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Inside Incyte’s Jakafi Performance in 2Q17

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Aug. 23 2017, Updated 9:07 a.m. ET

Jakafi

Incyte’s (INCY) Jakafi (ruxolitinib) is approved by the FDA (US Food and Drug Administration) for the treatment of myelofibrosis and polycythemia vera, which are both rare types of blood cancer. Jakafi is the only FDA-approved drug for the treatment of these conditions.

Revenues from Jakafi in US markets rose ~32.6% to $276.0 million in 2Q17, up from $208.1 million in 2Q16. This growth was driven by the strong demand for the drug, which resulted in increased sales volumes in 2Q16.

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Jakafi and its importance

Incyte holds the marketing rights for US markets with itself, while it has entered into a collaborative agreement with Novartis (NVS) for the marketing of Jakafi outside of US markets. Novartis markets the drug outside the US as Jakavi.

Notably, Jakafi is the first product from Incyte’s portfolio that was approved by the FDA. Jakafi is also the first oral JAK inhibitor approved by the FDA.

Incyte received royalty revenues of $33.9 million from Jakavi sales in 2Q17 by Novartis. Incyte holds the patent rights for the composition of matter and the use of Jakafi (ruxolitinib) up to November 2026, and it has also received extensions for these patents up to 2027.

To divest company-specific risks, investors can consider ETFs like the iShares Global Healthcare ETF (IXJ), which has 0.5% of its total assets in Incyte (INCY). IXJ also has 8.2% in Johnson & Johnson (JNJ), 3.9% in Merck (MRK), and 2.2% in GlaxoSmithKline (GSK).

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