SEC EDGAR · 10-Q
10-Q – 2026-04-28 – incy-20260331.htm

318920 tecken · 2 HTML-del(ar)
Fulltext som ren TXT · Öppna originalkällan
Automatiskt nyckeltalsindex

Detta är sökträffar och textkontext, inte verifierade eller normaliserade redovisningsvärden.
Omsättning
Revenues: | Net sales $ 1,104,484 $ 922,274 | Product royalty revenues 151,192 130,624
Costs, expenses and other: | Cost of sales (including definite-lived intangible amortization) 104,523 73,188
In September 2025, the FASB issued ASU No. 2025-06, “ Intangibles - Goodwill and Other - Internal-Use (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. ” This amended guidance applies to all entities and serves to modernize the accounting for software costs that are accounted for under Subtopic 305-40, Intangibles - Goodwill and Other - Internal-Use Software (referred to as “internal-use software”). The amendments in this update are effective for all entities | In September 2025, the FASB issued ASU No. 2025-07, “ Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract. ” This amended guidance applies to all entities and refines the scope of derivative accounting and clarifies rules for share-based noncash consideration in revenue contracts. Specifically, this update is intended to address | In December 2025, the FASB issued ASU No. 2025-10, “ Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities. ” This accounting standard update establishes specific rules for the recognition, measurement, and presentation of government grants received by business entities. For public business entities, this amended guidance is applicable for fiscal years beginning after December 15, 2028, including interim periods within those fiscal years. Early adoption is
Note 3. Revenues | Revenues are recognized under guidance within ASC 606, Revenue from Contracts with Customers . The following table presents our disaggregated revenue for the periods presented (in thousands):
2026 2025 | JAKAFI net sales $ 757,755 $ 709,412 | OPZELURA net sales 143,015 118,705
JAKAFI net sales $ 757,755 $ 709,412 | OPZELURA net sales 143,015 118,705 | ICLUSIG net sales 35,463 29,544
OPZELURA net sales 143,015 118,705 | ICLUSIG net sales 35,463 29,544 | PEMAZYRE net sales 22,543 18,440
ICLUSIG net sales 35,463 29,544 | PEMAZYRE net sales 22,543 18,440 | MINJUVI/MONJUVI net sales 49,227 29,551
Rörelseresultat
Acquisition-related contingent consideration, which consists of our future royalty obligations to ARIAD/Takeda, was recorded on the acquisition date, June 1, 2016, at the estimated fair value of the obligation, in accordance with the acquisition method of accounting. The change in fair value of the acquisition-related contingent consideration for the three months ended March 31, 2026 and March 31, 2025 was a gain of $0.2 million and loss of $11.6 million, respectively, which is recorded in (gain | Non-operating Income and Expenses | Interest income
Periodens resultat
Provision for income taxes 40,270 75,987 | Net income $ 303,330 $ 158,203
Net income per share: | Basic $ 1.52 $ 0.82
Shares used in computing net income per share: | Basic 199,343 193,712
2026 2025 | Net income $ 303,330 $ 158,203
Other comprehensive loss — — ( 3,148 ) — ( 3,148 ) | Net income — — — 303,330 303,330 | Balances at March 31, 2026 $ 200 $ 5,083,234 $ 22,314 $ 517,099 $ 5,622,847
Other comprehensive income — — 6,883 — 6,883 | Net income — — — 158,203 158,203 | Balances at March 31, 2025 $ 193 $ 4,588,286 $ ( 6,238 ) $ ( 914,678 ) $ 3,667,563
Cash flows from operating activities: | Net income $ 303,330 $ 158,203 | Adjustments to reconcile net income to net cash provided by operating activities:
Net income $ 303,330 $ 158,203 | Adjustments to reconcile net income to net cash provided by operating activities: | Depreciation and amortization 23,802 22,362
Kassaflöde
Cash, cash equivalents, and restricted cash at end of period $ 3,462,950 $ 1,943,387 | Supplemental Schedule of Cash Flow Information | Income taxes paid, net of (refunds) $ ( 8,787 ) $ 844
The enactment of the One Big Beautiful Bill Act in July 2025 modified key provisions of the Tax Cuts and Jobs Act of 2017. The change related to the expensing of domestic research costs materially reduced our U.S. tax liabilities in 2025 and we expect a similar impact in 2026. We intend to continue to evaluate the impacts of these provisions for our tax return filing. | We believe that our cash flow from operations, together with our cash, cash equivalents and marketable securities and funds available under our revolving credit facility, will be adequate to satisfy our capital needs for the foreseeable future. Our cash requirements depend on numerous factors, including our expenditures in connection with our drug discovery and development programs and commercialization operations; expenditures in connection with litigation or other legal proceedings; costs for
To the extent we seek to augment our existing cash resources and cash flow from operations to satisfy our cash requirements for future acquisitions or other strategic purposes, we expect that additional funding can be obtained through equity or debt financings or from other sources. The sale of equity or convertible debt securities in the future may be dilutive to our stockholders, and may provide for rights, preferences or privileges senior to those of our holders of common stock. Debt financin
Likvida medel
Current assets: | Cash and cash equivalents $ 3,461,114 $ 3,097,817 | Marketable securities—available-for-sale (amortized cost $ 555,202 and $ 480,793 as of March 31, 2026 and December 31, 2025, respectively; allowance for credit losses $ 0 as of March 31, 2026 and December 31, 2025)
March 31, 2026 | Cash and cash equivalents $ 3,461,114 $ — $ — $ 3,461,114 | Debt securities (government) — 554,711 — 554,711
December 31, 2025 | Cash and cash equivalents $ 3,097,817 $ — $ — $ 3,097,817 | Debt securities (government) — 482,787 — 482,787
Nettoskuld
Net income $ 303,330 $ 158,203 | Adjustments to reconcile net income to net cash provided by operating activities: | Depreciation and amortization 23,802 22,362
Accrued and other liabilities ( 84,725 ) 74,842 | Net cash provided by operating activities 369,351 266,067 | Cash flows from investing activities:
Maturities of marketable securities 69,700 45,494 | Net cash (used in) provided by investing activities ( 88,203 ) 1,097 | Cash flows from financing activities:
Payment of contingent consideration ( 4,963 ) ( 5,371 ) | Net cash provided by (used in) financing activities 84,822 ( 12,676 ) | Effect of exchange rates on cash, cash equivalents, and restricted cash ( 2,689 ) ( 552 )
• our ability to obtain additional capital when needed; | • fluctuations in net cash provided and used by operating, financing and investing activities;
At March 31, 2026, we had available cash, cash equivalents and marketable securities of $4.0 billion. Our cash and marketable securities balances are primarily held in a variety of interest-bearing instruments, including money market accounts and U.S. government debt securities. Available cash is invested in accordance with our investment policy’s primary objectives of liquidity, safety of principal and diversity of investments. | Net cash provided by operating activities for the three months ended March 31, 2026 and 2025 was $369.4 million and $266.1 million, respectively. The increase in cash provided by operating activities was due primarily to the increased net income for the 2026 period. | Our investing activities, other than purchases and maturities of marketable securities, have consisted predominantly of capital expenditures. Net cash used in investing activities was $88.2 million for the three months ended March 31, 2026, which primarily represented purchases of marketable securities of $142.7 million, offset in part by maturities of marketable securities of $69.7 million. Net cash provided by investing activities was $1.1 million for the three months ended March 31, 2025, whi
Net cash provided by operating activities for the three months ended March 31, 2026 and 2025 was $369.4 million and $266.1 million, respectively. The increase in cash provided by operating activities was due primarily to the increased net income for the 2026 period. | Our investing activities, other than purchases and maturities of marketable securities, have consisted predominantly of capital expenditures. Net cash used in investing activities was $88.2 million for the three months ended March 31, 2026, which primarily represented purchases of marketable securities of $142.7 million, offset in part by maturities of marketable securities of $69.7 million. Net cash provided by investing activities was $1.1 million for the three months ended March 31, 2025, whi | Net cash provided by financing activities was $84.8 million for the three months ended March 31, 2026, primarily representing proceeds from issuance of common stock under our stock plans. Net cash used in financing activities was $12.7 million for the three months ended March 31, 2025, primarily representing cash paid to ARIAD/Takeda for contingent consideration and cash paid for tax withholdings related to restricted and performance share vesting.
Our investing activities, other than purchases and maturities of marketable securities, have consisted predominantly of capital expenditures. Net cash used in investing activities was $88.2 million for the three months ended March 31, 2026, which primarily represented purchases of marketable securities of $142.7 million, offset in part by maturities of marketable securities of $69.7 million. Net cash provided by investing activities was $1.1 million for the three months ended March 31, 2025, whi | Net cash provided by financing activities was $84.8 million for the three months ended March 31, 2026, primarily representing proceeds from issuance of common stock under our stock plans. Net cash used in financing activities was $12.7 million for the three months ended March 31, 2025, primarily representing cash paid to ARIAD/Takeda for contingent consideration and cash paid for tax withholdings related to restricted and performance share vesting. | In August 2021, we entered into a $500.0 million, senior unsecured revolving credit facility, which was subsequently amended in May 2023 and June 2024 (as amended, the “Credit Agreement”). The June 2024 amendment to the Credit Agreement extended the maturity date of the revolving credit facility from August 2024 to June 2027. We may increase the maximum revolving commitments or add one or more incremental term loan facilities, subject to obtaining commitments from any participating lenders and c
Eget kapital
Condensed Consolidated Statements of Stockholders’ Equity | 6
LIABILITIES AND STOCKHOLDERS’ EQUITY | Current liabilities:
Stockholders’ equity: | Preferred Stock, $ 0.001 par value; 5,000,000 shares authorized; none issued or outstanding
Retained earnings 517,099 213,769 | Total stockholders’ equity 5,622,847 5,167,478 | Total liabilities and stockholders’ equity $ 7,339,113 $ 6,957,973
Total stockholders’ equity 5,622,847 5,167,478 | Total liabilities and stockholders’ equity $ 7,339,113 $ 6,957,973
INCYTE CORPORATION | CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY | (unaudited, in thousands, except number of shares)
Basis of presentation | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The condensed consolidated balance sheet as of March 31, 2026, and the condensed consolidated statements of operations, comprehensive income (loss), stockholders’ equity and cash flows for the three months en | Although we believe that the disclosures in these financial statements are adequate to make the information presented not misleading, certain information and footnote information normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”).
Antal aktier
CONDENSED CONSOLIDATED BALANCE SHEETS | (in thousands, except number of shares and par value)
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY | (unaudited, in thousands, except number of shares)
Weighted average common shares outstanding 199,343 193,712
Weighted average common shares outstanding 199,343 193,712 | Dilutive stock options and awards 7,487 4,485
Dilutive stock options and awards 7,487 4,485 | Weighted average shares used to compute diluted net income per share 206,830 198,197
Antal anställda
Note 11. Stock Compensation | 2010 Stock Incentive Plan. Under our Amended and Restated 2010 Stock Incentive Plan, as amended (the “2010 Stock Plan”), we may issue common stock to employees, non-employee directors, consultants, and scientific advisors. Awards under the 2010 Stock Plan include stock options, restricted stock units (“RSUs”) and performance shares (“PSUs”). A total of 74,953,475 shares of common stock are reserved for issuance pursuant to the 2010 Stock Plan. | 2024 Inducement Stock Incentive Plan. Our Board of Directors has adopted the Incyte Corporation 2024 Inducement Stock Incentive Plan, as amended (the “2024 Inducement Plan”). In reliance on Nasdaq Marketplace Rule 5635(c)(4), stockholder approval was not obtained. A total of 2,000,000 shares of common stock are reserved for issuance pursuant to the 2024 Inducement Plan.
The risk-free interest rate is derived from the U.S. Federal Reserve rate in effect at the time of grant. The expected life calculation is based on the observed and expected time to the exercise of options by our employees based on historical exercise patterns for similar type options. Expected volatility is based on the historical volatility of our common stock over the period commensurate with the expected life of the options. A dividend yield of zero is assumed based on the fact that we have | Option activity under our 2010 Stock Plan and 2024 Inducement Plan was as follows:
RSUs and PSUs are granted to our employees at the share price on the date of grant. Each RSU represents the right to acquire one share of our common stock. Each RSU granted in connection with our annual equity awards will vest 25 % annually over four years , while each RSU granted as outstanding merit awards or as part of retention award programs will vest in a single installment at the end of four years , subject to customary retirement provisions that may accelerate the requisite service perio | We grant PSUs with performance and/or service-based milestones with graded and/or cliff vesting over three to six years . The shares of our common stock into which each PSU may convert is subject to a multiplier based on the level at which the financial, developmental and market performance conditions are achieved over the service period. Compensation expense for PSUs with financial and developmental performance conditions is recorded over the estimated service period for each milestone when the
Defined Contribution Plans | We have a defined contribution plan qualified under Section 401(k) of the Internal Revenue Code covering all U.S. employees and defined contribution plans for other Incyte employees in Europe and Japan. Employees may contribute a portion of their compensation, which is then matched by us, subject to certain limitations. Defined contribution expense for the three months ended March 31, 2026 and March 31, 2025 was $ 6.4 million and $ 5.8 million, respectively. | Defined Benefit Pension Plans
Defined Benefit Pension Plans | We have defined benefit pension plans for our employees in Europe which provide benefits to employees upon retirement, death or disability. The assets of the pension plans are held in collective investment accounts represented by the cash surrender value of an insurance policy and are classified as Level 2 within the fair value hierarchy.
The accounting policies for our single operating segment are the same as those described in the summary of significant accounting policies in our Annual Report on Form 10-K for the year ended December 31, 2025. Our single operating segment generates net sales from the development and commercialization of oncology and dermatology pharmaceutical products, which are developed by our research and development department, as well as from product royalties, milestone and contract revenues from the out- | For our segment, the chief operating decision maker uses net income or loss, that also is reported on the condensed consolidated statements of operations as consolidated net income, to allocate resources (including employees, property, and financial resources), predominantly during the annual budget and forecasting process. The chief operating decision maker also uses consolidated net income or loss, along with non-financial inputs and qualitative information, to evaluate our performance, establ
• As most of our drug discovery and development operations are conducted at our headquarters in Wilmington, Delaware, the loss of access to this facility would negatively impact our business. | • The loss of the services of any of our key employees or our inability to attract and retain additional personnel would affect our ability to expand our drug discovery and development programs and achieve our objectives. | • If we fail to manage our growth effectively, our ability to develop and commercialize products could suffer.
Cost of sales includes all product related costs, reserves for obsolescence, employee personnel costs, including stock compensation, for those employees dedicated to the production of our commercial products, royalties and profit sharing under our collaborative agreements and amortization of our licensed intellectual property rights for ICLUSIG and capitalized milestone payments . The increase in cost of sales for the three months ended March 31, 2026 as compared to the corresponding period in 2 | Operating Expenses
Fulltext

