What Happened?
Shares of biopharmaceutical company Incyte Corporation (NASDAQ: INCY) jumped 10.4% in the afternoon session after the company reported second-quarter financial results that beat analyst expectations and raised its full-year guidance for its top-selling drug, Jakafi. The specialty drugmaker posted quarterly revenue of $1.22 billion, a significant 17.3% increase from the previous year, which surpassed the consensus estimate of $1.15 billion. Its adjusted profit of $1.57 per share also came in ahead of Wall Street's forecasts. The strong performance was driven by robust product sales, with revenue from its flagship drug Jakafi growing by 8% and sales of its Opzelura cream surging 35% year-over-year. Citing continued demand, Incyte lifted its 2025 sales forecast for Jakafi to a new range of $3.0 billion to $3.05 billion.
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What Is The Market Telling Us
Incyte’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. Moves this big are rare for Incyte and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock dropped 15.2% on the news that the company released phase three trial data for a skin condition treatment, which fell below Wall Street's expectations. According to the data, the drug was effective for less than half of the participants who took it in the trials.
Incyte is up 11.4% since the beginning of the year, and at $77.49 per share, it is trading close to its 52-week high of $83.38 from November 2024. Investors who bought $1,000 worth of Incyte’s shares 5 years ago would now be looking at an investment worth $790.39.
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