EP-262

The new Incyte CEO highlighted his intention to “build a comprehensive plan for acceleration that goes beyond just filling a revenue gap.” In his first public appearance as Incyte’s CEO, Bill Meury outlined his priorities for the company, which include taking a “fresh look” at the business’ R&D, operating expenses and capital allocation.During Incyte’s second-quarter earnings call on July 29, Meury highlighted his intention to “build a comprehensive plan for acceleration that goes beyond just filling a revenue gap,” referring to the company’s top-selling drug Jakafi. The blockbuster medication is expected to lose exclusivity at the end of 2028.The new chief executive emphasized the myeloproliferative neoplasms (MPNs) therapeutic area, underpinned by Jakafi and the investigational anti-mutant CALR agent INCA033989, which Meury billed as “arguably the most scientifically promising asset in the MPN space.”Immunology represents another pillar of Incyte’s business. There, Opzelura cream has shown strong performance across atopic dermatitis and vitiligo, Meury said. The drug’s second-quarter sales of $164 million marked 38% sequential growth and came out 5% ahead of analysts’ expectations. On the R&D side, Meury included the oral JAK inhibitor povorcitinib among a group of pipeline compounds that “have the potential to drive future sales growth and form the company’s core.” Incyte recently reported a pair of positive phase 3 trials for povorcitinib in the inflammatory skin condition hidradenitis suppurativa (HS), although the detailed results fell short of expectations.Despite povorcitinib’s underwhelming HS results compared with biologics, Incyte’s R&D head Pablo Cagnoni, M.D., said on the call that the drug still represents “significant opportunities for near-term revenue and long-term value creation.” And Meury said the company has “a clear incredible path to running this into a major product for Incyte.”A phase 2 trial for povorcitinib in asthma is expected to read out this year. The JAK inhibitor is also undergoing phase 3 studies in vitiligo and prurigo nodularis.Progress of Incyte’s R&D projects has not been the smoothest lately. A preclinical toxicology discovery put clinical development of the asset INCB000262 on hold less than six months after Incyte obtained the MRGPRX2 inhibitor through its acquisition of Escient Pharmaceuticals. The company in December also scrapped the development of zilurgisertib, an ALK-2 inhibitor, in myelofibrosis after disappointing phase 1/2 results. As part of his “fresh look,” Meury said Incyte’s early-stage pipeline will be put through a screening process, in which assets will be scored and compared to other programs based on strategic importance, probability of success, commercial potential and return on investment.The June appointment of Meury, who headed up Karuna Therapeutics until its $14 billion merger with Bristol Myers Squibb last year, raised the prospect of an Incyte buyout. While Meury didn’t mention the possibility of Incyte being an acquisition target on the call, he did lay out the company’s business development strategy to bring in external assets. Specifically, Incyte will look for “derisked pre-revenue or revenue-stage opportunities,” the new CEO said.Meanwhile, driving the growth of major products in the short term is necessary for long-term success, Meury said. In the second quarter, Incyte’s total product revenues were $1.06 billion, good for 17% growth year over year.