Dokumentet är delat för att hålla varje sida lätt att hämta. Del 1 · Del 2
incy-20260331 12-31 2026 Q1 0000879169 false P3Y 365 365 366 xbrli:shares iso4217:USD iso4217:USD xbrli:shares incy:segment xbrli:pure 0000879169 2026-01-01 2026-03-31 0000879169 2026-04-21 0000879169 2026-03-31 0000879169 2025-12-31 0000879169 us-gaap:ProductMember 2026-01-01 2026-03-31 0000879169 us-gaap:ProductMember 2025-01-01 2025-03-31 0000879169 us-gaap:RoyaltyMember 2026-01-01 2026-03-31 0000879169 us-gaap:RoyaltyMember 2025-01-01 2025-03-31 0000879169 incy:MilestoneAndContractRevenuesMember 2026-01-01 2026-03-31 0000879169 incy:MilestoneAndContractRevenuesMember 2025-01-01 2025-03-31 0000879169 2025-01-01 2025-03-31 0000879169 us-gaap:CommonStockMember 2025-12-31 0000879169 us-gaap:AdditionalPaidInCapitalMember 2025-12-31 0000879169 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-12-31 0000879169 us-gaap:RetainedEarningsMember 2025-12-31 0000879169 us-gaap:CommonStockMember 2026-01-01 2026-03-31 0000879169 us-gaap:AdditionalPaidInCapitalMember 2026-01-01 2026-03-31 0000879169 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2026-01-01 2026-03-31 0000879169 us-gaap:RetainedEarningsMember 2026-01-01 2026-03-31 0000879169 us-gaap:CommonStockMember 2026-03-31 0000879169 us-gaap:AdditionalPaidInCapitalMember 2026-03-31 0000879169 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2026-03-31 0000879169 us-gaap:RetainedEarningsMember 2026-03-31 0000879169 us-gaap:CommonStockMember 2024-12-31 0000879169 us-gaap:AdditionalPaidInCapitalMember 2024-12-31 0000879169 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-12-31 0000879169 us-gaap:RetainedEarningsMember 2024-12-31 0000879169 2024-12-31 0000879169 us-gaap:AdditionalPaidInCapitalMember 2025-01-01 2025-03-31 0000879169 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-01-01 2025-03-31 0000879169 us-gaap:RetainedEarningsMember 2025-01-01 2025-03-31 0000879169 us-gaap:CommonStockMember 2025-03-31 0000879169 us-gaap:AdditionalPaidInCapitalMember 2025-03-31 0000879169 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-03-31 0000879169 us-gaap:RetainedEarningsMember 2025-03-31 0000879169 2025-03-31 0000879169 incy:JAKAFIMember 2026-01-01 2026-03-31 0000879169 incy:JAKAFIMember 2025-01-01 2025-03-31 0000879169 incy:OPZELURAMember 2026-01-01 2026-03-31 0000879169 incy:OPZELURAMember 2025-01-01 2025-03-31 0000879169 incy:ICLUSIGMember 2026-01-01 2026-03-31 0000879169 incy:ICLUSIGMember 2025-01-01 2025-03-31 0000879169 incy:PEMAZYREMember 2026-01-01 2026-03-31 0000879169 incy:PEMAZYREMember 2025-01-01 2025-03-31 0000879169 incy:MINJUVIMONJUVIMember 2026-01-01 2026-03-31 0000879169 incy:MINJUVIMONJUVIMember 2025-01-01 2025-03-31 0000879169 incy:NIKTIMVOMember 2026-01-01 2026-03-31 0000879169 incy:NIKTIMVOMember 2025-01-01 2025-03-31 0000879169 incy:ZYNYZMember 2026-01-01 2026-03-31 0000879169 incy:ZYNYZMember 2025-01-01 2025-03-31 0000879169 incy:JAKAVIRoyaltyRevenuesMember 2026-01-01 2026-03-31 0000879169 incy:JAKAVIRoyaltyRevenuesMember 2025-01-01 2025-03-31 0000879169 incy:OLUMIANTRoyaltyRevenuesMember 2026-01-01 2026-03-31 0000879169 incy:OLUMIANTRoyaltyRevenuesMember 2025-01-01 2025-03-31 0000879169 incy:TABRECTARoyaltyRevenuesMember 2026-01-01 2026-03-31 0000879169 incy:TABRECTARoyaltyRevenuesMember 2025-01-01 2025-03-31 0000879169 incy:OtherProductRoyaltyRevenuesMember 2026-01-01 2026-03-31 0000879169 incy:OtherProductRoyaltyRevenuesMember 2025-01-01 2025-03-31 0000879169 incy:CorporateAndGovernmentDebtSecuritiesMember 2026-03-31 0000879169 incy:CorporateAndGovernmentDebtSecuritiesMember 2025-12-31 0000879169 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2026-03-31 0000879169 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2026-03-31 0000879169 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2026-03-31 0000879169 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember 2026-03-31 0000879169 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2025-12-31 0000879169 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2025-12-31 0000879169 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2025-12-31 0000879169 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember 2025-12-31 0000879169 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2025-12-31 0000879169 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2026-01-01 2026-03-31 0000879169 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2026-03-31 0000879169 incy:AriadPharmaceuticalsMember us-gaap:LiabilityMember 2016-06-01 2016-06-01 0000879169 incy:AriadPharmaceuticalsMember us-gaap:LiabilityMember us-gaap:MeasurementInputDiscountRateMember 2016-06-01 0000879169 incy:AriadPharmaceuticalsMember us-gaap:LiabilityMember us-gaap:MeasurementInputDiscountRateMember 2025-12-31 0000879169 incy:AriadPharmaceuticalsMember us-gaap:LiabilityMember us-gaap:MeasurementInputDiscountRateMember 2026-03-31 0000879169 incy:AriadPharmaceuticalsMember 2026-01-01 2026-03-31 0000879169 incy:AriadPharmaceuticalsMember 2025-01-01 2025-12-31 0000879169 incy:NovartisAndLillyMember us-gaap:CreditConcentrationRiskMember us-gaap:AccountsReceivableMember 2026-01-01 2026-03-31 0000879169 incy:NovartisAndLillyMember us-gaap:CreditConcentrationRiskMember us-gaap:AccountsReceivableMember 2025-01-01 2025-12-31 0000879169 incy:CustomerAMember us-gaap:CustomerConcentrationRiskMember us-gaap:SalesRevenueProductLineMember 2026-01-01 2026-03-31 0000879169 incy:CustomerAMember us-gaap:CustomerConcentrationRiskMember us-gaap:SalesRevenueProductLineMember 2025-01-01 2025-03-31 0000879169 incy:CustomerBMember us-gaap:CustomerConcentrationRiskMember us-gaap:SalesRevenueProductLineMember 2026-01-01 2026-03-31 0000879169 incy:CustomerBMember us-gaap:CustomerConcentrationRiskMember us-gaap:SalesRevenueProductLineMember 2025-01-01 2025-03-31 0000879169 incy:CustomerCMember us-gaap:CustomerConcentrationRiskMember us-gaap:SalesRevenueProductLineMember 2026-01-01 2026-03-31 0000879169 incy:CustomerCMember us-gaap:CustomerConcentrationRiskMember us-gaap:SalesRevenueProductLineMember 2025-01-01 2025-03-31 0000879169 incy:CustomerDMember us-gaap:CustomerConcentrationRiskMember us-gaap:SalesRevenueProductLineMember 2026-01-01 2026-03-31 0000879169 incy:CustomerDMember us-gaap:CustomerConcentrationRiskMember us-gaap:SalesRevenueProductLineMember 2025-01-01 2025-03-31 0000879169 incy:CustomerEMember us-gaap:CustomerConcentrationRiskMember us-gaap:SalesRevenueProductLineMember 2026-01-01 2026-03-31 0000879169 incy:CustomerEMember us-gaap:CustomerConcentrationRiskMember us-gaap:SalesRevenueProductLineMember 2025-01-01 2025-03-31 0000879169 incy:CustomerFMember us-gaap:CustomerConcentrationRiskMember us-gaap:SalesRevenueProductLineMember 2026-01-01 2026-03-31 0000879169 incy:CustomerFMember us-gaap:CustomerConcentrationRiskMember us-gaap:SalesRevenueProductLineMember 2025-01-01 2025-03-31 0000879169 incy:CustomerABCDEFMember us-gaap:CreditConcentrationRiskMember us-gaap:AccountsReceivableMember 2026-01-01 2026-03-31 0000879169 incy:CustomerABCDEFMember us-gaap:CreditConcentrationRiskMember us-gaap:AccountsReceivableMember 2025-01-01 2025-12-31 0000879169 srt:MinimumMember 2026-01-01 2026-03-31 0000879169 srt:MaximumMember 2026-01-01 2026-03-31 0000879169 incy:NovartisMember srt:MaximumMember incy:DevelopmentMilestonesMember 2009-11-01 2009-11-30 0000879169 incy:NovartisMember srt:MaximumMember incy:RegulatoryMilestonesMember 2009-11-01 2009-11-30 0000879169 incy:NovartisMember srt:MaximumMember incy:CommercializationMilestonesMember 2009-11-01 2009-11-30 0000879169 incy:GVHDMember incy:NovartisMember srt:MaximumMember incy:DevelopmentAndRegulatoryMilestonesMember 2009-11-01 2009-11-30 0000879169 incy:NovartisMember incy:DevelopmentMilestonesMember 2009-11-01 2026-03-31 0000879169 incy:NovartisMember incy:RegulatoryMilestonesMember 2009-11-01 2026-03-31 0000879169 incy:NovartisMember incy:CommercializationMilestonesMember 2009-11-01 2026-03-31 0000879169 incy:JAKAFIMember incy:NovartisMember 2025-05-11 2025-05-11 0000879169 incy:JAKAFIMember country:US incy:NovartisMember 2026-01-01 2026-03-31 0000879169 incy:JAKAFIMember country:US incy:NovartisMember 2025-01-01 2025-03-31 0000879169 incy:JAKAFIMember incy:NovartisMember 2025-01-01 2025-03-31 0000879169 incy:JAKAFIMember country:US incy:NovartisMember 2026-03-31 0000879169 incy:JAKAFIMember country:US incy:NovartisMember 2025-12-31 0000879169 incy:JakaviMember incy:NovartisMember srt:MinimumMember 2026-01-01 2026-03-31 0000879169 incy:JakaviMember incy:NovartisMember srt:MaximumMember 2026-01-01 2026-03-31 0000879169 incy:JAKAVIMember incy:NovartisMember 2026-01-01 2026-03-31 0000879169 incy:JAKAVIMember incy:NovartisMember 2025-01-01 2025-03-31 0000879169 incy:TABRECTAMember incy:NovartisMember 2026-01-01 2026-03-31 0000879169 incy:TABRECTAMember incy:NovartisMember 2025-01-01 2025-03-31 0000879169 incy:EliLillyMember srt:MaximumMember incy:DevelopmentMilestonesMember 2009-12-01 2009-12-31 0000879169 incy:EliLillyMember srt:MaximumMember incy:RegulatoryMilestonesMember 2009-12-01 2009-12-31 0000879169 incy:EliLillyMember srt:MaximumMember incy:CommercializationMilestonesMember 2009-12-01 2009-12-31 0000879169 incy:EliLillyMember incy:DevelopmentMilestonesMember 2009-12-01 2026-03-31 0000879169 incy:EliLillyMember incy:RegulatoryMilestonesMember 2009-12-01 2026-03-31 0000879169 incy:EliLillyMember incy:CommercializationMilestonesMember 2009-12-01 2026-03-31 0000879169 incy:EliLillyMember 2009-12-01 2026-03-31 0000879169 incy:OLUMIANTMember incy:EliLillyMember 2026-01-01 2026-03-31 0000879169 incy:OLUMIANTMember incy:EliLillyMember 2025-01-01 2025-03-31 0000879169 incy:MacroGenicsMember incy:DevelopmentalAndRegulatoryMilestonesMember 2017-10-01 2026-03-31 0000879169 incy:MacroGenicsMember srt:MaximumMember incy:DevelopmentAndRegulatoryMilestonesMember 2026-03-31 0000879169 incy:MacroGenicsMember srt:MaximumMember incy:CommercializationMilestonesMember 2026-03-31 0000879169 srt:MinimumMember incy:MacroGenicsMember 2026-01-01 2026-03-31 0000879169 srt:MaximumMember incy:MacroGenicsMember 2026-01-01 2026-03-31 0000879169 country:US incy:SyndaxPharmaceuticalsIncMember incy:IncyteMember 2021-09-01 2021-09-30 0000879169 country:US incy:SyndaxPharmaceuticalsIncMember incy:SyndaxPharmaceuticalsIncMember 2021-09-01 2021-09-30 0000879169 incy:SyndaxPharmaceuticalsIncMember 2021-09-01 2026-03-31 0000879169 incy:SyndaxPharmaceuticalsIncMember srt:MaximumMember incy:DevelopmentAndRegulatoryMilestonesMember 2026-03-31 0000879169 incy:SyndaxPharmaceuticalsIncMember srt:MaximumMember incy:CommercializationMilestonesMember 2026-03-31 0000879169 incy:InvestmentInSyndaxMember 2026-03-31 0000879169 incy:InvestmentInSyndaxMember 2025-12-31 0000879169 incy:InvestmentInSyndaxMember 2026-01-01 2026-03-31 0000879169 incy:InvestmentInSyndaxMember 2025-01-01 2025-03-31 0000879169 incy:SyndaxPharmaceuticalsIncMember 2026-01-01 2026-03-31 0000879169 incy:SyndaxPharmaceuticalsIncMember 2025-01-01 2025-03-31 0000879169 incy:SyndaxPharmaceuticalsIncMember incy:IncyteMember 2026-01-01 2026-03-31 0000879169 incy:SyndaxPharmaceuticalsIncMember incy:IncyteMember 2025-01-01 2025-03-31 0000879169 incy:AxatilimabDevelopmentActivitiesMember incy:SyndaxPharmaceuticalsIncMember 2026-03-31 0000879169 incy:AxatilimabDevelopmentActivitiesMember incy:SyndaxPharmaceuticalsIncMember 2025-12-31 0000879169 country:US incy:SyndaxPharmaceuticalsIncMember 2026-01-01 2026-03-31 0000879169 incy:AxatilimabCommercializationActivitiesMember country:US incy:SyndaxPharmaceuticalsIncMember 2026-03-31 0000879169 incy:AxatilimabCommercializationActivitiesMember country:US incy:SyndaxPharmaceuticalsIncMember 2025-12-31 0000879169 incy:PreludeMember 2025-11-01 2025-11-30 0000879169 incy:InvestmentInPreludeMember 2025-11-01 2025-11-30 0000879169 incy:InvestmentInPreludeMember 2025-11-30 0000879169 incy:PreludeMember 2025-10-01 2025-12-31 0000879169 incy:InvestmentInPreludeMember 2026-01-01 2026-03-31 0000879169 incy:InvestmentInPreludeMember 2026-03-31 0000879169 incy:InvestmentInPreludeMember 2025-12-31 0000879169 incy:PreludeMember srt:MaximumMember incy:ClinicalAndRegulatoryMilestonesAndSingleDigitRoyaltiesOnGlobalNetSalesMember 2025-11-30 0000879169 us-gaap:OfficeEquipmentMember 2026-03-31 0000879169 us-gaap:OfficeEquipmentMember 2025-12-31 0000879169 us-gaap:EquipmentMember 2026-03-31 0000879169 us-gaap:EquipmentMember 2025-12-31 0000879169 us-gaap:ComputerEquipmentMember 2026-03-31 0000879169 us-gaap:ComputerEquipmentMember 2025-12-31 0000879169 us-gaap:LandMember 2026-03-31 0000879169 us-gaap:LandMember 2025-12-31 0000879169 incy:BuildingAndLeaseholdImprovementsMember 2026-03-31 0000879169 incy:BuildingAndLeaseholdImprovementsMember 2025-12-31 0000879169 incy:OperatingLeaseRightOfUseAssetsMember 2026-03-31 0000879169 incy:OperatingLeaseRightOfUseAssetsMember 2025-12-31 0000879169 us-gaap:ConstructionInProgressMember 2026-03-31 0000879169 us-gaap:ConstructionInProgressMember 2025-12-31 0000879169 2024-05-01 2024-05-31 0000879169 us-gaap:ConstructionInProgressMember 2024-06-01 2025-12-31 0000879169 2025-01-01 2025-12-31 0000879169 us-gaap:AccumulatedTranslationAdjustmentMember 2025-12-31 0000879169 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2025-12-31 0000879169 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2025-12-31 0000879169 us-gaap:AccumulatedTranslationAdjustmentMember 2026-01-01 2026-03-31 0000879169 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2026-01-01 2026-03-31 0000879169 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2026-01-01 2026-03-31 0000879169 us-gaap:AccumulatedTranslationAdjustmentMember 2026-03-31 0000879169 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2026-03-31 0000879169 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2026-03-31 0000879169 us-gaap:AccumulatedTranslationAdjustmentMember 2024-12-31 0000879169 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2024-12-31 0000879169 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2024-12-31 0000879169 us-gaap:AccumulatedTranslationAdjustmentMember 2025-01-01 2025-03-31 0000879169 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2025-01-01 2025-03-31 0000879169 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2025-01-01 2025-03-31 0000879169 us-gaap:AccumulatedTranslationAdjustmentMember 2025-03-31 0000879169 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2025-03-31 0000879169 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2025-03-31 0000879169 incy:StockIncentivePlan2010Member 2026-03-31 0000879169 incy:A2024InducementPlanMember 2026-03-31 0000879169 us-gaap:ResearchAndDevelopmentExpenseMember 2026-01-01 2026-03-31 0000879169 us-gaap:ResearchAndDevelopmentExpenseMember 2025-01-01 2025-03-31 0000879169 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2026-01-01 2026-03-31 0000879169 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2025-01-01 2025-03-31 0000879169 us-gaap:CostOfSalesMember 2026-01-01 2026-03-31 0000879169 us-gaap:CostOfSalesMember 2025-01-01 2025-03-31 0000879169 us-gaap:EmployeeStockOptionMember 2026-01-01 2026-03-31 0000879169 us-gaap:EmployeeStockOptionMember 2025-01-01 2025-03-31 0000879169 us-gaap:EmployeeStockMember 2026-01-01 2026-03-31 0000879169 us-gaap:EmployeeStockMember 2025-01-01 2025-03-31 0000879169 us-gaap:EmployeeStockOptionMember 2025-12-31 0000879169 us-gaap:EmployeeStockOptionMember 2026-03-31 0000879169 us-gaap:EmployeeStockOptionMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2026-01-01 2026-03-31 0000879169 us-gaap:EmployeeStockOptionMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2026-01-01 2026-03-31 0000879169 us-gaap:RestrictedStockUnitsRSUMember 2026-01-01 2026-03-31 0000879169 us-gaap:PerformanceSharesMember 2026-01-01 2026-03-31 0000879169 srt:MinimumMember us-gaap:PerformanceSharesMember 2026-01-01 2026-03-31 0000879169 srt:MaximumMember us-gaap:PerformanceSharesMember 2026-01-01 2026-03-31 0000879169 us-gaap:PerformanceSharesMember 2025-01-01 2025-03-31 0000879169 us-gaap:RestrictedStockUnitsRSUMember 2026-03-31 0000879169 us-gaap:PerformanceSharesMember 2026-03-31 0000879169 us-gaap:StockCompensationPlanMember 2026-01-01 2026-03-31 0000879169 us-gaap:StockCompensationPlanMember 2025-01-01 2025-03-31 0000879169 us-gaap:RevolvingCreditFacilityMember 2021-08-31 0000879169 us-gaap:RevolvingCreditFacilityMember 2021-08-01 2021-08-31 0000879169 us-gaap:RevolvingCreditFacilityMember us-gaap:BaseRateMember 2021-08-01 2021-08-31 0000879169 us-gaap:RevolvingCreditFacilityMember us-gaap:BaseRateMember srt:MinimumMember 2021-08-01 2021-08-31 0000879169 us-gaap:RevolvingCreditFacilityMember us-gaap:BaseRateMember srt:MaximumMember 2021-08-01 2021-08-31 0000879169 us-gaap:RevolvingCreditFacilityMember us-gaap:SecuredOvernightFinancingRateSofrMember 2021-08-01 2021-08-31 0000879169 us-gaap:RevolvingCreditFacilityMember us-gaap:SecuredOvernightFinancingRateSofrMember srt:MinimumMember 2021-08-01 2021-08-31 0000879169 us-gaap:RevolvingCreditFacilityMember us-gaap:SecuredOvernightFinancingRateSofrMember srt:MaximumMember 2021-08-01 2021-08-31 0000879169 us-gaap:RevolvingCreditFacilityMember srt:MinimumMember 2021-08-01 2021-08-31 0000879169 us-gaap:RevolvingCreditFacilityMember srt:MaximumMember 2021-08-01 2021-08-31 0000879169 us-gaap:RevolvingCreditFacilityMember 2025-12-31 0000879169 us-gaap:RevolvingCreditFacilityMember 2026-03-31 0000879169 incy:JAKAFIMember incy:USCentersForMedicareAndMedicaidServicesMember incy:AccruedAndOtherCurrentLiabilitiesMember 2026-03-31 0000879169 incy:JAKAFIMember incy:USCentersForMedicareAndMedicaidServicesMember 2026-01-01 2026-03-31 0000879169 us-gaap:ProductMember incy:ReportableSegmentMember 2026-01-01 2026-03-31 0000879169 us-gaap:ProductMember incy:ReportableSegmentMember 2025-01-01 2025-03-31 0000879169 us-gaap:RoyaltyMember incy:ReportableSegmentMember 2026-01-01 2026-03-31 0000879169 us-gaap:RoyaltyMember incy:ReportableSegmentMember 2025-01-01 2025-03-31 0000879169 incy:MilestoneAndContractRevenuesMember incy:ReportableSegmentMember 2026-01-01 2026-03-31 0000879169 incy:MilestoneAndContractRevenuesMember incy:ReportableSegmentMember 2025-01-01 2025-03-31 0000879169 incy:ReportableSegmentMember 2026-01-01 2026-03-31 0000879169 incy:ReportableSegmentMember 2025-01-01 2025-03-31 0000879169 country:US 2026-01-01 2026-03-31 0000879169 country:US 2025-01-01 2025-03-31 0000879169 srt:EuropeMember 2026-01-01 2026-03-31 0000879169 srt:EuropeMember 2025-01-01 2025-03-31 0000879169 incy:OtherCountriesMember 2026-01-01 2026-03-31 0000879169 incy:OtherCountriesMember 2025-01-01 2025-03-31 0000879169 country:US 2026-03-31 0000879169 country:US 2025-12-31 0000879169 country:CH 2026-03-31 0000879169 country:CH 2025-12-31 0000879169 incy:OtherCountriesMember 2026-03-31 0000879169 incy:OtherCountriesMember 2025-12-31 0000879169 incy:PaulClancyMember 2026-01-01 2026-03-31 0000879169 incy:PaulClancyMember 2026-03-31 0000879169 incy:ThomasTrayMember 2026-01-01 2026-03-31 0000879169 incy:ThomasTrayMember 2026-03-31 0000879169 incy:StevenSteinMember 2026-01-01 2026-03-31 0000879169 incy:StevenSteinMember 2026-03-31

Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026
or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from               to               
Commission File Number: 001-12400
INCYTE CORPORATION
(Exact name of registrant as specified in its charter)

Delaware 94-3136539
(State or other jurisdiction of
incorporation or organization) (IRS Employer
Identification No.)

1801 Augustine Cut-Off
Wilmington , DE 19803
19803

(Address of principal executive offices) (Zip Code)

( 302 ) 498-6700
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of exchange on which registered
Common Stock, $.001 par value per share INCY The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes o No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). x Yes o No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒
Accelerated filer o

Non-accelerated filer o
Smaller reporting company o

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). o Yes x No
The number of outstanding shares of the registrant’s Common Stock, $.001 par value, was 199,782,155 as of April 21, 2026.

Table of Contents

INCYTE CORPORATION
INDEX

PART I: FINANCIAL INFORMATION
3

Item 1.
Financial Statements
3

Condensed Consolidated Balance Sheets
3

Condensed Consolidated Statements of Operations
4

Condensed Consolidated Statements of Comprehensive Income
5

Condensed Consolidated Statements of Stockholders’ Equity
6

Condensed Consolidated Statements of Cash Flows
7

Notes to Condensed Consolidated Financial Statements
8

Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
27

Forward-Looking Statements
27

Summary Risk Factors
30

Item 3.
Quantitative and Qualitative Disclosures about Market Risk
47

Item 4.
Controls and Procedures
47

PART II: OTHER INFORMATION

Item 1 .
Legal Proceedings
47

Item 1A.
Risk Factors
48

Item 5.
Other Information
75

Item 6.
Exhibits
78

Signatures
79

2

Table of Contents

PART I: FINANCIAL INFORMATION

Item 1. Financial Statements

INCYTE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except number of shares and par value)

March 31,
2026 December 31,
2025*
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 3,461,114   $ 3,097,817  
Marketable securities—available-for-sale (amortized cost $ 555,202 and $ 480,793 as of March 31, 2026 and December 31, 2025, respectively; allowance for credit losses $ 0 as of March 31, 2026 and December 31, 2025)
554,711   482,787  
Accounts receivable 1,051,499   1,024,407  
Inventory 115,624   101,060  
Prepaid expenses and other current assets 301,312   317,831  
Total current assets 5,484,260   5,023,902  

Restricted cash 1,836   1,852  
Long term equity investments 54,582   47,991  
Inventory 331,421   342,232  
Property and equipment, net 720,169   730,885  
Finance lease right-of-use assets, net 26,669   27,520  
Other intangible assets, net 110,164   117,131  
Goodwill 133,000   133,000  
Deferred income tax asset 452,520   515,294  
Other assets, net 24,492   18,166  
Total assets $ 7,339,113   $ 6,957,973  

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 228,624   $ 209,938  
Accrued compensation 124,920   228,071  
Accrued and other current liabilities 1,092,308   1,031,501  
Finance lease liabilities 4,413   4,516  
Acquisition-related contingent consideration 39,384   41,144  
Total current liabilities 1,489,649   1,515,170  

Acquisition-related contingent consideration 70,616   79,856  
Finance lease liabilities 29,414   30,199  
Other liabilities 126,587   165,270  
Total liabilities 1,716,266   1,790,495  

Commitments and contingencies (Note 15)

Stockholders’ equity:
Preferred Stock, $ 0.001 par value; 5,000,000 shares authorized; none issued or outstanding
—   —  
Common Stock, $ 0.001 par value; 400,000,000 shares authorized; 199,948,401 and 198,460,009 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively
200   198  
Additional paid-in capital 5,083,234   4,928,049  
Accumulated other comprehensive income 22,314   25,462  
Retained earnings 517,099   213,769  
Total stockholders’ equity 5,622,847   5,167,478  
Total liabilities and stockholders’ equity $ 7,339,113   $ 6,957,973  

* The condensed consolidated balance sheet at December 31, 2025 has been derived from the audited consolidated financial statements at that date.
See accompanying notes.

3

Table of Contents

INCYTE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share amounts)

Three Months Ended
March 31,
2026 2025
Revenues:
Net sales $ 1,104,484   $ 922,274  
Product royalty revenues 151,192   130,624  
Milestone and contract revenues 17,000   —  
Total revenues 1,272,676   1,052,898  

Costs, expenses and other:
Cost of sales (including definite-lived intangible amortization) 104,523   73,188  

Research and development 515,903   437,279  
Selling, general and administrative 328,087   325,691  
Asset impairment and related disposal costs 23,214   —  
(Gain) loss on change in fair value of acquisition-related contingent consideration ( 168 ) 11,572  
Total costs, expenses and other 971,559   847,730  

Income from operations 301,117   205,168  
Interest income 33,687   22,929  
Interest expense ( 569 ) ( 660 )
Gain (loss) on equity investments 6,591   ( 1,343 )
Other, net 2,774   8,096  
Income before provision for income taxes 343,600   234,190  
Provision for income taxes 40,270   75,987  
Net income $ 303,330   $ 158,203  

Net income per share:
Basic $ 1.52   $ 0.82  
Diluted $ 1.47   $ 0.80  

Shares used in computing net income per share:
Basic 199,343 193,712
Diluted 206,830 198,197

See accompanying notes.

4

Table of Contents

INCYTE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited, in thousands)

Three Months Ended
March 31,
2026 2025
Net income $ 303,330   $ 158,203  

Other comprehensive (loss) income:
Foreign currency translation (loss) gain ( 897 ) 5,440  
Unrealized (loss) gain on marketable securities, net of tax ( 2,485 ) 931  
Defined benefit pension gain, net of tax 234   512  
Other comprehensive (loss) income ( 3,148 ) 6,883  

Comprehensive income $ 300,182   $ 165,086  

See accompanying notes.

5

Table of Contents

INCYTE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(unaudited, in thousands, except number of shares)

Common
Stock Additional
Paid-in Capital Accumulated Other
Comprehensive Income (Loss) Retained Earnings Total
Stockholders’
Equity
Balances at January 1, 2026 $ 198   $ 4,928,049   $ 25,462   $ 213,769   $ 5,167,478  
Issuance of 1,473,992 shares of Common Stock upon exercise of stock options and settlement of employee restricted stock units, net of shares withheld for taxes
2   90,967   —  —  90,969  
Issuance of 955 shares of Common Stock for services rendered
—  92   —  —  92  
Stock compensation —  64,126   —  —  64,126  
Other comprehensive loss —  —  ( 3,148 ) —  ( 3,148 )
Net income —  —  —  303,330   303,330  
Balances at March 31, 2026 $ 200   $ 5,083,234   $ 22,314   $ 517,099   $ 5,622,847  

Common
Stock Additional
Paid-in Capital Accumulated Other
Comprehensive (Loss) Income (Accumulated Deficit) Total
Stockholders’
Equity
Balances at January 1, 2025 $ 193   $ 4,533,437   $ ( 13,121 ) $ ( 1,072,881 ) $ 3,447,628  
Issuance of 363,987 shares of Common Stock upon exercise of stock options and settlement of employee restricted stock units, net of shares withheld for taxes
—  ( 6,215 ) —  —  ( 6,215 )
Issuance of 1,208 shares of Common Stock for services rendered
—  82   —  —  82  
Stock compensation —  60,982   —  —  60,982  
Other comprehensive income —  —  6,883   —  6,883  
Net income —  —  —  158,203   158,203  
Balances at March 31, 2025 $ 193   $ 4,588,286   $ ( 6,238 ) $ ( 914,678 ) $ 3,667,563  

See accompanying notes.

6

Table of Contents

INCYTE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)

Three Months Ended March 31,
2026 2025
Cash flows from operating activities:
Net income $ 303,330   $ 158,203  
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 23,802   22,362  
Stock-based compensation 64,126   60,982  
Deferred income taxes 63,416   ( 6,706 )
Other, net 12,772   5,292  
(Gain) loss on equity investments ( 6,591 ) 1,343  
(Gain) loss on change in fair value of acquisition-related contingent consideration ( 168 ) 11,572  

Changes in operating assets and liabilities:
Accounts receivable ( 27,027 ) 30,955  
Prepaid expenses and other assets 9,193   ( 62,045 )
Inventory ( 12,226 ) ( 28,574 )
Accounts payable 23,449   ( 2,159 )
Accrued and other liabilities ( 84,725 ) 74,842  
Net cash provided by operating activities 369,351   266,067  
Cash flows from investing activities:

Sale of equity investments —   8  
Capital expenditures ( 10,200 ) ( 3,169 )
Payments for intangible assets ( 5,000 ) —  
Purchases of marketable securities ( 142,703 ) ( 41,236 )
Maturities of marketable securities 69,700   45,494  
Net cash (used in) provided by investing activities ( 88,203 ) 1,097  
Cash flows from financing activities:

Proceeds from issuance of Common Stock under stock plans 97,925   3,239  
Tax withholdings related to restricted and performance share vesting ( 6,956 ) ( 9,454 )
Payment of finance lease liabilities ( 1,184 ) ( 1,090 )
Payment of contingent consideration ( 4,963 ) ( 5,371 )
Net cash provided by (used in) financing activities 84,822   ( 12,676 )
Effect of exchange rates on cash, cash equivalents, and restricted cash ( 2,689 ) ( 552 )
Net increase in cash, cash equivalents, and restricted cash 363,281   253,936  
Cash, cash equivalents, and restricted cash at beginning of period 3,099,669   1,689,451  
Cash, cash equivalents, and restricted cash at end of period $ 3,462,950   $ 1,943,387  
Supplemental Schedule of Cash Flow Information
Income taxes paid, net of (refunds) $ ( 8,787 ) $ 844  

Unpaid excise tax on repurchase of Common Stock $ —   $ 19,185  
Unpaid purchases of property and equipment $ 1,633   $ 2,890  
Leased assets obtained in exchange for new operating lease liabilities $ 572   $ 1,171  
Leased assets obtained in exchange for new finance lease liabilities $ 279   $ 220  

See accompanying notes.

7

Table of Contents

INCYTE CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2026
(Unaudited)

Note 1. Organization and Business
Incyte Corporation (including its subsidiaries, “Incyte,” “we,” “us,” or “our”) is a global biopharmaceutical company engaged in the discovery, development and commercialization of proprietary therapeutics. Our portfolio includes compounds in various stages, ranging from preclinical to late stage development, and commercialized products JAKAFI® (ruxolitinib), ICLUSIG® (ponatinib), PEMAZYRE® (pemigatinib), OPZELURA® (ruxolitinib cream), MINJUVI® (tafasitamab), MONJUVI® (tafasitamab-cxix), ZYNYZ® (retifanlimab-dlwr), as well as NIKTIMVO™ (axatilimab-csfr), which is co-commercialized. Our operations are treated as one operating segment.

