Cash and Cash Equivalents [USD, Thousands]

Accounts Receivable [USD, Thousands]

Inventory [USD, Thousands]

PP&E [USD, Thousands]

Goodwill [USD, Thousands]

Intangible Assets [USD, Thousands]

Lease Liabilities [USD, Thousands]

Shareholders' Equity [USD, Thousands]

231bbab40b5b60bf30c792d0c884b9f748c437db951bdbbd9337a1218086e540

af8bf367920ca127efada0096ae11542a03b5cbc1b99f61815626461c9b48f14

Adjustments for Non-Cash Items [USD, Thousands]

Stock-Based Compensation [USD, Thousands]

Changes in Working Capital [USD, Thousands]

Capital Expenditures (CapEx) [USD, Thousands]

Proceeds from / Repayments of Debt [USD, Thousands]

Share Repurchases [USD, Thousands]

Dividend Payments [USD, Thousands]

Net Change in Cash [USD, Thousands]

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United States

Europe

Europe and Japan

Other Countries

Total Revenue

d4b4cf92982b95355c415cb5ce897fc65df04f42fe81d81e27868451e5d98745

Overall Response Rate for steroid-refractory acute GVHD (percentage)

Complete Response Rate for steroid-refractory acute GVHD (percentage)

Objective Response Rate in L-MIND for relapsed or refractory DLBCL (percentage)

Complete Response Rate in L-MIND for relapsed or refractory DLBCL (percentage)

Median Duration of Response in L-MIND for relapsed or refractory DLBCL (months)

IGA Treatment Success in mild to moderate atopic dermatitis (TRuE-AD1) (percentage)

IGA Treatment Success in mild to moderate atopic dermatitis (TRuE-AD2) (percentage)

Itch NRS4 response in mild to moderate atopic dermatitis (TRuE-AD1) (percentage)

Itch NRS4 response in mild to moderate atopic dermatitis (TRuE-AD2) (percentage)

F-VASI75 rate in nonsegmental vitiligo patients (TRuE-V1/V2) (percentage)

Probability of survival for MF patients on JAKAFI in COMFORT-I (percentage)

Probability of survival for MF patients on placebo in COMFORT-I (percentage)

Probability of survival for MF patients on JAKAFI in COMFORT-II (percentage)

Probability of survival for MF patients on best available therapy in COMFORT-II (percentage)

Overall Response Rate for NIKTIMVO (axatilimab) in cGVHD (AGAVE-201) (percentage)

HiSCR100 achievement rate in Hidradenitis Suppurativa patients on povorcitinib (percentage)

Overall Response Rate for METex14 skipping treatment-naive patients in GEOMETRY mono-1 (percentage)

Overall Response Rate for METex14 skipping previously-treated patients in GEOMETRY mono-1 (percentage)

Median Duration of Response for METex14 skipping treatment-naive patients in GEOMETRY mono-1 (months)

Median Duration of Response for METex14 skipping previously-treated patients in GEOMETRY mono-1 (months)

07332fc38e7c2ad0af6186cde4c36a011f17847c8af909f446801cf9edb18180

Net Income (Loss) [USD, thousands]

Depreciation and Amortization [USD, thousands]

Stock-Based Compensation [USD, thousands]

Other, net [USD, thousands]

Realized and Unrealized (Gain) Loss on Equity Investments [USD, thousands]

Loss (Gain) on Change in Fair Value of Acquisition-Related Contingent Consideration [USD, thousands]

Net Cash Provided by (Used in) Operating Activities [USD, thousands]

Sale of Equity Investments [USD, thousands]

Capital Expenditures [USD, thousands]

Purchases of Marketable Securities [USD, thousands]

Sale and Maturities of Marketable Securities [USD, thousands]

Net Cash Provided by (Used in) Investing Activities [USD, thousands]

Proceeds from Issuance of Common Stock under Stock Plans [USD, thousands]

Tax Withholdings Related to Restricted and Performance Share Vesting [USD, thousands]

Payment of Finance Lease Liabilities [USD, thousands]

Payment of Contingent Consideration [USD, thousands]

