Incyte Corporation

Greetings and welcome to the Insight third quarter 2026 earnings call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. You may be placed into question queue at any time by pressing star 1 on your telephone keypad. We ask you to please ask one question then return to the queue. As a reminder, this conference is being recorded. If anyone should require operator assistance, please press star 0 on your telephone keypad. It's now my pleasure to turn the call over to Alexis Smith, Vice President, Head of Investor Relations. Please go ahead, Alexis.

Thank you. Good morning and welcome to Insight's third quarter 2026 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 Bill, Pablo, and Suzy, who will deliver our prepared remarks. Steven, Dave, and Mohamed will also be available for Q&A. I would like to point out that we will 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 FCC filings for additional detail. I'll now hand the call over to Bill.

Thanks, Alexis, and good morning, everyone. As we look at the first nine months of the year, we've made meaningful progress against a strategy we laid out for Insight. That strategy has two fundamental components, scaling the core business beyond Jacobi and advancing our late-stage pipeline to drive the next phase of growth. The core business is the foundation that gives us a scale to navigate the 29 transition and fund R&D. Layering the pipeline on top of that gives us the opportunity to build a significantly larger company over the next decade. We now have several compounds in Phase III development, including a mutant Cal-R antibody for MPNs, a Pro-GS modulator for von Willebrand's disease, a G12D inhibitor for pancreatic cancer, a TGF-beta by PD-1 bispecific antibody in colorectal cancer, a CDK2 inhibitor for ovarian cancer, and a JAK inhibitor currently under regulatory review in HS. We have increasing confidence in the biology behind these programs and believe we've taken Thank you very much. and if we deliver against them, we believe the value creation potential is substantial. And that is how we should ultimately be judged. Now we'll frame the quarter around three themes. First, key business performance. Every product grew year over year. Jackify had another strong quarter with growth across all indications and sales from our core business excluding Jackify increased 37% from prior year. Second, we achieved important regulatory milestones, including the approval and launch of Opsalora for moderate AD in the EU in the third quarter. In parallel, the NDA reviews for Monjuvi and frontline DLVCL and Corvacitinib in moderate to severe HS are well underway. Third, we continued to advance our late-stage pipeline, including trial initiations and expansion efforts for key programs like G12D, TGF beta by PDP, I'll now cover the quarter in more detail and then hand it to Pablo to expand on the progress across our pipeline. Total revenue for the quarter was $1.56 billion, representing growth of 14% year-over-year. Total net sales in the quarter were $1.32 billion, up 14% versus the prior year. Growth was broad-based and led by Opsalora and our hematology and oncology franchise, while Jackify remained a significant contributor. Jackify franchised net sales in the third quarter were $827 million, up 4% year-over-year. Underlying demand remained strong, increasing 12% with growth across all indications led by PV. Net sales growth reflects expected pricing dynamics during the quarter, including the impact of the CMS generous model. Formula coverage is expected to exceed 80% by year end. The combination of increasing uptake here and expanding market access keeps us on track to achieve our full year end target of roughly $50 million in XR net sales and supports our goal of retaining 10 to 30% of the Jackify business by 2029. Now to our core business, XJackify, which is one of the clearest indicators of transitioning the company. Net sales from our core business, excluding Jackify, were $490 million, representing a 30% increase versus prior year, reflecting contributions from key growth brands, namely Opsalora, Nick Timbo, Zionist, and Monjuvi. The growth across brands and geographies strengthens the outlook for the company as we see this business growing to $3 to $4 billion by 2030. Opsalor net sales were $255 million in the quarter, an increase of 36% over prior year. Net sales were driven by increased demand across geographies and favorable U.S. pricing dynamics resulting from the agreement with CMS related to the Opsalor line extension. On a pro forma basis, which adjusts the third quarter of 2025 for the favorable impact of the Medicaid line extension settlement, total Opsalor net sales increased 21% over the prior year period. Now a breakdown of the U.S. and international performance. U.S. net sales in the third quarter were $208 million, up 45% year-over-year.