Note 2. Summary of Significant Accounting Policies
Basis of presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The condensed consolidated balance sheet as of March 31, 2026, and the condensed consolidated statements of operations, comprehensive income (loss), stockholders’ equity and cash flows for the three months ended March 31, 2026 and 2025, are unaudited, but include all adjustments, consisting only of normal recurring adjustments, which we consider necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The condensed consolidated balance sheet at December 31, 2025 has been derived from our audited consolidated financial statements.
Although we believe that the disclosures in these financial statements are adequate to make the information presented not misleading, certain information and footnote information normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”).
Results for any interim period are not necessarily indicative of results for any future interim period or for the entire year. The accompanying financial statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2025.
Principles of Consolidation. The condensed consolidated financial statements include the accounts of Incyte Corporation and our wholly owned subsidiaries. All inter-company accounts, transactions, and profits have been eliminated in consolidation.
Use of Estimates. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an ongoing basis, we evaluate our estimates. We base our estimates on historical experience and various other assumptions that we believe to be reasonable under the circumstances, the results of which form our basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates.
Recent Accounting Pronouncements and Regulatory Updates
In November 2024, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2024-03, “ Disaggregation of Income Statement Expenses (DISE).” This new guidance applies to all public entities and requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. Public entities must adopt the new standard prospectively for fiscal years beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption and retrospective application are permitted. We are currently evaluating the impact ASU No. 2024-03 will have on our consolidated financial statements and related disclosures.

8

Table of Contents

In July 2025, the FASB issued ASU No. 2025-05, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. ” This amended guidance applies to all entities and aims to simplify the estimation of expected credit losses for current accounts receivable and contract assets by providing a practical expedient for all companies. The amendments are effective for annual reporting periods beginning after December 15, 2025 and interim reporting periods within those annual periods. We formally adopted ASU 2025-05, effective January 1, 2026, and elected the practical expedient provided to all companies. This adoption and related practical expedient election did not have and is not expected to have a material impact on our consolidated financial statements and related disclosures.
In September 2025, the FASB issued ASU No. 2025-06, “ Intangibles - Goodwill and Other - Internal-Use (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. ” This amended guidance applies to all entities and serves to modernize the accounting for software costs that are accounted for under Subtopic 305-40, Intangibles - Goodwill and Other - Internal-Use Software (referred to as “internal-use software”). The amendments in this update are effective for all entities for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. Entities may adopt the new guidance using a prospective, modified, or retrospective transition approach. We are currently evaluating the impact ASU No. 2025-06 will have on our consolidated financial statements and related disclosures.
In September 2025, the FASB issued ASU No. 2025-07, “ Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract. ” This amended guidance applies to all entities and refines the scope of derivative accounting and clarifies rules for share-based noncash consideration in revenue contracts. Specifically, this update is intended to address concerns about the application of derivative accounting to contracts that have features based on the operations or activities of one of the parties to the contract and to reduce diversity in the accounting for share-based payments in revenue contracts. The amendments in this update are effective for all entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted. Entities may adopt the new guidance prospectively, or on a modified retrospective basis. We are currently evaluating the impact ASU No. 2025-07 will have on our consolidated financial statements and related disclosures.
In December 2025, the FASB issued ASU No. 2025-10, “ Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities. ” This accounting standard update establishes specific rules for the recognition, measurement, and presentation of government grants received by business entities. For public business entities, this amended guidance is applicable for fiscal years beginning after December 15, 2028, including interim periods within those fiscal years. Early adoption is permitted. Entities may adopt the new guidance using a modified prospective, modified retrospective, or full retrospective approach. We are currently evaluating the impact ASU No. 2025-10 will have on our consolidated financial statements and related disclosures.
In December 2025, the FASB issued ASU No. 2025-11, “ Interim Reporting (Topic 270): Narrow-Scope Improvements. ” The amendments in this update aim to enhance the guidance in Topic 270, Interim Reporting, by improving the navigability of the required interim disclosures and clarifying when that guidance is applicable. The amendments also provide additional guidance on what disclosures should be provided in interim reporting periods. Lastly, this updated guidance incorporates a principle that requires entities to disclose significant events since the end of the last annual reporting period. The amendments in this update apply to all entities that provide interim financial statements and notes in accordance with U.S. GAAP. For public business entities, this amended guidance is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted, and the amendments in this update can be applied either prospectively or retrospectively to any or all periods presented in the financial statements. We are currently evaluating the impact ASU No. 2025-11 will have on our future condensed consolidated financial statements and related disclosures.

9

Table of Contents

Note 3. Revenues
Revenues are recognized under guidance within ASC 606, Revenue from Contracts with Customers . The following table presents our disaggregated revenue for the periods presented (in thousands):

Three Months Ended
March 31,
2026 2025
JAKAFI net sales $ 757,755   $ 709,412  
OPZELURA net sales 143,015   118,705  
ICLUSIG net sales 35,463   29,544  
PEMAZYRE net sales 22,543   18,440  
MINJUVI/MONJUVI net sales 49,227   29,551  
NIKTIMVO net sales 55,088   13,613  
ZYNYZ net sales 41,393   3,009  
Total net sales 1,104,484   922,274  
JAKAVI product royalty revenues 105,556   92,145  
OLUMIANT product royalty revenues 36,407   30,800  
TABRECTA product royalty revenues 5,982   6,413  
Other product royalty revenues 3,247   1,266  
Total product royalty revenues 151,192   130,624  
Milestone and contract revenues 17,000   —  
Total revenues $ 1,272,676   $ 1,052,898  

For further information on our revenue-generating contracts, refer to Note 7.

Note 4. Fair Value of Financial Instruments
The following is a summary of our marketable security portfolio for the periods presented (in thousands):

Amortized
Cost Unrealized Gains Unrealized Losses
Fair Value
March 31, 2026
Debt securities (government) $ 555,202   $ 697   $ ( 1,188 ) $ 554,711  

December 31, 2025
Debt securities (government) $ 480,793   $ 2,028   $ ( 34 ) $ 482,787  

The table below summarizes the contractual maturities of our available-for-sale debt securities as of March 31, 2026 (in thousands):

Total Less than 1 Year 1-5 Years
Fair value of debt securities (government) $ 554,711   $ 217,051   $ 337,660  

Debt security assets were assessed for risk of expected credit losses. As of March 31, 2026 and December 31, 2025, the available-for-sale debt securities were held in U.S.-government backed securities and in Treasury bonds and were assessed on an individual security basis to have a de minimis risk of credit loss.

10

Table of Contents

Fair Value Measurements
FASB accounting guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability (“the exit price”) in an orderly transaction between market participants at the measurement date. The standard outlines a valuation framework and creates a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and the related disclosures. In determining fair value, we use quoted prices and observable inputs. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of us. The fair value hierarchy is broken down into three levels based on the source of inputs as follows:
Level 1—Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2—Valuations based on observable inputs and quoted prices in active markets for similar assets and liabilities.
Level 3—Valuations based on inputs that are unobservable and models that are significant to the overall fair value measurement.
Recurring Fair Value Measurements
Our marketable securities consist of investments in U.S. government debt securities that are classified as available-for-sale.
At March 31, 2026 and December 31, 2025, our Level 2 U.S. government debt securities were valued using readily available pricing sources which utilize market observable inputs, including the current interest rate and other characteristics for similar types of investments. Our long term equity investments classified as Level 1 were valued using their respective closing stock prices on The Nasdaq Stock Market. We did not experience any transfers of financial instruments between the fair value hierarchy levels during the three months ended March 31, 2026.
The following fair value hierarchy table presents information about each major category of our financial assets measured at fair value on a recurring basis (in thousands):

Fair Value Measurement at Reporting Date Using:
Quoted Prices in
Active Markets for
Identical Assets
(Level 1) Significant Other
Observable
Inputs
(Level 2) Significant
Unobservable
Inputs
(Level 3) Balance as of
March 31, 2026
Cash and cash equivalents $ 3,461,114   $ —   $ —   $ 3,461,114  
Debt securities (government) —   554,711   —   554,711  
Long term equity investments (Note 7)
54,582   —   —   54,582  
Total assets $ 3,515,696   $ 554,711   $ —   $ 4,070,407  

Fair Value Measurement at Reporting Date Using:
Quoted Prices in
Active Markets for
Identical Assets
(Level 1) Significant Other
Observable
Inputs
(Level 2) Significant
Unobservable
Inputs
(Level 3) Balance as of
December 31, 2025
Cash and cash equivalents $ 3,097,817   $ —   $ —   $ 3,097,817  
Debt securities (government) —   482,787   —   482,787  
Long term equity investments (Note 7)
47,991   —   —   47,991  
Total assets $ 3,145,808   $ 482,787   $ —   $ 3,628,595  

11

Table of Contents

The following fair value hierarchy table presents information about each major category of our financial liabilities measured at fair value on a recurring basis (in thousands):

Fair Value Measurement at Reporting Date Using:
Quoted Prices in
Active Markets for
Identical Liabilities
(Level 1) Significant Other
Observable
Inputs
(Level 2) Significant
Unobservable
Inputs
(Level 3) Balance as of
March 31, 2026
Acquisition-related contingent consideration $ —   $ —   $ 110,000   $ 110,000  
Total liabilities $ —   $ —   $ 110,000   $ 110,000  

Fair Value Measurement at Reporting Date Using:
Quoted Prices in
Active Markets for
Identical Liabilities
(Level 1) Significant Other
Observable
Inputs
(Level 2) Significant
Unobservable
Inputs
(Level 3) Balance as of
December 31, 2025
Acquisition-related contingent consideration $ —   $ —   $ 121,000   $ 121,000  
Total liabilities $ —   $ —   $ 121,000   $ 121,000  

The following is a roll forward of our Level 3 liabilities (in thousands):

2026
Balance at January 1, $ 121,000  
Contingent consideration earned during the period but not yet paid ( 10,832 )

Change in fair value of contingent consideration ( 168 )
Balance at March 31, $ 110,000  

The initial fair value of the contingent consideration was determined on the date of acquisition, June 1, 2016, using an income approach based on projected future net sales of ICLUSIG in the European Union and other countries for the approved third line treatment over 18 years, and discounted to present value at a rate of 10 %. The fair value of the contingent consideration is remeasured each reporting period, with changes in fair value recorded in the condensed consolidated statements of operations. The valuation inputs utilized to estimate the fair value of the contingent consideration as of March 31, 2026 and December 31, 2025 included a discount rate of 10 %, updated projections of future net sales of ICLUSIG in the European Union and other countries for the approved third line treatment, and related applicable royalty rates. The change in fair value of the contingent consideration during the three months ended March 31, 2026 was due primarily to updated projections of future net sales of ICLUSIG, including the impacts from fluctuations in foreign currency exchange rates, and the passage of time.
We generally make payments to Takeda Pharmaceutical Company Limited quarterly based on the royalties earned in the previous quarter. As of March 31, 2026 and December 31, 2025, contingent consideration earned but not yet paid was $ 10.8 million and $ 12.1 million, respectively, and was included in accrued and other current liabilities.

Note 5. Concentration of Credit Risk and Current Expected Credit Losses
In November 2009, we entered into a collaboration and license agreement with Novartis Pharma AG (formerly known as Novartis Pharmaceutical International Ltd.) (“Novartis”). In December 2009, we entered into a license, development and commercialization agreement with Eli Lilly and Company (“Lilly”). The above collaboration partners comprised, in aggregate, 14 % and 17 % of the accounts receivable balance as of March 31, 2026 and December 31, 2025, respectively. For further information relating to these collaboration and license agreements, refer to Note 7.

12

Table of Contents

The concentration of credit risk related to our JAKAFI and OPZELURA sales is as follows:

Percentage of Total Net
Sales for the
Three Months Ended
March 31,
2026 2025
Customer A 13   % 14   %
Customer B 8   % 10   %
Customer C 21   % 20   %
Customer D 19   % 19   %
Customer E 10   % 9   %
Customer F 10   % 10   %

We are exposed to risks associated with extending credit to customers related to the sale of products. Customers A, B, C, D, E and F comprised, in the aggregate, 64 % and 54 % of the accounts receivable balance as of March 31, 2026 and December 31, 2025, respectively. The concentration of credit risk relating to our other sales or accounts receivable is not significant.
We assessed our collaborative and customer receivable assets as of March 31, 2026 according to our accounting policy for applying reserves for expected credit losses, noting minimal history of uncollectible receivables and the continued perceived creditworthiness of our third party sales relationships, upon which the expected credit losses were considered de minimis. As of March 31, 2026 and December 31, 2025, we had a de minimus amount of allowance for doubtful accounts.

Note 6. Inventory
Our inventory balance consists of the following (in thousands):

March 31,
2026 December 31,
2025
Raw materials $ 36,598   $ 27,860  
API and work-in-process 351,581   343,678  
Finished goods 58,866   71,754  
Total inventory $ 447,045   $ 443,292  

Inventories, stated at the lower of cost and net realizable value, consist of raw materials, active pharmaceutical ingredients (“API”), work-in-process, and finished goods, inclusive of freight and inventoriable overhead. At March 31, 2026, $ 115.6 million of inventory was classified as current on the condensed consolidated balance sheet as we expect this inventory to be consumed for commercial use within the next twelve months. At March 31, 2026, $ 331.4 million of inventory was classified as non-current on the condensed consolidated balance sheet as we do not expect this inventory to be consumed for commercial use within the next twelve months. We obtain some inventory components from a limited number of suppliers due to technology, availability, price, quality or other considerations. The loss of a supplier, the deterioration of our relationship with a supplier, or any unilateral violation of the contractual terms under which we are supplied components by a supplier could adversely affect our total revenues and gross margins.
We capitalize inventory after regulatory approval as the related costs are expected to be recoverable through the commercialization of the product. Costs incurred prior to regulatory approval are recorded as research and development expense in our condensed consolidated statements of operations. At March 31, 2026, inventory with approximately $ 40.9 million of product costs incurred prior to regulatory approval had not yet been sold. We expect to sell the pre-commercialization inventory over the next 6 to 35 months and, as a result, cost of sales will reflect a lower average per unit cost of materials.

13

Table of Contents

Note 7. Collaborative and Other Relationships
Novartis
In November 2009, we entered into a Collaboration and License Agreement with Novartis. Under the terms of the agreement, Novartis received exclusive development and commercialization rights outside of the United States to our JAK inhibitor ruxolitinib and certain back-up compounds for hematologic and oncology indications, including all hematological malignancies, solid tumors and myeloproliferative diseases. We retained exclusive development and commercialization rights to JAKAFI (ruxolitinib) in the United States and in certain other indications. Novartis also received worldwide exclusive development and commercialization rights to our MET inhibitor compound capmatinib and certain back-up compounds in all indications.
Under this agreement, each company is responsible for costs relating to the development and commercialization of ruxolitinib in its respective territories, with costs of collaborative studies shared equally. Novartis is also responsible for all costs relating to the development and commercialization of capmatinib.
We were initially eligible to receive up to $ 174.0 million for the achievement of development milestones, up to $ 495.0 million for the achievement of regulatory milestones and up to $ 500.0 million for the achievement of sales milestones. In addition, we were initially eligible to receive up to $ 75.0 million of additional potential development and regulatory milestones relating to graft-versus-host-disease (“GVHD”). Since the inception of the agreement through March 31, 2026, we have recognized and received, in the aggregate, $ 157.0 million for the achievement of development milestones, $ 345.0 million for the achievement of regulatory milestones, and $ 200.0 million for the achievement of sales milestones.
We are obligated to pay to Novartis tiered royalties in the low single-digits on future JAKAFI net sales within the United States. On May 11, 2025, we and Novartis entered into a settlement agreement (the “Settlement Agreement”) with respect to litigation initiated by Novartis relating to the duration of royalty payments owed by us to Novartis under the Collaboration and License Agreement. Under the Settlement Agreement, we agreed to reduce by 50 % the royalty rate payable by us on future net sales of JAKAFI in the United States beginning January 1, 2025 for a period defined in the Settlement Agreement.
During the three months ended March 31, 2026 and 2025, such royalties on net sales within the United States totaled $ 16.1 million and $ 29.8 million, respectively, and were reflected in cost of sales on the condensed consolidated statements of operations. As a result of the Settlement Agreement noted above, the reduced royalty paid for the quarter ended March 31, 2025 was approximately $ 14.9 million. At March 31, 2026 and December 31, 2025, approximately $ 16.1 million and $ 20.3 million, respectively, of accrued royalties were included in accrued and other current liabilities on the condensed consolidated balance sheets.
We also are eligible to receive tiered, double-digit royalties ranging from the upper-teens to the mid-twenties on future JAKAVI (the trade name used by Novartis for ruxolitinib sales outside of the United States) net sales outside of the United States, and tiered, worldwide royalties on TABRECTA net sales that range from 12 % to 14 %. Product royalty revenue related to Novartis’ net sales of JAKAVI outside of the United States for the three months ended March 31, 2026 and 2025, was $ 105.6 million and $ 92.1 million, respectively. Product royalty revenue related to Novartis’ net sales of TABRECTA worldwide for the three months ended March 31, 2026 and 2025, was $ 6.0 million and $ 6.4 million, respectively.
Lilly – Baricitinib
In December 2009, we entered into a License, Development and Commercialization Agreement with Lilly. Under the terms of the agreement, Lilly received exclusive worldwide development and commercialization rights to our JAK inhibitor baricitinib, and certain back-up compounds for inflammatory and autoimmune diseases.

