Incyte Corporation

A question and answer session will follow the formal presentation. In the interest of time, we ask you to please limit yourselves to one question. You may be placed into question queue at any time by pressing star 1 on your telephone keypad. As a reminder, this conference is being recorded. It's now my pleasure to turn the conference over to Ben Strain, Associate Vice President, Investor Relations. Please go ahead, Ben.

Thank you, Kevin. Good morning and welcome to Insight's second quarter 2024 earnings conference call. Before we begin, I encourage everyone to go to the Investors section of our website, find the press release, related financial tables, and slides that follow today's discussion. On today's call, I'm joined by Irve, Pablo, and 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 turn the call over to Hervé.

Thank you, Ben, and good morning, everyone. So during the second quarter of 2024, we made significant progress across the business with strong performance on the commercial side, driven by JAKAFI and OPCERA, transformation of our pipeline, where we made important decisions on our clinical programs, and capital allocation where we closed the Essient acquisition and completed the large share repurchase. Looking at Q2 revenue, total revenue grew 9% year-over-year, exceeding $1 billion, while net product revenue grew 10% driven by the continued success of Jackathai and Opselora, which I will detail in the following slides. We continue to make strategic decisions that are transforming our clinical pipeline And during the second quarter, we closed the acquisition of Essien Pharmaceutical, which added two first-in-class medicines to our IAI portfolio. Additionally, we are intensifying our focus on and concentrating resources on those high-potential programs, which have the largest impact for patients and for Insight. We also recently completed a large $2 billion share repurchase, further highlighting our excitement and conviction in our clinical pipeline, and commercial business, while retaining a strong balance sheet for potential further business development activities. Over the last 12 months, our clinical pipeline has significantly advanced, and we are on track to deliver a number of best-in-class and or first-in-class differentiated medicines in areas where there are no or limited treatment options. When comparing our pipeline today on slide six to where we were just seven months ago, We have added potentially transformative clinical programs, including KRAS G12D, TGF-beta PD-1, MRGPRX2, and X4, and we have deprioritized some of the immuno-oncology programs, including TIM3 and LAX3 antibodies, LAX3 PD-1 bispecific, and the oral PD-L1 program. Pablo will describe this pipeline transformation in some details and will provide clarity on the potential timing of data availability. Moving to slide 7, Jakarta net product revenues were $706 million, up 3% year over year. Paid demand increased 9%. As a reminder, the second quarter of 2023 benefited by approximately $37 million from channel inventory, which explains the 3% growth of net sales versus the 9% growth of actual demand. Based on the strength in demand seen during the first half of the year and anticipated growth for the balance of the year, we are raising the bottom end of our full-year 2024 Jakarta Net Revenue Guidance to a new range of $2.71 billion to $2.75 billion. Turning to slide 8. and looking at Jackify total paid demand by indication during the first quarter of 2022, 23, and 24. As you can see, unit growth continues to be strong. MF is stable year over year, with modest growth in this quarter, and the largest growth coming from both PV and GVHD. Jackify continues to maintain its leadership in MF. Based on market research, discontinuation rates have remained stable in the first line selling over the past several months, with minimal impact from competitors. These trends have been consistent with our expectations. Moving to Obcelora on slide 9. Total Obcelora net product revenue in the second quarter were $122 million, up 52% when compared to the same quarter last year. The weekly prescription trend, as shown on the right of slide 9, reflects continued growth of Obcelora in both atopic dermatitis and vitiligo, and U.S. total prescription for Opselora grew 34% year-over-year, while refills grew 50% year-over-year. From an access perspective, we continue to see encouraging results since Opselora moved to earlier positions in certain commercial plans, demonstrating a positive impact to net sales following the improved access. Moving to slide 10, during the second quarter, we made continued progress on the reimbursement of Opselora in Europe. Obcelura is now reimbursed in Germany, France, Italy and Spain, and the 11 million in net sales during the second quarter were mostly driven by Germany and France. We expect Spain and Italy to start contributing to revenue beginning in Q3. As shown on slide 11, Obcelura was the first therapy to gain full reimbursement in France through a new process called Accès Direct. This process has accelerated patients' ability to obtain Opsilora while pricing negotiations were ongoing and were reflected in the increase in revenues seen in Q2. And I will now turn the call over to Pablo.