Incyte's annual sales forecast, released on Tuesday, fell short of Wall Street estimates, with its key growth driver, the drug Opzelura, also expected to underperform. This has intensified concerns about the pharmaceutical company's ability to offset the impact of the impending patent expiration for its top-selling drug, Jakafi. The company, headquartered in Wilmington, Delaware, saw its stock decline over 4% in pre-market trading. According to LSEG data, Incyte projected 2026 revenue to be between $4.77 billion and $4.94 billion, significantly lower than the average analyst estimate of $5.52 billion. This weak outlook highlights the pressure on Opzelura. With the core drug Jakafi's patent set to expire in 2028, Incyte had been counting on this dermatology treatment to support future growth. The company expects Opzelura to generate revenue of $750 million to $790 million in 2026, below the analyst estimate of $801.5 million. Despite a strong fourth-quarter performance—where Opzelura sales surged 28% to $207.3 million, beating expectations of $195.6 million—the company provided a cautious outlook. An analyst from Bank of Montreal noted, "The weaker-than-expected forecast for Opzelura suggests there is still considerable work to be done in 2026." Investors are closely watching whether this growth drug can fill the revenue gap once Jakafi's patent expires. Opzelura is used to treat vitiligo and atopic dermatitis in patients aged 12 and older. The company anticipates regulatory approval results in the second half of this year and plans to launch its moderate-to-severe atopic dermatitis indication in markets outside the U.S. by the end of 2026. Jakafi, Incyte's flagship drug for treating blood cancers such as myelofibrosis and polycythemia vera, remains the company's best-selling product. Incyte forecasts Jakafi sales of $3.22 billion to $3.27 billion for 2026, exceeding the analyst estimate of $3.09 billion. Fourth-quarter sales for Jakafi increased 7% to $828.2 million, surpassing market expectations. For the quarter ended December 31, Incyte reported adjusted earnings per share of $1.80, missing the analyst estimate of $1.93. Total revenue reached $1.51 billion, driven by a $100 million milestone payment, exceeding the expected $1.35 billion.
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