14

Table of Contents

Under this agreement, we were initially eligible to receive up to $ 150.0 million for the achievement of development milestones, up to $ 365.0 million for the achievement of regulatory milestones and up to $ 150.0 million for the achievement of sales milestones. In October 2025, the parties amended the agreement to enable Lilly to commercialize baricitinib for the treatment of Type 1 diabetes mellitus and to restructure the royalty obligations on net sales of baricitinib, certain developmental and regulatory milestones associated with baricitinib, and the marketing and sales support obligations of Lilly. Beginning in October 2025, we are now eligible to receive either a fixed royalty amount or tiered royalties based on defined levels of quarterly global net sales, with the tiered royalties up to a rate in the mid-teens. Since the inception of the agreement through March 31, 2026, we recognized and received, in aggregate, $ 149.0 million for the achievement of development milestones, $ 335.0 million for the achievement of regulatory milestones, $ 50.0 million for the achievement of sales milestones, and $ 100.0 million for the functional intellectual property transfer related to Type 1 diabetes mellitus.
Product royalty revenue related to Lilly net sales of OLUMIANT outside of the United States for the three months ended March 31, 2026 and 2025 was $ 36.4 million and $ 30.8 million, respectively.
MacroGenics
In October 2017, we entered into a Global Collaboration and License Agreement with MacroGenics, Inc. (“MacroGenics”). Under this agreement, we received exclusive development and commercialization rights worldwide to MacroGenics’ INCMGA0012 (formerly MGA012), an investigational monoclonal antibody that inhibits PD-1. Except as set forth in the succeeding sentence, we have sole authority over and bear all costs and expenses in connection with the development and commercialization of INCMGA0012 in all indications, whether as a monotherapy or as part of a combination regimen. MacroGenics has retained the right to develop and commercialize, at its cost and expense, its pipeline assets in combination with INCMGA0012. In addition, MacroGenics has the right to manufacture a portion of both companies’ global clinical and commercial supply needs of INCMGA0012.
Since the inception of the agreement, inclusive of amendments to the agreement, through March 31, 2026, we have paid MacroGenics developmental and regulatory milestones totaling $ 215.0 million. After these amendments and subsequent payments, MacroGenics will be eligible to receive up to an additional $ 210.0 million in future contingent development and regulatory milestones, and up to $ 330.0 million in sales milestones as well as tiered royalties ranging from 15 % to 24 % of global net sales. In June 2025, MacroGenics sold certain of its rights to such future tiered royalties on and after June 30, 2025 to Sagard Healthcare Partners (Delaware) II LP.
Syndax
In September 2021, we entered into a Collaboration and License Agreement with Syndax Pharmaceuticals, Inc. (“Syndax”), covering the worldwide development and commercialization of SNDX-6352 (“axatilimab”). Under the terms of our agreement, we received exclusive commercialization rights to axatilimab outside of the United States and share commercialization rights in the United States with Syndax. We are responsible for leading the commercialization strategy and booking all revenue from sales of axatilimab globally. Incyte and Syndax share equally the profits and losses from the co-commercialization efforts in the United States. Sales of axatilimab outside the United States are subject to our royalty payment obligations to Syndax, as set forth below. We and Syndax have agreed to co-develop axatilimab and to share development costs associated with global and U.S.-specific clinical trials, with Incyte responsible for 55 % of such costs and Syndax responsible for 45 % of such costs. Each company is responsible for funding any independent development activities.
Inclusive of an upfront, non-refundable payment, since the inception of the agreement through March 31, 2026, we have made payments of $ 129.5 million to Syndax, which were previously recorded in research and development expense or in other intangible assets, as discussed above. Syndax is eligible to receive up to $ 207.5 million in future contingent development and regulatory milestones and up to $ 225.0 million in sales milestones as well as tiered royalties ranging in the mid-teens on net sales in Europe and Japan and low double digit percentage on net sales in the rest of the world outside of the United States. Syndax’s right to receive royalties in any particular country will expire upon the last to occur of (a) the expiration of patent rights in that particular country, (b) a specified period of time after the first post-marketing authorization sale of a licensed product comprising axatilimab in that country, and (c) the expiration of any regulatory exclusivity for that licensed product in that country.

15

Table of Contents

As of March 31, 2026, we held an investment of approximately 1.4 million shares of Syndax common stock. The fair market value of our long term investment in Syndax as of March 31, 2026 and December 31, 2025 was $ 33.2 million and $ 29.9 million, respectively. For the three months ended March 31, 2026 and 2025, we recorded an unrealized gain of $ 3.3 million and unrealized loss of $ 1.3 million, respectively, based on the change in fair value of Syndax’s common stock during the respective periods.
Research and development expenses for the three months ended March 31, 2026 and 2025, includes $ 5.4 million and $ 4.7 million respectively, related to our 55 % share of the co-development costs for axatilimab. At March 31, 2026 and December 31, 2025, $ 1.4 million and $ 2.4 million, respectively, was included in accrued and other liabilities on the condensed consolidated balance sheet for amounts due to Syndax under the agreement.
In connection with the United States co-commercialization efforts, Syndax’s 50 % share of profit was $ 14.4 million for the three months ended March 31, 2026, which is reflected in cost of sales on the condensed consolidated statement of operations. At March 31, 2026 and December 31, 2025, $ 22.5 million and $ 27.6 million, respectively, was included in accrued and other liability on the consolidated balance sheet for amounts due to Syndax related to United States co-commercialization activities.
Prelude
In November 2025, we entered into an exclusive purchase option agreement with Prelude Therapeutics Incorporated (“Prelude”). Under the terms of the agreement, we secured an exclusive option to acquire Prelude’s mutant selective JAK2V617F JH2 inhibitor program, including Prelude’s library of preclinical candidates. We paid Prelude a total of $ 60.0  million, comprised of an upfront payment of $ 35.0  million, plus a $ 25.0  million equity investment in Prelude. The $ 35.0  million upfront payment was recorded in research and development expense during the fourth quarter of 2025. We purchased 6.25 million shares of Prelude non-voting common stock at a price of $ 4.00 per share. Of this $ 25.0  million equity investment, approximately $ 17.1  million was expensed in research and development during the fourth quarter of 2025 as a premium above fair value of the stock purchase. The remaining $ 7.9  million is the initial fair value of our investment in Prelude. We are accounting for our shares held in Prelude at fair value whereby the investment is marked to market through earnings in each reporting period. Given our intent to hold the investment for the foreseeable future, we have classified the investment within long term investments on the accompanying condensed consolidated balance sheets. For the three months ended March 31, 2026, we recorded an unrealized gain of $ 3.3  million based on the change in fair value of Prelude’s common stock during the period. The fair market value of our total long term investment in Prelude as of March 31, 2026 and December 31, 2025 was $ 21.4  million and $ 18.1  million, respectively.
Prelude expects to advance the JAK2V617F program to pre-defined milestones. We may elect to exercise our exclusive option during the option period to acquire the program and associated assets from Prelude for $ 100.0  million. In addition, if we exercise our option, Prelude would be eligible to receive up to $ 775.0  million in additional clinical and regulatory milestones, and single digit royalties on global net sales.
If we elect to not exercise our option to acquire the program, all JAK2V617F global program rights and interests would remain in the sole ownership and control of Prelude.
Other Agreements
In addition to the license and collaboration agreements discussed above, we have various other license and collaboration agreements that are not individually material to our operating results or financial condition at this time. Pursuant to the terms of those agreements, we may be required to pay, or we may receive, additional amounts contingent upon the occurrence of various future events such as future discovery, development, regulatory or commercial milestones, which in the aggregate could be material. In addition, if any products related to these collaborations are approved for sale, we may be required to pay, or we may receive, royalties on future sales. The payment or receipt of these amounts, however, is contingent upon the occurrence of various future events, the likelihood of which cannot presently be determined.

16

Table of Contents

Note 8. Property and Equipment, net
Property and equipment, net consists of the following (in thousands):

March 31,
2026 December 31,
2025
Office equipment $ 25,257   $ 24,411  
Laboratory equipment 259,861   258,003  
Computer equipment 160,555   152,156  
Land 11,221   11,273  
Building and leasehold improvements 608,820   610,027  
Operating lease right-of-use assets 18,327   19,596  
Construction in progress 25,124   30,485  
1,109,165   1,105,951  
Less accumulated depreciation and amortization ( 388,996 ) ( 375,066 )
Property and equipment, net $ 720,169   $ 730,885  

In May 2024, we purchased additional property in Wilmington, Delaware, including land, office buildings and parking garages for a purchase price of $ 48.7 million. Subsequent to the purchase, we incurred additional construction costs of approximately $ 28.6 million through December 2025. During December 2025, the downtown Wilmington, Delaware properties met the criteria to be classified as assets held for sale. As a result of this classification, we recorded an asset impairment charge of $ 76.3 million on our consolidated statement of operations for the year ended December 31, 2025 relating to the downtown Wilmington properties in order to reflect the properties at the lower of their carrying amount or estimated fair value less cost to sell as of December 31, 2025. The estimated fair value less cost to sell of the properties was recorded within the Prepaid expenses and other current assets line item on our consolidated balance sheet as of December 31, 2025. During the three months ended March 31, 2026, we sold these downtown properties, and recognized an additional $ 23.2 million of expenses relating to disposal costs, which are included in Asset impairment and related disposal costs in the condensed consolidated statements of operations.

Note 9. Accrued and Other Current Liabilities
Accrued and other current liabilities consisted of the following (in thousands):

March 31,
2026 December 31,
2025
Royalties $ 37,450 $ 40,678
Clinical related costs 177,703 175,932
Sales allowances 722,412 642,468
Sales and marketing 64,762 71,248
Accrued taxes 5,934 4,755
Operating lease liabilities 5,603 5,697
Other current liabilities 78,444 90,723
Total accrued and other current liabilities $ 1,092,308 $ 1,031,501

17

Table of Contents

Note 10. Other Comprehensive Income (Loss)
The following tables summarize the activity related to each component of accumulated other comprehensive income (loss) during the three months ended March 31, 2026 and 2025:

(Amounts presented net of taxes) Foreign Currency Translation Gains (Loss) Net Unrealized Gains (Losses) on Marketable Securities Defined Benefit Pension Plans Accumulated Other Comprehensive Income (Loss)
Balances at January 1, 2026 $ 51,433   $ 1,994   $ ( 27,965 ) $ 25,462  
Other comprehensive loss before reclassifications ( 897 ) ( 2,485 ) —   ( 3,382 )
Net amount reclassified from accumulated other comprehensive income (loss) —   —   234   234  
Net other comprehensive (loss) income ( 897 ) ( 2,485 ) 234   ( 3,148 )
Balances at March 31, 2026 $ 50,536   $ ( 491 ) $ ( 27,731 ) $ 22,314  

(Amounts presented net of taxes) Foreign Currency Translation Gains Net Unrealized Gains on Marketable Securities Defined Benefit Pension Plans Accumulated Other Comprehensive Income (Loss)
Balances at January 1, 2025 $ 26,456   $ 346   $ ( 39,923 ) $ ( 13,121 )
Other comprehensive income before reclassifications 5,440   931   —   6,371  
Net amount reclassified from accumulated other comprehensive income (loss) —   —   512   512  
Net other comprehensive income 5,440   931   512   6,883  
Balances at March 31 2025 $ 31,896   $ 1,277   $ ( 39,411 ) $ ( 6,238 )

Note 11. Stock Compensation
2010 Stock Incentive Plan. Under our Amended and Restated 2010 Stock Incentive Plan, as amended (the “2010 Stock Plan”), we may issue common stock to employees, non-employee directors, consultants, and scientific advisors. Awards under the 2010 Stock Plan include stock options, restricted stock units (“RSUs”) and performance shares (“PSUs”). A total of 74,953,475 shares of common stock are reserved for issuance pursuant to the 2010 Stock Plan.
2024 Inducement Stock Incentive Plan. Our Board of Directors has adopted the Incyte Corporation 2024 Inducement Stock Incentive Plan, as amended (the “2024 Inducement Plan”). In reliance on Nasdaq Marketplace Rule 5635(c)(4), stockholder approval was not obtained. A total of 2,000,000 shares of common stock are reserved for issuance pursuant to the 2024 Inducement Plan.
We recorded $ 64.1 million and $ 61.0 million of stock compensation expense on our condensed consolidated statements of operations for the three months ended March 31, 2026 and March 31, 2025, respectively. Stock compensation expense included within our condensed consolidated statements of operations included research and development expense of $ 39.2 million and $ 36.7 million for the three months ended March 31, 2026 and 2025, respectively. Stock compensation expense included within our condensed consolidated statements of operations also included selling, general and administrative expense of $ 24.0 million and $ 23.4 million for the three months ended March 31, 2026 and 2025, respectively. Stock compensation expense included within our condensed consolidated statements of operations also included cost of sales of $ 0.9 million and $ 0.9 million, respectively, for the three months ended March 31, 2026 and 2025.

18

Table of Contents

We utilized the Black-Scholes valuation model for estimating the fair value of the stock compensation granted, with the following weighted-average assumptions:

Employee Stock Options Employee Stock Purchase Plan
For the Three Months Ended For the Three Months Ended
March 31, March 31,
2026 2025 2026 2025
Average risk-free interest rates 3.75   % 4.38   % 3.72   % 4.23   %
Average expected life (in years) 4.71 4.66 0.50 0.50
Volatility 29   % 28   % 35   % 36   %
Weighted-average fair value (in dollars) $ 33.34   $ 22.67   $ 22.49   $ 17.03  

The risk-free interest rate is derived from the U.S. Federal Reserve rate in effect at the time of grant. The expected life calculation is based on the observed and expected time to the exercise of options by our employees based on historical exercise patterns for similar type options. Expected volatility is based on the historical volatility of our common stock over the period commensurate with the expected life of the options. A dividend yield of zero is assumed based on the fact that we have never paid cash dividends and have no present intention to pay cash dividends. Nonemployee awards are measured on the grant date by estimating the fair value of the equity instruments to be issued using the expected term, similar to our employee awards.
Option activity under our 2010 Stock Plan and 2024 Inducement Plan was as follows:

Shares Subject to
Outstanding Options
Shares Weighted Average
Exercise Price
Balance at December 31, 2025 10,859,861 $ 83.46  
Options granted 326,376 $ 105.89  
Options exercised ( 1,320,790 ) $ 76.76  
Options cancelled ( 154,099 ) $ 86.65  
Balance at March 31, 2026 9,711,348 $ 85.07  

Our annual stock option grants generally have a 10 -year term and vest over four years , with 25 % vesting after one year and the remainder vesting in 36 equal monthly installments, subject to customary retirement provisions that may accelerate the requisite service period for expense recognition purposes.
RSU and PSU award activity under the 2010 Stock Plan and 2024 Inducement Plan was as follows:

Shares Subject to
Outstanding Awards
Shares Grant Date Value
Balance at December 31, 2025 9,275,450 $ 66.86  
RSUs granted 281,129 $ 104.78  

RSUs released ( 235,796 ) $ 71.08  
PSUs released ( 18,750 ) $ 82.86  
RSUs cancelled ( 168,302 ) $ 67.16  
PSUs cancelled ( 16,599 ) $ 84.44  
Balance at March 31, 2026 9,117,132 $ 67.85  

19

Table of Contents

RSUs and PSUs are granted to our employees at the share price on the date of grant. Each RSU represents the right to acquire one share of our common stock. Each RSU granted in connection with our annual equity awards will vest 25 % annually over four years , while each RSU granted as outstanding merit awards or as part of retention award programs will vest in a single installment at the end of four years , subject to customary retirement provisions that may accelerate the requisite service period for expense recognition purposes.
We grant PSUs with performance and/or service-based milestones with graded and/or cliff vesting over three to six years . The shares of our common stock into which each PSU may convert is subject to a multiplier based on the level at which the financial, developmental and market performance conditions are achieved over the service period. Compensation expense for PSUs with financial and developmental performance conditions is recorded over the estimated service period for each milestone when the performance conditions are deemed probable of achievement. For PSUs containing performance conditions which were not deemed probable of achievement, no stock compensation expense is recorded. Compensation expense for PSUs with market performance conditions is calculated using a Monte Carlo simulation model as of the date of grant and recorded over the requisite service period. For the three months ended March 31, 2026 and March 31, 2025, we recorded $ 7.0 million and $ 3.1 million, respectively, of stock compensation expense for PSUs on our condensed consolidated statements of operations.
The following table summarizes our shares available for grant under the 2010 Stock Plan and 2024 Inducement Plan. Each RSU and PSU grant reduces the available share pool by one share.

