Collins Stewart: Incyte's Jakafi Knocks 4Q Sales Out of the Park

In a research report published earlier today by Collins Stewart, Incyte Corporation's

4Q11 total revenue of $28.9M was above consensus of $25.7M and CSe of $26.8M. Collins Stewart attributed much of the success to Jakafi: “Gross Jakafi revenue shipped to patients (INCY uses the sell-through method for revenue recognition) was $2.3M ($0.3M in gross-to-net adjustments) while gross revenue from Jakafi sent to specialty pharmacies was $4.9M (resulting in $2.6M in gross deferred revenue and $2.3M net). INCY also provided FY12 financial guidance, expecting amortization revenue of $67M (excludes Jakafi revenue and potential milestones), R&D expense of $215M-$225M (includes $25M-$28M in stock-based comp), SG&A expense of $82M-$88M (including stock-based comp of $13M-$15M) and interest expense of ~$46M (includes non-cash expense of ~$27M related to amortization of the 4.75% Convertible Note). We expect INCY shares to trade higher on today's Jakafi sales numbers and a positive launch outlook.” Collins Stewart reiterates its Buy rating and $22 PT on Incyte, which closed yesterday at $18.27.