Incyte Corporation

Hello, and welcome to the Insight First Quarter 2024 Earnings Call. If anyone should require operator assistance, please press star zero on your telephone keypad. Our question and answer session will follow the formal presentation. You may be placed into question queue at any time by pressing star one on your telephone keypad. As a reminder, this conference is being recorded. 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 first quarter 2024 earnings conference call. Before I 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 call. On today's call, I'm joined by Irve, Pablo, Christiana, who will deliver our prepared remarks. Barry, Stephen, and Mateo will also be available for 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. Before I get into the quarterly results, I'm pleased to share that Matteo Trotta has recently joined Insight as general manager of our U.S. dermatology business unit, reporting to me. Matteo comes to us from Novartis, where he was responsible for the immunology business in the U.S., and he will be leading the U.S. dermatology team at Insight to continue to grow Opselora, prepare for the launches of Povercitinib and other promising IAI pipeline products in the coming years. Now turning to our Q1 result. Total revenue grew 9% in Q1 versus last year, and I will discuss in the next slide the details of the underlying demand growth for Jackify and Observa to clarify the performance of both brands in Q1. Starting with Jackify on slide 6. In the first quarter, Jackify net product revenue of $572 million does not fully reflect the demand growth as total patients increased 5% in the first quarter versus the same quarter last year, with growth driven by PV and GVHD. Sequential growth versus Q4 was also strong in all indications, as you see on the graph on the right. Jacket-side channel inventory reduction in the first quarter had a negative impact on net revenues of approximately $55 million. Based on the strong patient demand since this quarter and anticipated growth for the balance of the year, we are reiterating our full-year 2024 Jackify net revenue guidance of $2.69 to $2.75 billion. Turning to slide 7 and looking at Jackify total paid demand by indication during the first quarter of 2022, 2023, and 2024. As you can see, total paid demand growth in the top left corner continues to be strong. MF in the top right is consistent year after year, and the largest growth is coming from PV and GVHD. Additionally, JakaFi continues to maintain its leadership and market share in myelofibrosis. Based on market research, total patient market share and discontinuation rate have remained stable in the first line selling. over the past several months with virtually no impact from competitors, which has been consistent with our expectations. Moving to Obcelora. Total Obcelora net product revenues in the first quarter were 86 million, up 52%, when compared to the same quarter last year. The weekly prescription trend, as shown on the right of slide 8, reflects continued growth of Obcelora in both atopic dermatitis and vitiligo, with typical Q1 seasonality. U.S. total prescriptions for Opsalura grew 41% year over year, outpacing the total AD market, which grew 23%. The AD market, including Opsalura, was impacted by the change healthcare cyber attack, particularly in March. Importantly, we are beginning to see in April a rebound in field prescriptions to levels seen before the cyber attack. From an access perspective, we have seen early encouraging results since Obcelera moved in January to preferred position in the CVS network, as TRX growth within the CVS network outpaced growth seen in other plants. Moving to slide 9, as discussed in the past, we are on track to provide 10 high-impact launches by 2030. Importantly, many of the programs highlighted on this slide are de-risked, as they are post-Proof of Concept, including axatilimab, which has been submitted to the FDA for approval, roxolitinib cream in pediatric ED to be submitted to the FDA in Q3, and povacitinib, where we are in Phase III in HS and DT LIGO, and initiating a Phase III study in prurigo nodularis later this year. Moving to slide 10, in addition to our internal efforts to deliver multiple launches by 2030, we recently announced an agreement to acquire Essient Pharmaceutical for $750 million with cash on hand. This acquisition further strengthens our pipeline with two novel first-in-class medicines, EP262 and EP547, which have the potential to treat a broad range of inflammatory disorders. I will now turn the call over to Pablo.