Shares Available
for Grant
Balance at December 31, 2025 9,059,040

Options, RSUs and PSUs granted and issuance of shares for services rendered ( 608,460 )
Options, RSUs and PSUs cancelled 339,000
Balance at March 31, 2026 8,789,580

We estimate an annualized forfeiture rate for our options, RSUs and PSUs. Under the true-up provisions of the stock compensation guidance, we will record additional expense if the actual forfeiture rate is lower than we estimated, and will record a recovery of prior expense if the actual forfeiture is higher than we estimated.
Total compensation cost of options granted but not yet vested, as of March 31, 2026, was $ 24.3 million, which is expected to be recognized over the weighted average period of approximately 1.2 years. Total compensation cost of RSUs granted but not yet vested, as of March 31, 2026, was $ 221.6 million, which is expected to be recognized over the weighted average period of approximately 1.4 years. Total compensation cost of PSUs granted but not yet vested, as of March 31, 2026, was $ 32.5 million, which is expected to be recognized over the weighted average period of 2.1 years, should the underlying performance conditions be deemed probable of achievement.

Note 12. Income Taxes
For the three months ended March 31, 2026 and 2025, we recorded the following provisions for income taxes and effective tax rates as compared to our income before provision for income taxes (in thousands):

Three Months Ended
March 31,
2026 2025
Income before provision for income taxes $ 343,600   $ 234,190  
Provision for income taxes 40,270   75,987  

Effective tax rate 11.7 % 32.4 %

20

Table of Contents

Our effective tax rate for the three months ended March 31, 2026 is lower than the U.S. statutory rate primarily due to favorable changes in unrecognized tax benefits, tax benefits associated with the generation of tax credits and favorable foreign tax effects. This is partially offset by a net increase in valuation allowances against certain U.S. federal and state deferred tax assets. Our effective tax rate for the three months ended March 31, 2025 was higher than the U.S. statutory rate primarily due to an increase in valuation allowances against certain U.S. federal and state deferred tax assets and unfavorable foreign tax effects. This was partially offset by tax benefits associated with the generation of tax credits and favorable effects of cross-border tax laws.
The effective tax rate for the three months ended March 31, 2026, was favorable as compared to the three months ended March 31, 2025, primarily due to the recognition of previously unrecognized tax benefits and reversals of certain U.S. and foreign valuation allowances in the period ended March 31, 2026. In addition, the effective tax rate for the three months ended March 31, 2026 reflects the favorable impacts of the One Big Beautiful Bill Act (“OBBBA”) discussed below.
We accrue interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes.
One or more of our legal entities file income tax returns in the U.S. and in certain foreign jurisdictions. Our income tax returns may be examined by tax authorities in those jurisdictions. Significant disputes may arise with tax authorities involving issues such as the timing and amount of deductions, the use of tax credits and allocations of income and expenses among various tax jurisdictions because of differing interpretations of tax laws and regulations and relevant facts. In the U.S., the statute of limitations remains open beginning with tax year 2021. We were under U.S. federal audit for the 2021 tax year; during the first quarter of 2026, the federal audit for tax year 2021 was completed with no material matters identified.
The Organization for Economic Cooperation and Development Pillar 2 guidelines, supported by over 130 countries worldwide, establish a 15% global minimum tax on adjusted financial results. Pillar 2 legislation has been enacted in multiple jurisdictions in which we operate and became effective beginning in 2024. We have evaluated the impact of Pillar 2 on our business, and determined there are no material impacts on our effective tax rate at this time. We will continue to monitor additional enactments and guidance as they occur and assess any future impacts in the period they become effective.
In July 2025, the U.S. enacted the OBBBA, which modified certain provisions of the Tax Cuts and Jobs Act of 2017, including those related to the expensing of domestic research and development costs, the deduction for foreign-derived intangible income, and the global intangible low-taxed income regime. The OBBBA also introduced multiple elections related to the treatment of domestic research and development expenditures. As a result of these changes, we expect to fully deduct certain expenditures for which deferred tax assets had previously been recorded and, accordingly, no longer maintain a valuation allowance against such amounts. The absence of these deferred tax assets and related valuation allowance continues to have a favorable impact on our effective tax rate for the current period. We will continue to evaluate the application of the OBBBA’s various elections in connection with the preparation of our income tax return.

21

Table of Contents

Note 13. Net Income Per Share
Net income per share was calculated as follows for the periods indicated below:

Three Months Ended
March 31,
2026 2025
Basic net income $ 303,330   $ 158,203  

Weighted average common shares outstanding 199,343 193,712

Basic net income per share $ 1.52   $ 0.82  

Diluted net income $ 303,330   $ 158,203  

Weighted average common shares outstanding 199,343 193,712
Dilutive stock options and awards 7,487 4,485  
Weighted average shares used to compute diluted net income per share 206,830 198,197

Diluted net income per share $ 1.47   $ 0.80  

The potential common shares that were excluded from the diluted net income per share computation are as follows:

Three Months Ended
March 31,
2026 2025
Outstanding stock options and awards 2,504,249 11,075,503

Note 14. Employee Benefit Plans
Defined Contribution Plans
We have a defined contribution plan qualified under Section 401(k) of the Internal Revenue Code covering all U.S. employees and defined contribution plans for other Incyte employees in Europe and Japan. Employees may contribute a portion of their compensation, which is then matched by us, subject to certain limitations. Defined contribution expense for the three months ended March 31, 2026 and March 31, 2025 was $ 6.4 million and $ 5.8 million, respectively.
Defined Benefit Pension Plans
We have defined benefit pension plans for our employees in Europe which provide benefits to employees upon retirement, death or disability. The assets of the pension plans are held in collective investment accounts represented by the cash surrender value of an insurance policy and are classified as Level 2 within the fair value hierarchy.

22

Table of Contents

The net periodic benefit cost was as follows (in thousands):

Three Months Ended
March 31,
2026 2025
Service cost $ 4,087   $ 3,642  
Interest cost 695   437  
Expected return on plan assets ( 1,954 ) ( 1,672 )
Amortization of prior service cost 107   194  
Amortization of actuarial losses 127   318  
Net periodic benefit cost $ 3,062   $ 2,919  

The components of net periodic benefit cost other than the service cost component are included in Other, net on the condensed consolidated statements of operations. We expect to contribute a total of $ 12.6 million to the pension plans in 2026 inclusive of the amounts contributed to the plan during the current period.

Note 15. Commitments and Contingencies
Commitments
In August 2021, we entered into a revolving credit and guaranty agreement, which was subsequently amended in May 2023 and June 2024 (as amended, the “Credit Agreement”), among Incyte Corporation, as borrower, our subsidiary Incyte Holdings Corporation, as a guarantor, a group of lenders (the “Lenders”), and J.P. Morgan Chase Bank, N.A., as administrative agent. Under the Credit Agreement, the Lenders have committed to provide an unsecured revolving credit facility in an aggregate principal amount of up to $ 500.0 million. The June 2024 amendment to the Credit Agreement extended the maturity date of the revolving credit facility from August 2024 to June 2027. We may increase the maximum revolving commitments or add one or more incremental term loan facilities to the Credit Agreement, subject to obtaining commitments from any participating lenders and certain other conditions, in an amount not to exceed (1) $ 250.0 million plus (2) an additional amount, so long as after giving effect to the incurrence of such additional amount, our pro forma consolidated leverage ratio would not exceed 0.25 :1.00 above our consolidated leverage ratio in effect immediately prior to giving effect to such increase.
Loans under the Credit Agreement will bear interest, at our option, at a per annum rate equal to either (a) a base rate (but not less than 1.00 %) plus an applicable rate per annum varying from 0.125 % to 0.875 % depending on our consolidated leverage ratio or (b) a rate based on the secured overnight financing rate (“SOFR”) plus a credit spread adjustment of 0.10 % (but not less than 0.00 %), plus an applicable rate per annum varying from 1.125 % to 1.875 % depending on our consolidated leverage ratio. Commitment fees payable on the undrawn commitment range from 0.15 % per annum to 0.225 % per annum, based on our consolidated leverage ratio. We may, at our option, prepay any borrowings under the Credit Agreement, in whole or in part, at any time and from time to time without premium or penalty, subject to customary exceptions. As of March 31, 2026 and December 31, 2025, we had no outstanding borrowings or letters of credit outstanding and were in compliance with all covenants under this facility.
Contingencies
In the ordinary course of our business, we may become involved in lawsuits, proceedings, and other disputes, including commercial, intellectual property, regulatory, employment, and other matters. The outcome of these disputes, regardless of the merits, is inherently uncertain and it is possible that an unfavorable resolution of these matters could adversely affect us, our results of operations, financial condition or cash flows. We record a reserve for these matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated.
We have entered into the collaboration agreements described in Note 7, as well as various other collaboration agreements that are not individually, or in the aggregate, significant to our operating results or financial condition at this time. We may in the future seek to license additional rights relating to technologies or drug development candidates in connection with our drug discovery and development programs. Under these agreements, we may be required to pay upfront fees, milestone payments, and royalties on sales of future products.

23

Table of Contents

We brought a lawsuit against the U.S. Centers for Medicare and Medicaid Services (“CMS”) alleging that a regulation issued by CMS on the definition of “line extension” for purposes of the Medicaid rebate program is too broad and has the unintended consequence of treating OPZELURA as a “line extension” of JAKAFI under this program. We believe that such a reading would violate CMS’s statutory authority and be arbitrary and capricious given that OPZELURA, among other differentiators, is indicated to treat entirely different medical conditions and entirely different patient populations than JAKAFI. As of March 31, 2026, we have accrued approximately $ 245.9 million within accrued and other current liabilities on the condensed consolidated balance sheet, relating to the incremental rebates that would be owed were OPZELURA considered a line extension of JAKAFI. The impact on OPZELURA gross to net deductions for the quarter ending March 31, 2026 is approximately 8.4 %. If OPZELURA is not treated as a line extension of JAKAFI, this would result in a reversal of our accrual and a lower future gross to net deduction for OPZELURA.
In addition, we have various patent disputes and litigation initiated by us related to potential generic or other competition for our products, as described under Part II, Item 1A. “Risk Factors—Risks Relating to Commercialization of Our Products— Competition for our products could harm our business and result in a decrease in our revenue” below.

Note 16. Segment Information
We operate in one operating segment, and therefore one reportable segment, focused on the global discovery, development and commercialization of proprietary therapeutics. We manage business activities on a consolidated basis through the development and commercialization of oncology and dermatology products, which are sold to U.S. and international customers. Our determination that we operate as a single operating segment is consistent with the financial information regularly reviewed by the chief operating decision maker for purposes of evaluating performance, allocating resources, setting incentive compensation targets, and planning and forecasting for future periods. Our chief operating decision maker is the Chief Executive Officer.
The accounting policies for our single operating segment are the same as those described in the summary of significant accounting policies in our Annual Report on Form 10-K for the year ended December 31, 2025. Our single operating segment generates net sales from the development and commercialization of oncology and dermatology pharmaceutical products, which are developed by our research and development department, as well as from product royalties, milestone and contract revenues from the out-licensing of our intellectual property to third parties.
For our segment, the chief operating decision maker uses net income or loss, that also is reported on the condensed consolidated statements of operations as consolidated net income, to allocate resources (including employees, property, and financial resources), predominantly during the annual budget and forecasting process. The chief operating decision maker also uses consolidated net income or loss, along with non-financial inputs and qualitative information, to evaluate our performance, establish compensation, monitor budget versus actual results, and decide the level of investment in our various operating activities and other capital allocation activities. The measure of segment assets is reported on the condensed consolidated balance sheet as total consolidated assets.

24

Table of Contents

Net income for our segment was as follows (in thousands):

Three Months Ended
March 31,
2026 2025
Net sales $ 1,104,484   $ 922,274  
Product royalty revenues 151,192   130,624  
Milestone and contract revenues 17,000   —  
Total revenues 1,272,676   1,052,898  

Costs, expenses and other:
Cost of sales (including definite-lived intangible amortization) 104,523   73,188  

Research and development - internal 1
260,176   228,345  
Research and development - external 2
243,127   193,434  
Other research and development 3
12,600   15,500  
Sales and marketing 259,563   257,652  
General and administrative 68,524   68,039  
Asset impairment and related disposal costs 23,214   —  
(Gain) loss on change in fair value of acquisition-related contingent consideration ( 168 ) 11,572  
Other segment items 4
( 2,213 ) 46,965  
Net income $ 303,330   $ 158,203  

1. Research and development - internal is comprised of internally generated costs such as salaries, travel, regulatory costs, lab costs, contracting, etc.
2. Research and development - external is comprised of specific program spend with external vendors (i.e. contract manufacturing organizations, contract research organizations and lab vendors for clinical, technical operations and toxicology services).
3. Other research and development is comprised of all other costs including certain one-time costs resulting from the acquisition of IPR&D assets and one-time development milestone expenses.
4. Other segment items is comprised of interest income, interest expense, realized and unrealized gain (loss) on equity investments, other, net, and provision for income taxes .
Total Revenues by Geographic Location
Total revenues by geographic region consisted of the following (in thousands):

Three Months Ended March 31,
2026 2025
United States $ 1,171,468   $ 981,557  
Europe 92,429   68,612  
Other countries 8,779   2,729  
Total revenues $ 1,272,676   $ 1,052,898  

25

Table of Contents

Property and Equipment, Net by Geographic Location
Property and equipment, net by geographic location was as follows (in thousands):

March 31,
2026 December 31,
2025
United States $ 401,338   $ 406,829  
Switzerland 304,818   309,802  
Other countries 14,013   14,254  
Total property and equipment, net $ 720,169   $ 730,885  

26

Table of Contents

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion of our financial condition and results of operations as of and for the three months ended March 31, 2026 should be read in conjunction with the unaudited condensed consolidated financial statements and notes to those statements included elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements as of and for the year ended December 31, 2025 included in our Annual Report on Form 10-K for the year ended December 31, 2025 previously filed with the SEC.

