Incyte Corp’s Stock Surges After Announcing $2 Billion Share Buyback
Incyte Corp, a biopharmaceutical company, saw its stock price soar over 8 per cent on Monday morning following the announcement of a $2 billion share buyback plan. The company’s shares were trading at $57.27, up nearly 8 per cent in New York.
The Board of Directors at Incyte approved the share repurchase authorization of $2.0 billion, with a modified “Dutch Auction” tender offer to buy back shares of its common stock for up to $1.672 billion. CEO Hervé Hoppenot expressed confidence in the company’s future outlook, commercial product portfolio, and clinical development pipeline, stating that the current valuation of Incyte stock makes repurchases an attractive investment to enhance long-term shareholder value.
This news comes after Incyte reported first-quarter profits below Wall Street estimates, primarily due to weak sales of its blood cancer drug Jakafi. Despite a 1 per cent decline in Jakafi sales to $571.8 million, the company’s total revenue stood at $880.90 million, falling short of expectations. Revenue from royalties saw a 9 per cent increase to $126 million compared to the previous year.
Incyte also made significant moves in the first quarter, gaining worldwide exclusive global rights for Monjuvi, an FDA-approved treatment for certain blood cancers, and announcing the acquisition of Escient Pharmaceuticals, a clinical-stage company focused on developing treatments for various skin diseases.
Investors are closely watching Incyte Corp as it navigates through these developments and continues to make strategic moves in the biopharmaceutical industry.
