Incyte Corporation

It's now my pleasure to turn the call over to Ben Strain, Associate Vice President, Investor Relations. Please go ahead, Ben.

Thank you, Kevin. Good morning, and welcome to Insight's fourth quarter 2023 earnings conference call. Before we begin, I encourage everyone to go to the Investors section of our website to find the press release, related financial tables, and slides that follow today's discussion. On today's call, I'm joined by Irve, Barry, Pablo, Stephen, and Christiana. who will deliver our prepared remarks and will participate in the Q&A. I would like to point out that we'll be making forward-looking statements, which are based on our current expectations and beliefs. These statements are subject to certain risks and uncertainties, and our actual results may differ materially. I encourage you to consult the risk factors discussed in our SEC filings for additional detail. I will now hand the call over to Hervé.

Thank you, Ben, and good morning, everyone. So on Site 5, we achieved another strong year with 2023 product and royalty revenues growing 14% versus 2022 to reach $3.7 billion, continuing the strong performance we have delivered since 2018. We also achieved the symbolic milestone in the fourth quarter. Total product and royalty revenue reached $1 billion quarterly for the first time, driven by the continued growth of Jackal Frye, And successful launch of Opsalua. So moving to slide six. 2023 JakaFi net sales were 2.6 billion, growing 8% versus the prior year, with growth across all indications year over year. And Opsalua saw strong momentum in 2023, growing 162% to 338 million, driven by new patients and refills in both AD and vitiligo. We expect Opsalua to continue to be a key contributor to growth in the next year. On slide 7, our clinical pipeline has the ability to deliver transformative therapies to patients across multiple programs and provides the opportunity for 10 high-impact launches by 2030, as presented recently in San Francisco. Importantly, some of the programs highlighted on these slides are de-risk, as they are post-proof-of-concept, including Axatilimab, which has been submitted to the FDA for approval, Roxcrim in pediatric atopic dermatitis to be submitted to the FDA by mid-year, Roxcrim in HS, where we have randomized phase 2 data, and povercitinib, where we are in phase 3 in HS, vitiligo, and in PN, where we are on track to initiate a phase 3 study this year. Each of these programs have the potential to address a significant market and provide an opportunity to contribute to the top line before the end of the decade. I would also like now to highlight the recent transaction with Morphosis on slide 8. As described in the press release we issued last week, we entered into an asset purchase agreement with Morphosis, which gave us exclusive global rights for Tafasitamab, also known as Monjuvi or Minjuvi. This acquisition provides a number of benefits to Insight in the short term. First, going forward, we will now record all revenues from Monjuvie in the U.S., while eliminating Morphosis' share of the royalties ex-U.S. and all future milestones to Morphosis. Second, we will realize significant operating efficiencies and cost synergies in U.S. commercialization and in global development by removing redundant positions and redundant external expenses and by simplifying the off-chart. Therefore, in 2024, this deal will add to Insight's revenue and will have a limited impact on operating income. For the future, while the currently approved indication of relapsed refractory DLBCL will present a smaller opportunity for tafacitamab, we see upside potential in second-line follicular lymphoma and marginal zone lymphoma. We see three data expected later this year. And in first-line DLBCL, for which Phase III data are expected in 2025. These programs have been co-founded by Morphosis until now, and if positive, Insight will fully benefit from the upside from this indication. And this acquisition will be value-accredited for Insight in all scenarios. I will now turn the call over to Barry, who will discuss our commercial performance in more detail.