Forward-Looking Statements
This report contains forward-looking statements that involve risks and uncertainties. These statements relate to future periods, future events or our future operating or financial plans or performance. Often, these statements include the words “believe,” “expect,” “target,” “anticipate,” “intend,” “plan,” “seek,” “estimate,” “potential,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” or “may,” or the negative of these terms, and other similar expressions. These forward-looking statements include, among other things, statements as to:
• the discovery, development, formulation, manufacturing and commercialization of our compounds, our drug candidates and JAKAFI ® /JAKAVI ® (ruxolitinib), PEMAZYRE ® (pemigatinib), ICLUSIG ® (ponatinib), MONJUVI ® (tafasitamab-cxix) / MINJUVI ® (tafasitamab), OPZELURA ® (ruxolitinib) cream, ZYNYZ ® (retifanlimab-dlwr) and NIKTIMVO TM (axatilimab);
• our collaboration and strategic relationship strategy, and anticipated benefits and disadvantages of entering into collaboration agreements;
• our licensing, investment and commercialization strategies, including our plans to commercialize our drug products and drug candidates;
• the regulatory approval process, including obtaining U.S. Food and Drug Administration and other international regulatory authorities’ approval for our products in the United States and abroad;
• the safety, effectiveness and potential benefits and indications of our drug candidates and other compounds under development;
• the timing, structure and size of our clinical trials; the compounds expected to enter clinical trials; the nature and timing of clinical trial results;
• our ability to manage expansion of our drug discovery and development operations;
• future required expertise relating to clinical trials, manufacturing, sales and marketing;
• obtaining and terminating licenses to products, drug candidates or technology, or other intellectual property rights;
• the receipt from or payments pursuant to collaboration or license agreements resulting from milestones or royalties;
• plans to develop and commercialize products on our own;
• plans for our manufacturing operations, including plans relating to the use of third-party manufacturers;
• expected expenses and expenditure levels; expected uses of cash; expected revenues and sources of revenues; expectations with respect to inventory;
• expectations with respect to reimbursement for our products; expectations with respect to the impact on our revenues of U.S. or other government proposals regarding drug pricing;
• the expected impact of recent accounting pronouncements and changes in tax laws;
• expected losses; the fluctuation of losses; the currency translation impact associated with non-U.S. operations and collaboration royalties;
• our profitability; the adequacy of our capital resources to continue operations; our expectations with respect to the need or ability to raise additional capital;
• the costs and other financial impacts associated with resolving matters in litigation and governmental proceedings;

27

Table of Contents

• our expectations regarding competition;
• our investments, including anticipated expenditures, losses and expenses; and
• our patent prosecution and maintenance efforts.
These forward-looking statements reflect our current views with respect to future events, are based on assumptions and are subject to risks and uncertainties. These risks and uncertainties could cause actual results to differ materially from those projected and include, but are not limited to:
• our ability to discover, develop, formulate, manufacture and successfully commercialize our drug products and drug candidates;
• our ability to obtain, or maintain at anticipated levels, coverage and reimbursement for our products from government health administration authorities, private health insurers and other organizations;
• changes in drug pricing and reimbursement in the markets in which we or our collaborators and licensees commercialize our drug products;
• our ability to establish and maintain effective sales, marketing and distribution capabilities;
• our ability to obtain and maintain regulatory approvals to market our products;
• our ability to achieve a significant market share in order to achieve or maintain profitability;
• civil or criminal penalties if we market our products in a manner that violates healthcare fraud and abuse and other applicable laws, rules and regulations;
• unanticipated delays in, or discontinuations of, research and development efforts;
• that previous preclinical testing or clinical trial results are not necessarily indicative of future clinical trial results;
• the conduct of our clinical trials, including geopolitical risks;
• changing regulatory requirements;
• adverse safety findings;
• that results of our clinical trials do not support submission of a marketing approval application for our drug candidates;
• our reliance on third-party manufacturers, collaborators, and clinical research organizations;
• the development of new products and their use by us and our current and potential collaborators;
• our ability to maintain or obtain adequate product liability and other insurance coverage;
• the impact of technological advances and competition to develop and commercialize drug products similar to our own, including potential generic competition;
• our ability to obtain and maintain patent protection and freedom to operate for our discoveries and to continue to be effective in prosecuting, maintaining, defending and enforcing patent claims and other intellectual property rights;
• the impact of changing laws on our patent portfolio;
• developments in, and expenses relating to, litigation and governmental proceedings;
• our ability to in-license drug candidates or other technology;
• unanticipated delays or changes in plans or regulatory agency interactions or other issues relating to our large molecule production facility;
• the impact of tariffs and trade conflicts and the effects of any economic slowdown;
• our ability to integrate successfully acquired businesses, development programs or technology;
• our ability to obtain additional capital when needed;
• fluctuations in net cash provided and used by operating, financing and investing activities;

28

Table of Contents

• changes in tax laws and regulations and our ability to analyze the effects of new accounting pronouncements and apply new accounting rules;
• our ability to sustain profitability;
• public health pandemics such as the COVID-19 pandemic, natural disasters, or geopolitical events such as the Russian invasion of Ukraine and conflicts in the Middle East; and
• the risks set forth under “Risk Factors” in Item 1A of this Quarterly Report on Form 10-Q.
Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements. Except as required by federal securities laws, we undertake no obligation to update any forward-looking statements for any reason, even if new information becomes available or other events occur in the future.
In this report all references to “Incyte,” “we,” “us,” “our” or the “Company” mean Incyte Corporation and our subsidiaries, except where it is made clear that such term means only the parent company.
Incyte, JAKAFI, MINJUVI, MONJUVI, OPZELURA, PEMAZYRE and ZYNYZ are our registered trademarks and NIKTIMVO and JAKAFI XR are our trademarks. We also refer to trademarks of other corporations and organizations in this Quarterly Report on Form 10-Q.

29

Table of Contents

Summary Risk Factors
Our business is subject to numerous risks and uncertainties that could affect our ability to successfully implement our business strategy and affect our financial results. You should carefully consider all of the information in this report and, in particular, the following principal risks and all of the other specific factors described in Item 1A. “Risk Factors” of this report before deciding whether to invest in our company.
• We depend heavily on our lead product, JAKAFI (ruxolitinib), which is marketed as JAKAVI outside the United States. If we are unable to maintain revenues from JAKAFI/JAKAVI or those revenues decrease, our business may be materially harmed.
• If we or our collaborators are unable to obtain, or maintain at anticipated levels, coverage and reimbursement for our products from government health administration authorities, private health insurers and other organizations, our pricing may be affected and our product sales, results of operations and financial condition could be harmed.
• We depend upon a limited number of specialty pharmacies and wholesalers for a significant portion of any revenues from JAKAFI and most of our other drug products, and the loss of, or significant reduction in sales to, any one of these specialty pharmacies or wholesalers could adversely affect our operations and financial condition.
• If we are unable to establish and maintain effective sales, marketing and distribution capabilities, or to enter into agreements with third parties to do so, we will not be able to successfully commercialize our products.
• If we fail to comply with applicable laws and regulations, we could lose our approval to market our products or be subject to other governmental enforcement activity, and we could face increased costs, penalties and a loss of business.
• If we market our products in a manner that violates various laws and regulations, we may be subject to civil or criminal penalties.
• Competition for our products could harm our business and result in a decrease in our revenue.
• We or our collaborators may be unsuccessful in our efforts to discover and develop drug candidates and commercialize drug products.
• If we or our collaborators are unable to obtain regulatory approval for our drug candidates in the United States or foreign jurisdictions, we or our collaborators will not be permitted to commercialize products resulting from our research.
• Healthcare reform measures could impact the pricing and profitability of pharmaceuticals, and adversely affect the commercial viability of our or our collaborators’ products and drug candidates.
• If we are unable to establish collaborations to fully exploit our drug discovery and development capabilities or if such collaborations are unsuccessful, our research, development and commercialization efforts may be unsuccessful, which could adversely affect our results of operations, financial condition and future revenue prospects.
• If we fail to enter into additional licensing agreements or if these arrangements are unsuccessful, our business and operations may be adversely affected.
• Even if a drug candidate that we develop receives regulatory approval, we may decide not to commercialize it if we determine that commercialization of that product would require more money and time than we are willing to invest.
• We have limited capacity to conduct preclinical testing and clinical trials, and our resulting dependence on other parties could result in delays in and additional costs for our drug development efforts.
• Our reliance on third parties for manufacture of certain of our drug products and drug candidates could result in short supply of the drugs, delays in clinical trials or drug development, increased costs, and withdrawal or denial of a regulatory authority’s approval.

30

Table of Contents

• The illegal distribution and sale by third parties of counterfeit or unfit versions of our or our collaborators’ products or stolen products could harm our business and reputation.
• As most of our drug discovery and development operations are conducted at our headquarters in Wilmington, Delaware, the loss of access to this facility would negatively impact our business.
• The loss of the services of any of our key employees or our inability to attract and retain additional personnel would affect our ability to expand our drug discovery and development programs and achieve our objectives.
• If we fail to manage our growth effectively, our ability to develop and commercialize products could suffer.
• We may acquire businesses or assets, form joint ventures or make investments in other companies that may be unsuccessful, divert our management’s attention and harm our operating results and prospects.
• Risks associated with our operations outside of the United States could adversely affect our business.
• If product liability lawsuits are brought against us, we could face substantial liabilities and may be required to limit commercialization of our products and our results of operations could be harmed.
• Because our activities involve the use of hazardous materials, we may be subject to claims relating to improper handling, storage or disposal of these materials that could be time consuming and costly.
• We may incur losses in the future, and we expect to continue to incur significant expenses to discover and develop drugs, which may make it difficult for us to achieve sustained profitability on a quarterly or annual basis in the future.
• We may need additional capital in the future. If we are unable to generate sufficient funds from operations, the capital markets may not permit us to raise additional capital at the time that we require it, which could result in limitations on our research and development or commercialization efforts or the loss of certain of our rights in our technologies or drug candidates.
• Our marketable securities and equity investments are subject to risks that could adversely affect our overall financial position, and changes in tax laws or regulations could adversely affect our results of operations, business and financial condition.
• If we are unable to achieve milestones, develop product candidates to license or renew or enter into new collaborations, our revenues may decrease, and future milestone and royalty payments may not contribute significantly to revenues for several years, and may never result in revenues.
• If we are subject to arbitration, litigation and infringement claims, they could be costly and disrupt our drug discovery and development efforts.
• We may be unable to adequately protect or enforce our proprietary information, which may result in its unauthorized use, a loss of revenue under a collaboration agreement or loss of sales to generic versions of our products or otherwise reduce our ability to compete in developing and commercializing products.
• If the effective term of our patents is decreased or if we need to refile some of our patent applications, the value of our patent portfolio and the revenues we derive from it may be decreased.
• International patent protection is particularly uncertain and costly, and our involvement in opposition proceedings may result in the expenditure of substantial sums and management resources.
• Significant disruptions of information technology systems, breaches of data security or unauthorized disclosures of personal information (including sensitive personal information) could adversely affect our business, and could subject us to liability or reputational damage.
• Increasing use of social media could give rise to liability, breaches of data security, or reputational damage.
• Increasing use of artificial intelligence-based software and tools creates new risks and challenges that could adversely affect our business or cause reputational harm.

31

Table of Contents

Overview
Incyte is a global biopharmaceutical company engaged in the discovery, development and commercialization of proprietary therapeutics. Our global headquarters is located in Wilmington, Delaware, where we conduct discovery, clinical development and commercial operations. We also conduct clinical development and commercial operations from our European headquarters in Morges, Switzerland, and our other offices across Europe, as well as our Japanese headquarters in Tokyo and our Canadian headquarters in Montreal.
We are focused in three therapeutic areas that are defined by the indications of our approved medicines and the diseases for which our clinical candidates are being developed. These therapeutic areas are: Hematology, Oncology, and Inflammation and Autoimmunity (“IAI”).
Hematology
Our hematology franchise includes four approved products, JAKAFI (ruxolitinib), ICLUSIG (ponatinib), MONJUVI (tafasitamab-cxix)/MINJUVI (tafasitamab) and NIKTIMVO (axatilimab-csfr), as well as multiple clinical development programs.
Approved Products
JAKAFI (ruxolitinib)
JAKAFI (ruxolitinib) was approved by the U.S. Food and Drug Administration (“FDA”) in November 2011 for the treatment of adults with intermediate or high-risk myelofibrosis (“MF”); in December 2014 for the treatment of adults with polycythemia vera (“PV”) who have had an inadequate response to or are intolerant of hydroxyurea; in May 2019 for the treatment of steroid-refractory acute graft-versus-host disease ( “ GVHD ” ) in adult and pediatric patients 12 years and older; and in September 2021 for the treatment of chronic GVHD after failure of one or two lines of systemic therapy in adult and pediatric patients 12 years and older . MF and PV are both myeloproliferative neoplasms (“MPNs”), a group of rare blood cancers, and GVHD is an adverse immune response to an allogeneic hematopoietic stem cell transplant (“HSCT”).
The FDA has granted JAKAFI orphan drug status for MF, PV and GVHD. In addition, ruxolitinib phosphate qualifies for the Small Biotech Exception from the Centers for Medicare and Medicaid Services (“CMS”) under the Inflation Reduction Act.
Myelofibrosis. MF, a rare, life-threatening condition, is considered the most serious of the MPNs and can occur either as primary MF or as secondary MF in patients who previously had PV or essential thrombocythemia (“ET”). In November 2011, the FDA approved JAKAFI for the treatment of adults with intermediate or high-risk MF, including primary MF, post-PV MF and post-ET MF. There were no FDA approved therapies for MF until the approval of JAKAFI.
Polycythemia Vera. PV is an MPN typically characterized by elevated hematocrit, the volume percentage of red blood cells in whole blood, which can lead to a thickening of the blood and an increased risk of blood clots, as well as an elevated white blood cell and platelet count. In December 2014, the FDA approved JAKAFI for the treatment of patients with PV who have had an inadequate response to or are intolerant of hydroxyurea.
Graft-versus-host disease. GVHD is a condition that can occur after an allogeneic HSCT (the transfer of genetically dissimilar stem cells or tissue) where the donated bone marrow or peripheral blood stem cells view the recipient’s body as foreign and attack various tissues. In May 2019, the FDA approved JAKAFI for the treatment of steroid-refractory acute GVHD in adult and pediatric patients 12 years and older. In September 2021, the FDA approved JAKAFI for the treatment of chronic GVHD after failure of one or two lines of systemic therapy in adult and pediatric patients 12 years and older.
Under our collaboration agreement with Novartis Pharmaceutical International Ltd. (“Novartis”), Novartis received exclusive development and commercialization rights to ruxolitinib outside of the United States for all hematologic and oncologic indications and sells ruxolitinib outside of the United States under the name JAKAVI. We are eligible to receive development and sales milestones as well as royalties from product sales outside the United States.

32

Table of Contents

We have retained all development and commercialization rights to JAKAFI in the United States. We market JAKAFI in the United States through our own specialty sales force and commercial team. JAKAFI is distributed primarily through a network of specialty pharmacy providers and wholesalers that allow for efficient delivery of the medication by mail directly to patients or direct delivery to the patient’s pharmacy.
We hold patents that cover the composition of matter and use of ruxolitinib and its salt. These patents, including applicable extensions, currently expire in mid and late 2028, respectively.
ICLUSIG (ponatinib)
In June 2016, we acquired the European operations of ARIAD Pharmaceuticals, Inc. and obtained an exclusive license to develop and commercialize ICLUSIG (ponatinib), a kinase inhibitor, in Europe and other select countries. The primary target for ICLUSIG is BCR-ABL, an abnormal tyrosine kinase that is expressed in chronic myeloid leukemia (“CML”) and Philadelphia-chromosome positive acute lymphoblastic leukemia (“Ph+ ALL”).
In the European Union, ICLUSIG is approved for the treatment of adult patients with chronic phase, accelerated phase or blast phase CML who are resistant to dasatinib or nilotinib; who are intolerant to dasatinib or nilotinib and for whom subsequent treatment with imatinib is not clinically appropriate; or who have the T315I mutation. In the European Union, ICLUSIG also is approved for the treatment of adult patients with Ph+ ALL who are resistant to dasatinib; who are intolerant to dasatinib and for whom subsequent treatment with imatinib is not clinically appropriate; or who have the T315I mutation.
MONJUVI (tafasitamab-cxix) / MINJUVI (tafasitamab)
In January 2020, we and MorphoSys AG (“MorphoSys”) entered into a collaboration and license agreement to further develop and commercialize MorphoSys’ proprietary anti-CD19 antibody tafasitamab (formerly MOR208) globally. In February 2024, we entered into a purchase agreement with MorphoSys relating to tafasitamab. As a result, we now hold exclusive global rights for tafasitamab, and the collaboration and license agreement was terminated.
Diffuse Large B-cell Lymphoma. In July 2020, the FDA approved MONJUVI (tafasitamab-cxix), in combination with lenalidomide, for the treatment of adult patients with relapsed or refractory (“r/r”) diffuse large B-cell lymphoma (“DLBCL”) not otherwise specified, including DLBCL arising from low grade lymphoma, and who are not eligible for autologous stem cell transplant (“ASCT”). In August 2021, the European Commission granted conditional marketing authorization for MINJUVI (tafasitamab) in combination with lenalidomide, followed by MINJUVI monotherapy, for the treatment of adult patients with r/r DLBCL who are not eligible for ASCT.
Follicular Lymphoma. In June 2025, MONJUVI (tafasitamab-cxix) was approved by the FDA for the treatment of adult patients with r/r follicular lymphoma (“FL”) in combination with rituximab and lenalidomide. In December 2025, MINJUVI (tafasitamab) was approved by the European Commission in combination with lenalidomide and rituximab for the treatment of adult patients with r/r FL (Grade 1-3a) after at least one line of systemic therapy. Also in December 2025, MINJUVI (tafasitamab) was approved by Japan’s Ministry of Health, Labour and Welfare (“MHLW”) in combination with rituximab and lenalidomide for adult patients with r/r FL (2L+ FL).
NIKTIMVO (axatilimab-csfr)
In September 2021, we entered into an exclusive worldwide collaboration and license agreement with Syndax Pharmaceuticals, Inc. (“Syndax”) to develop and commercialize axatilimab, Syndax’s anti-CSF-1R monoclonal antibody.
In August 2024, the FDA approved NIKTIMVO (axatilimab-csfr) for the treatment of chronic GVHD after failure of at least two prior lines of systemic therapy in adult and pediatric patients. NIKTIMVO is the first approved anti-CSF-1R antibody targeting the drivers of inflammation and fibrosis seen in chronic GVHD. The U.S. commercial launch of NIKTIMVO commenced in January 2025.