Net Cash Used in Financing Activities [USD, thousands]

Effect of Exchange Rates on Cash, Cash Equivalents, and Restricted Cash [USD, thousands]

Net (Decrease) Increase in Cash, Cash Equivalents, and Restricted Cash [USD, thousands]

Income Taxes Paid [USD, thousands]

Leased Assets Obtained in Exchange for New Operating Lease Liabilities [USD, thousands]

Leased Assets Obtained in Exchange for New Finance Lease Liabilities [USD, thousands]

Deferred Income Taxes [USD, thousands]

Cash, Cash Equivalents, and Restricted Cash at Beginning of Period [USD, thousands]

Cash, Cash Equivalents, and Restricted Cash at End of Period [USD, thousands]

Unpaid Purchases of Property and Equipment [USD, thousands]

Unpaid Excise Tax on Repurchase of Common Stock [USD, thousands]

088b28994d68cccee987bdefbacf593fb786d1f30b6942051add099eeaaa3804

Product revenues, net (USD, thousands)

Product royalty revenues (USD, thousands)

Milestone and contract revenues (USD, thousands)

Total revenues (USD, thousands)

Cost of product revenues (including definite-lived intangible amortization) (USD, thousands)

Research and development (USD, thousands)

Selling, general and administrative (USD, thousands)

Loss (gain) on change in fair value of acquisition-related contingent consideration (USD, thousands)

(Profit) and loss sharing under collaboration agreements (USD, thousands)

Total costs, expenses and other (USD, thousands)

Income (loss) from operations (USD, thousands)

Interest expense (USD, thousands)

Realized and unrealized gain (loss) on equity investments (USD, thousands)

Other, net (USD, thousands)

Income (loss) before provision for income taxes (USD, thousands)

Provision for income taxes (USD, thousands)

Net income (loss) (USD, thousands)

Basic net income (loss) per share (USD)

Diluted net income (loss) per share (USD)

Basic shares used in computing net income (loss) per share (thousands)

Diluted shares used in computing net income (loss) per share (thousands)

6e94c6c3fa320da3148b7fc6e63d955481c40966c20c3a4c67dc999820ba9578

Marketable securities—available-for-sale (USD, thousands)

Accounts receivable (USD, thousands)

Inventory - Current assets (USD, thousands)

Prepaid expenses and other current assets (USD, thousands)

Total current assets (USD, thousands)

Restricted cash (USD, thousands)

Long term equity investments (USD, thousands)

Inventory - Non-current assets (USD, thousands)

Property and equipment, net (USD, thousands)

Finance lease right-of-use assets, net (USD, thousands)

Other intangible assets, net (USD, thousands)

Goodwill (USD, thousands)

Deferred income tax asset (USD, thousands)

Other assets, net (USD, thousands)

Total assets (USD, thousands)

Accounts payable (USD, thousands)

Accrued compensation (USD, thousands)

Accrued and other current liabilities (USD, thousands)

Finance lease liabilities - Current (USD, thousands)

Acquisition-related contingent consideration - Current (USD, thousands)

Total current liabilities (USD, thousands)

Acquisition-related contingent consideration - Non-current (USD, thousands)

Finance lease liabilities - Non-current (USD, thousands)

Other liabilities (USD, thousands)

Total liabilities (USD, thousands)

Common stock (USD, thousands)

Additional paid-in capital (USD, thousands)

(Accumulated deficit) retained earnings (USD, thousands)

Total stockholders’ equity (USD, thousands)

Total liabilities and stockholders’ equity (USD, thousands)

152b9e0e2d4b249bdca27e42983c218c95b4a3849de89854100a3e026281270d

Operating cash flow was negative in Q2 2024 primarily due to a **net loss of $275,053 thousand** compared to a net income in the previous year, along with significant changes in working capital. The company also experienced **substantial realized and unrealized gains on equity investments** that, while beneficial to earnings, reduced cash flows, as well as an **increase in inventory** that drove higher cash outflows. Additionally, while higher **accounts payable** helped to offset some of the cash outflow, a relatively smaller increase in **accrued and other liabilities** did not provide sufficient mitigation, all culminating in a negative operating cash flow result.  **[0000879169-24-000149_incy-20240630.htm:4]** 

Why was Operating Cash Flow negative in Q2 2024?

