22 Aug

Behind Incyte’s 2Q17 Product Portfolio

WRITTEN BY Mike Benson

Incyte’s  product portfolio

Incyte’s (INCY) product portfolio includes targeted therapies and immunotherapies for oncology as well as non-oncology products. Incyte currently markets only two products: Jakafi and Iclusig. Another product, Olumiant (Baricitinib), has recently been approved in Japanese markets for rheumatoid arthritis.

Behind Incyte’s 2Q17 Product Portfolio

The marketing rights for Jakafi outside of US markets are with Novartis (NVS), which markets the drug as Jakavi. The worldwide rights for development and commercialization of Olumiant are licensed to Eli Lilly (LLY).

Oncology products

Incyte has classified its oncology product portfolio into two categories based on the method of treatment used to cure the disease:

  • targeted anti-cancer therapies
  • immuno-oncology or immunotherapies

Targeted anti-cancer therapies include drugs that target cancer cells while causing low damage to normal cells. Targeted therapies in Incyte’s portfolio include Jakafi (ruxolitinib) and capmatinib.

Immunotherapies are drugs that target a patient’s immune system to fight cancer cells. Incyte’s immunotherapy portfolio includes Epacadostat. Notably, Incyte has entered into collaborations with Merck (MRK) and Bristol-Myers Squibb (BMY) for the development of Epacadostat.

Incyte acquired Iclusig from Ariad Pharmaceuticals (ARIA) in June 2016. Iclusig is used to treat chronic myeloid leukemia and Philadelphia-chromosome positive acute lymphoblastic leukemia.

Non-oncology drugs

Incyte’s non-oncology portfolio includes two drugs: Baricitinib and Ruxolitinib.

Eli Lilly (LLY) holds the exclusive worldwide rights for the development and commercialization of Olumiant (baricitinib). The European Commission approved the marketing authorization application for Olumiant (baricitinib) in February 2017, while the Japan Ministry of Health, Labor, and Welfare granted marketing approval for Olumiant 2 mg and 4 mg tablets for the treatment of rheumatoid arthritis on July 3, 2017. However, the FDA (US Food and Drugs Administration) has declined the new drug application for Olumiant in its current form.

Eli Lilly and Incyte have also entered into an agreement for development and commercialization of Ruxolitinib for the treatment of graft-versus-host disease in US markets. For outside of US markets, Ruxolitinib is licensed to Novartis (NVS).

To divest company-specific risks, investors can consider ETFs like the Vanguard Healthcare ETF (VHT), which has 0.6% of its total assets in Incyte. VHT also has 2.2% in Eli Lilly, 5.6% in Pfizer (PFE), and 3.2% in AbbVie (ABBV).

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