Boston, MA 02/19/2013 (wallstreetpr) – Incyte Corporation (NASDAQ:INCY) is relying very heavily on Jakafi sales. This is the only drug that is marketed by the company and was launched in Nov 2011 in the US. It is used in the treatment of high-risk or intermediate myelofibrosis (MFGLQ). Apart from this, research is also being conducted in collaboration with Xeloda that belongs to the Roche Holding Ltd (VTX:ROG), to use this drug to treat metastatic pancreatic cancer. Its collaboration with Novartis AG (ADR) (NYSE:NVS) will see the drug being marketed outside the US as well as it has now received approval from the European Commission to treat patients suffering either from post-essential thrombocythemia MF, or primary MF as well as post-polycythemia vera MF.
A strong final quarter
The company has performed very strongly due to Jakafi in its final quarter and saw a phenomenal increase in its total revenues from $28.9 million to $113.8 million. This was inclusive of royalty revenues, contract revenues, product revenues and a few other revenue streams. The royalty revenues were responsible for the $3.7 million that came in, during the reported quarter and contract revenues saw a rise of 149.6% up to $66.7 million. As compared to the year ago-quarter, other revenues saw an increase of 10.7%; totaling to $155,000.
The 2013 Outline
The large scale marketing and R&D costs that were involved in the Jakafi projects were primarily responsible for an increase in its selling, general and administrative (SG&A) expenses. Incyte Corporation (NASDAQ:INCY) project’s total revenue forecast is in the $210 million–$225 million range for F.Y. 2013. This will include the $66 million that is expected from collaborative agreements and the contract revenues worth $60 million that is expected on EU’s approval of Jakafi.
Apart from this, the company also expects to spend $260 million – $270 million on R&D and an additional $25 million- $28 million on employee stock options. Incyte Corporation (NASDAQ:INCY) is laying a lot of stress on the development and marketing of Jakafi
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