

1-Year Total Return ->

Exelixis

A-Score: 5.9/10

Value: 4.1

Growth: 8.0

Quality: 9.4

Yield: 0.0

Momentum: 8.5

Volatility: 5.3

1-Year Total Return ->

Incyte

A-Score: 5.7/10

Value: 3.8

Growth: 5.4

Quality: 9.1

Yield: 0.0

Momentum: 9.0

Volatility: 7.0

1-Year Total Return ->

United Therapeutics

A-Score: 5.6/10

Value: 3.9

Growth: 8.6

Quality: 7.9

Yield: 0.0

Momentum: 9.0

Volatility: 4.3

1-Year Total Return ->

Arcellx

A-Score: 4.2/10

Value: 6.2

Growth: 5.8

Quality: 5.0

Yield: 0.0

Momentum: 4.5

Volatility: 3.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-1.90%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.38%

Incyte Corporation - US45337C1027

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on INCY

1.c. Company Highlights

Better Quality

Less Volatile

Higher Growth

Earnings Miss

Revenues Miss

Expensive

Revenues Beats

Stable Momentum

Earnings Beats

Average Quality

Fairly Valued

Strong Momentum

2. Incyte's Robust Q4 2025 Earnings: A Strong Foundation for Future Growth

Segment Performance

Pipeline Advancements

Valuation and Growth Prospects

Future Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.30%)

6. Segments

Biotechnology

Expected Growth: 12.0%

7. Detailed Products

Jakafi

Ivosidenib

Pemazyre

Monjuvi

8. Incyte Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Incyte Corporation passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

101.32$

Current Price

101.32$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA