Incyte’s product portfolio
Incyte’s (INCY) product portfolio includes drugs for oncology as well as other areas. For oncology, the product portfolio includes targeted therapies as well as immunotherapies. However, the products marketed by Incyte include Jakafi and Iclusig only. Another product, Baricitinib, is undergoing pivotal studies for the treatment of rheumatoid arthritis.
The above chart shows the present status of drugs under development by Incyte. The drug Jakafi is licensed to Novartis (NVS) for marketing outside the US markets. Novartis markets Jakafi as “Jakavi.” Also, the worldwide rights for the drug Capmatinib are licensed to Novartis, while the worldwide rights for the drug Baricitinib are licensed to Eli Lilly (LLY).
Incyte has classified its oncology product portfolio into two categories based on the method of treatment used to cure the disease. These categories are:
- targeted anti-cancer therapies
- immuno-oncology or immunotherapies
The targeted anti-cancer therapies include drugs that target cancer cells while causing less damage to normal cells. The drugs Jakafi and Capmatinib are targeted therapy drugs from Incyte’s portfolio.
Immunotherapies target patients’ immune systems to fight cancer cells. Epacadostat is an immunotherapy drug from Incyte’s portfolio.
Incyte also added Iclusig to its portfolio after acquiring rights for Iclusig from Ariad Pharmaceuticals (ARIA) in June 2016. The drug Iclusig is approved for the treatment of chronic myeloid leukemia as well as Philadelphia-chromosome positive acute lymphoblastic leukemia for patients who cannot be treated with other tyrosine kinase inhibitors.
On December 21, 2016, Incyte announced a global strategic research collaboration with Merus (MRUS) for the discovery and development of bispecific antibodies based on Merus’s Biclonics technology for expansion of Incyte’s large molecule portfolio.
Non-oncology drugs include Baricitinib and Ruxolitinib. Baricitinib is licensed to Eli Lilly. Incyte will receive milestone payments from Lilly for Baricitinib after the approval of the drug and royalties thereafter. AbbVie’s (ABBV) Humira is also used for the treatment of rheumatoid arthritis.
Incyte also announced an agreement with Lilly for development and commercialization of Ruxolitinib for the treatment of graft-versus-host disease in the US markets and another agreement with Novartis for development and commercialization rights of Ruxolitinib outside the US markets.
Investors can consider ETFs like the PowerShares Dynamic Biotech and Genome ETF (PBE), which holds ~4.9% of its total assets in Incyte, in order to divest the risk.