In Q2 2024, Incyte’s capital expenditures increased substantially from **$19,243 thousand in Q2 2023** to **$63,692 thousand in Q2 2024**. Although the documents do not provide explicit details for this spike, it is likely due to **investments in infrastructure or assets** to support ongoing operations and growth, as capital expenditures typically cover spending on property, equipment, and other long-term assets.  **[0000879169-24-000149_incy-20240630.htm:4]** **[0000879169-24-000149_incy-20240630.htm:70]** 

Why did Capital Expenditures spike in Q2 2024?

The shift to positive investing cash flow in Q2 2024 was primarily due to a significant increase in the **sales of equity investments**, which rose to **$227,257 thousand** in Q2 2024 from only **$45 thousand** in Q2 2023. This major increase, combined with higher proceeds from the **sale and maturities of marketable securities** (increasing to **$182,634 thousand** from **$150,487 thousand**), largely drove the positive cash flow. Although higher purchases of marketable securities and increased capital expenditures partly offset these inflows, the net effect of the stronger investment sales was the key contributor to the positive shift in cash flow.  **[0000879169-24-000149_incy-20240630.htm:4]** 

What contributed to the shift to positive Investing Cash Flow in Q2 2024?

The drastic swing in Q2 2024 was primarily driven by the **$2.0 billion share repurchase program**, which resulted in a **cash outflow of approximately $2,004,687 thousand** for repurchasing and canceling about **33.3 million shares at $60 per share**. This significant outlay shifted the financing activities from a modest net cash inflow to a substantial net cash outflow, reflecting the company’s strong confidence in its **commercial portfolio, clinical pipeline, and long-term value**.  **[0000879169-24-000149_incy-20240630.htm:70]** **[0000879169-24-000146_incy-q22024xexx991.htm:0]** **[INCY_3394996_9]** 

What drove the drastic swing in Financing Activities in Q2 2024?

ef252ea9f04950e2275295309da827467f77ba7059e4e63ae7cec7c7aa12736f

The sharp decrease in **cash and cash equivalents** in Q2 2024 was primarily driven by two major factors. First, **Incyte executed a $2.0 billion share repurchase program**, repurchasing approximately **33.3 million shares** at about **$60 per share**, which significantly reduced the cash balance.  **[0000879169-24-000149_incy-20240630.htm:1]** **[0000879169-24-000146_incy-q22024xexx991.htm:7]** **[INCY_3394996_9]**  Second, the company completed the **acquisition of Escient Pharmaceuticals** for a total consideration of **$783 million**, further depleting cash reserves.  **[0000879169-24-000149_incy-20240630.htm:70]** **[0000879169-24-000146_incy-q22024xexx991.htm:7]** **[INCY_3394996_9]** 

Why did Cash and cash equivalents drop so sharply in Q2 2024?

In Q2 2024, Total assets fell significantly primarily due to a sharp reduction in **cash and cash equivalents**, which dropped from **$3,213,376 thousand** at the end of 2023 to **$987,293 thousand** by the end of Q2 2024, largely driven by a **$2.0 billion share repurchase** in June 2024.  **[0000879169-24-000149_incy-20240630.htm:1]** **[0000879169-24-000146_incy-q22024xexx991.htm:7]**  In addition, there were sizable declines in **long term equity investments** (from **$187,716 thousand** to **$29,668 thousand**) and **other assets** (from **$52,107 thousand** to **$21,917 thousand**), with a minor impact from changes in **marketable securities**.  **[0000879169-24-000149_incy-20240630.htm:1]** 

What caused Total assets to fall significantly in Q2 2024?

The **total liabilities** for Q4 2024 increased markedly from **$1,592,270 thousand** to **$1,996,694 thousand**, an increase of **$404,424 thousand**. This was primarily driven by significant rises in **accounts payable**, **accrued compensation**, and **other current liabilities**, along with adjustments in acquisition-related contingent consideration (notably, an increase in the current portion and a decrease in the long-term portion). These changes reflect higher operational liabilities likely due to increased growth activities and R&D investments.  **[0001628280-25-004514_incy-q42024xexx991.htm:13]** **[0001628280-25-004633_incy-20241231.htm:134]** 

Why did Total liabilities increase markedly in Q4 2024?

The sharp drop in **long-term equity investments** in Q2 2024 is explained by the sale of a substantial portion of these investments. The company recorded **$227,257 thousand** in proceeds from the sale of equity investments and recognized a **realized and unrealized gain of $139,188 thousand**, which indicates that significant liquidation activity occurred during this period.  **[0000879169-24-000149_incy-20240630.htm:1]** **[0000879169-24-000149_incy-20240630.htm:4]** 

What explains the sharp drop in Long term equity investments in Q2 2024?

d5f1cb47826540e5189db6e93ba9753d947092f9528c95d5a5e2f1eb84813b74

The **Research and Development expenses** in Q2 2024 were exceptionally high mainly due to **one-time Escient acquisition costs** and increased investment in late-stage development programs. Specifically, the company recorded a **$679.4 million expense** for acquired in-process research and development assets as part of the Escient acquisition, along with an additional **$12.5 million** in related compensation expenses. Additionally, the timing of other R&D-related expenses contributed to the increase, while ongoing investments in late-stage development further elevated the costs.  **[0000879169-24-000149_incy-20240630.htm:66]** **[0000879169-24-000146_incy-q22024xexx991.htm:6]** 

Why was Research and development so high in Q2 2024?

The operating income turned negative in Q2 2024 primarily due to the **one-time expense of $691 million** related to the Escient Pharmaceuticals acquisition, which was recorded under R&D costs. In addition, there was a **184% increase** in GAAP R&D expenses, significant increases in SG&A expenses, and a rise in the cost of product revenues, all of which compounded to turn operating income into a substantial loss.  **[INCY_3394996_9]** **[0000879169-24-000146_incy-q22024xexx991.htm:7]** **[0000879169-24-000146_incy-q22024xexx991.htm:6]** 

Why did operating income turn negative in Q2 2024?

The net loss in Q2 2024 was driven primarily by **one-time acquisition costs** related to the Escient Pharmaceuticals purchase, which included an **upfront expense of $691 million** that significantly increased **R&D expenses to $1.14 billion** (up from $400.8 million in Q2 2023).  **[INCY_3394996_9]** **[0000879169-24-000146_incy-q22024xexx991.htm:7]**  In addition, **operating expenses nearly doubled to $1.52 billion** compared to the previous year’s quarter  **[0000879169-24-000149_incy-20240630.htm:2]** , and there were **non-tax-deductible charges of $710.9 million** that led to a higher tax expense despite a pre-tax loss.  **[0000879169-24-000146_incy-q22024xexx991.htm:7]**  Although there was a **9% growth in revenue to $1.04 billion**, it was insufficient to offset these increased costs.  **[0000879169-24-000146_incy-q22024xexx991.htm:0]** **[0000879169-24-000149_incy-20240630.htm:2]** 

What drove the net loss in Q2 2024?

The sharp drop in **basic EPS** in Q2 2024 was primarily driven by a shift from a **net income of $203.5 million** in Q2 2023 to a **net loss of $444.6 million** in Q2 2024, which directly impacted EPS. Additionally, significant **acquisition-related expenses**—including a **$691 million one-time R&D expense** and a **$20 million SG&A expense**—combined with increased operating costs contributed greatly to the decline, despite a **$2 billion share repurchase program** that reduced the number of outstanding shares.  **[0000879169-24-000149_incy-20240630.htm:61]** **[0000879169-24-000149_incy-20240630.htm:27]** **[INCY_3394996_9]** 

What caused the sharp drop in basic EPS in Q2 2024?

f754b301d8b1c07bf3c03ff527b186711feca6fd2465ed14f74cd0b726576789

d950e07d98c9bdad719a79fd7e968553ec436ac86187babba7907c3e6cda646e

Incyte Corp (INCY)

Financials