33

Table of Contents

Clinical Programs in Hematology
JAKAFI XR
We are developing a once-a-day formulation of ruxolitinib for potential use as monotherapy and in combinations. Bioavailability and bioequivalence data were published for ruxolitinib’s once-daily (“QD”) extended release (“XR”) formulation at the European Hematology Association Virtual Congress in June 2021. In March 2023, the FDA issued a complete response letter (“CRL”) for ruxolitinib XR tablets for QD use in the treatment of certain types of MF, PV and GVHD. In December 2023, we received FDA feedback and agreed on the requirements to address the CRL. In early 2025, we announced that a bioequivalence study of ruxolitinib XR was completed and the bioequivalence criteria were met. A response to the CRL has been submitted and we anticipate a regulatory decision and potential commercial launch in mid-2026 .
INCA033989 (mutCALR)
INCA033989 is an Incyte-discovered, investigational, novel, anti-mutant calreticulin (“CALR”)-targeted monoclonal antibody in clinical development for the treatment of adults with mutCALR-positive ET and MF.
Essential Thrombocythemia. INCA033989 is being evaluated for the treatment of adults with mutCALR-positive ET who are resistant or intolerant to at least one cytoreductive therapy. In 2025, we presented data from our Phase 1 study demonstrating a rapid and durable normalization of platelet counts and a reduction in peripheral blood mutCALR variant allele frequency (“VAF”) correlating with hematologic response with INCA033989 treatment. INCA033989 was well tolerated with no dose limiting toxicities reported. In December 2025, we announced that the FDA granted Breakthrough Therapy designation to INCA033989 for the treatment of patients with ET harboring a Type 1 CALR mutation who are resistant or intolerant to at least one cytoreductive therapy. Based on positive feedback received from the FDA during the first quarter of 2026, a Phase 3 registrational study evaluating INCA033989 in Type 1 and non-Type 1 mutCALR positive patients with ET is on track to initiate in mid 2026.
Myelofibrosis. INCA033989 is being evaluated for the treatment of adults with mutCALR-positive MF. In December 2025, at the 2025 American Society of Hematology Annual Meeting, we presented data from our Phase 1 studies evaluating INCA033989 as a monotherapy and in combination with ruxolitinib in patients with mutCALR positive MF. The data demonstrated rapid and robust reductions in spleen volume and symptoms, and improvements in anemia with INCA033989 treatment, and a favorable safety profile with no dose limiting toxicities reported. Additionally, exploratory analyses from clinical studies demonstrate the potential for disease modifying activity by directly inhibiting and eliminating oncogenic mutCALR cells, while sparing healthy cells and restoring normal blood cell production in MF patients with a CALR mutation. The planned initiation of a Phase 3 trial evaluating INCA033989 in MF is anticipated in the second half of 2026.
In October 2025, we announced an agreement with Enable Injections, Inc. (“Enable”) to develop for use with specific assets in our portfolio, including INCA033989, Enable’s enFuse on-body delivery system. Under the terms of the agreement, we obtained a worldwide, exclusive license to use the enFuse technology with INCA033989 in ET and MF, with the potential to expand to additional assets and indications . In the first quarter of 2026, a Phase 1 study evaluating the pharmacokinetics, safety and tolerability of INCA033989 as a subcutaneous (“SC”) administration in healthy adult participants was initiated and completed. A Phase 1 study evaluating INCA033989 as a SC administration in mutCALR positive patients is anticipated to initiate mid-year 2026.
INCA035784 (mutCALRxCD3 bispecific)
INCA035784 is a novel, equipotent T-cell redirecting mutCALR x CD3 bispecific antibody being evaluated for patients with mutCALR positive MPNs. Phase 1 data evaluating INCA035784 in MF and ET patients with a CALR mutation are anticipated in 2027.
INCB160058 (JAK2V617Fi)
INCB160058 is an Incyte-discovered, novel JAK2V617F mutant-specific inhibitor being evaluated in patients with MPNs harboring a JAK2V617F mutation. In the first quarter of 2026, we initiated dosing of the amorphous solid dispersion (“ASD”) formulation of INCB160058 in the Phase 1 trial. Results from the Phase 1 trial evaluating INCB160058 in MPN patients with a JAK2V617F mutation are anticipated in the second half of 2026.

34

Table of Contents

Axatilimab-csfr
Axatilimab is a colony stimulating factor-1 receptor (CSF-1R)-blocking antibody targeting monocytes and macrophages, reducing inflammation and fibrosis associated with chronic GVHD. A Phase 2 trial evaluating axatilimab in combination with ruxolitinib in patients with newly diagnosed chronic GVHD is ongoing, with results anticipated in the second half of 2026. A Phase 3 trial evaluating axatilimab in combination with corticosteroids as an initial treatment in patients with chronic GVHD is ongoing, with results anticipated in early 2028.
Tafasitamab
Tafasitamab is a humanized Fc-modified cytolytic CD19 targeting monoclonal antibody that is being evaluated in combination with lenalidomide added to rituximab plus chemotherapy as a first-line therapy for patients with DLBCL.
In January 2026, we announced positive topline results from the pivotal Phase 3 frontMIND trial evaluating tafasitamab and lenalidomide in combination with R-CHOP as a first-line therapy for patients with DLBCL. The trial met the primary endpoint of progression free survival by investigator assessment and also met the key secondary endpoint of event-free survival by investigator assessment. No new safety signals were observed. Additional frontMIND data will be presented at an upcoming scientific meeting. Based on these positive results, we expect to file a supplemental Biologics License Application for tafasitamab and lenalidomide in addition to R-CHOP for the first-line treatment of adult patients with newly diagnosed DLBCL in the first half of 2026.
Oncology
Our oncology franchise includes two approved products, PEMAZYRE (pemigatinib) and ZYNYZ (retifanlimab-dlwr), as well as several clinical development programs.
Approved Products
PEMAZYRE (pemigatinib)
Cholangiocarcinoma. In April 2020, the FDA approved PEMAZYRE (pemigatinib), a selective fibroblast growth factor receptor kinase inhibitor, for the treatment of adults with previously treated, unresectable locally advanced or metastatic cholangiocarcinoma with a fibroblast growth factor receptor 2 (“FGFR2”) fusion or other rearrangement as detected by an FDA-approved test. Cholangiocarcinoma is a rare cancer that arises from the cells within the bile ducts. PEMAZYRE is the first FDA-approved treatment for this indication.
In March 2021, PEMAZYRE was approved by the MHLW for the treatment of patients with unresectable biliary tract cancer with an FGFR2 fusion gene, worsening after cancer chemotherapy. Also in March 2021, PEMAZYRE was approved by the European Commission for the treatment of adults with locally advanced or metastatic cholangiocarcinoma with an FGFR2 fusion or rearrangement that has progressed after at least one prior line of systemic therapy.
In July 2021, the U.K.’s National Institute for Health and Care Excellence (“NICE”) recommended PEMAZYRE for patients with cholangiocarcinoma with an FGFR2 fusion or rearrangement that have progressed after at least one prior line of systemic therapy. NICE’s guidance enables all eligible patients in England and Wales to have access to PEMAZYRE through the National Health Service.
In March 2022, PEMAZYRE was approved by the National Medical Products Administration of the People’s Republic of China for the treatment of adults with locally advanced or metastatic cholangiocarcinoma with an FGFR2 fusion or rearrangement as confirmed by a validated diagnostic test that has progressed after at least one prior line of systemic therapy.
Myeloid/Lymphoid Neoplasms . In August 2022, PEMAZYRE was approved by the FDA as the first and only targeted treatment for myeloid/lymphoid neoplasms (“MLNs”) with a fibroblast growth factor receptor 1 (“FGFR1”) rearrangement. MLNs with FGFR1 rearrangements are a group of extremely rare but aggressive blood cancers. In March 2023, PEMAZYRE was approved by the MHLW for the treatment of MLNs with FGFR1 rearrangement.

35

Table of Contents

ZYNYZ (retifanlimab-dlwr)
In October 2017, we and MacroGenics, Inc. (“MacroGenics”), announced an exclusive global collaboration and license agreement for MacroGenics’ retifanlimab (formerly INCMGA0012), a humanized monoclonal antibody targeting programmed death receptor-1 (“PD-1”). Under this collaboration, we obtained exclusive worldwide rights for the development and commercialization of retifanlimab in all indications.
Merkel Cell Carcinoma. In March 2023, the FDA approved ZYNYZ (retifanlimab-dlwr) under accelerated approval for the treatment of adults with metastatic or recurrent locally advanced Merkel cell carcinoma (“MCC”). In April 2024, the European Commission approved ZYNYZ (retifanlimab) as a monotherapy for the first-line treatment of adult patients with metastatic or recurrent locally advanced MCC not amenable to curative surgery or radiation therapy.
Squamous Cell Carcinoma of the Anal Canal. In May 2025, the FDA approved ZYNYZ for the treatment of adult patients with advanced squamous cell carcinoma of the anal canal (“SCAC”) in combination with chemotherapy and as a single agent. In December 2025, the MHLW approved ZYNYZ in combination with carboplatin and paclitaxel (platinum-based chemotherapy) for the first-line treatment of advanced SCAC. In March 2026, the European Commission approved ZYNYZ in combination with carboplatin and paclitaxel (platinum-based chemotherapy) for the first-line treatment of adult patients with metastatic or with inoperable locally recurrent SCAC.
Clinical Programs in Oncology
INCB123667 (CDK2)
INCB123667 is a novel, potent and selective oral small molecule inhibitor of serine threonine kinase (CDK2) in clinical development for the treatment of ovarian cancer in patients with Cyclin E1 overexpression.
In the fourth quarter of 2025, we initiated MAESTRA-1, a Phase 2 single-arm study of INCB123667 in patients with platinum-resistant ovarian cancer (“PROC”) with Cyclin E1 overexpression, and MAESTRA-2, a Phase 3, randomized, open-label study of INCB123667 versus investigator’s choice chemotherapy in patients with PROC with Cyclin E1 overexpression. The initiation of a Phase 3 study evaluating INCB123667 in first-line maintenance ovarian cancer is anticipated in the second half of 2026.
INCB161734 (KRAS G12D)
INCB161734 is a potent, selective and orally bioavailable KRAS G12D inhibitor that is currently being evaluated in patients with locally advanced or metastatic solid tumors with KRASG12D mutation.
Pancreatic Ductal Adenocarcinoma. In October 2025, we presented preliminary data from the ongoing Phase 1 study at the 2025 ESMO Congress. In the study, INCB161734 demonstrated a manageable safety profile and clinical efficacy in heavily pretreated pancreatic ductal adenocarcinoma (“PDAC”) patients with a KRASG12D mutation. In the first quarter of 2026, a Phase 3 study (DAWN-303) was initiated, evaluating INCB161734 as a first-line treatment in patients with metastatic PDAC in combination with standard-of-care chemotherapy (mFOLFIRINOX or GEMNabP) versus chemotherapy alone. Additional data from the ongoing Phase 1 trial evaluating INCB161734 in combination with standard-of-care chemotherapy as a first-line treatment in patients with metastatic PDAC are anticipated in the second half of 2026.
INCA33890 (TGFβR2xPD-1)
INCA33890 is a TGFβR2xPD-1 bispecific antibody developed by Incyte using Merus’s licensed bispecific platform to avoid the known toxicity of broad TGFβ pathway blockade by specifically blocking TGFβ signaling in cells co-expressing PD-1.
Microsatellite Stable Colorectal Cancer. In October 2025, we presented data from the ongoing Phase 1 study at the 2025 ESMO Congress. INCA33890 demonstrated clinical efficacy across multiple tumor types, including microsatellite stable colorectal cancer (“MSS CRC”) in patients with and without active liver metastases. INCA33890 was generally well tolerated as monotherapy and in combination with standard-of-care treatments in patients with metastatic CRC.

36

Table of Contents

In the fourth quarter of 2025, a Phase 3 study evaluating INCA33890 in combination with standard-of-care chemotherapy and bevacizumab as a first-line treatment in patients with MSS CRC was initiated. Additional data from the ongoing Phase 1 study evaluating INCA33890 in combination with bevacizumab and/or chemotherapy in patients with solid tumors is expected in the second half of 2026.
Inflammation and Autoimmunity
Our Inflammation and Autoimmunity franchise is comprised of one approved product, OPZELURA (ruxolitinib) cream, with several clinical programs in development.
Approved Products
OPZELURA (ruxolitinib) cream
Atopic Dermatitis . In September 2021, the FDA approved OPZELURA (ruxolitinib) cream for the topical short-term and non-continuous chronic treatment of mild to moderate atopic dermatitis (“AD”) in non-immunocompromised patients 12 years of age and older whose disease is not adequately controlled with topical prescription therapies, or when those therapies are not advisable. AD is a skin disorder that causes long term inflammation of the skin resulting in itchy, red, swollen and cracked skin.
In September 2025, the FDA approved the supplemental New Drug Application (“NDA”) for OPZELURA for the short-term and non-continuous chronic treatment of mild to moderate AD in non-immunocompromised children two years of age and older whose disease is not well controlled with topical prescription therapies, or when those therapies are not advisable.
Vitiligo. In July 2022, the FDA approved OPZELURA for the topical treatment of nonsegmental vitiligo in adult and pediatric patients 12 years of age and older. Vitiligo is a chronic autoimmune depigmenting skin disease characterized by patches of the skin losing their pigment. OPZELURA is the first and only FDA approved treatment for repigmentation of vitiligo lesions. OPZELURA was approved for continuous use and no limits to duration as a treatment for nonsegmental vitiligo.
In April 2023, the European Commission approved OPZELURA for the topical treatment of nonsegmental vitiligo with facial involvement in adults and adolescents 12 years and older following a positive opinion from the CHMP. In October 2024, OPZELURA cream 1.5% was granted a Notice of Compliance by Health Canada for the topical treatment of both mild to moderate AD and nonsegmental vitiligo in patients 12 years of age and older.
Clinical Programs in IAI
Ruxolitinib cream
Ruxolitinib cream is a potent, selective inhibitor of JAK1 and JAK2 that provides the opportunity to directly target diverse pathogenic pathways that underlie certain immune-mediated dermatologic conditions.
Atopic Dermatitis. In July 2025, we announced positive topline results from the Phase 3 (TRuE-AD4) study evaluating ruxolitinib cream in adult patients with moderate atopic dermatitis. The study met the co-primary endpoints at Week 8, with a statistically significant proportion of patients achieving both Investigator’s Global Assessment Treatment Success and EASI75, which is defined as a 75% or greater improvement in the Eczema Area Severity Index score from baseline. In addition, the study met all key secondary endpoints. Ruxolitinib cream was well tolerated with no new safety signals. At the end of 2025, a Type-II variation application for the treatment of adults with moderate AD was submitted in Europe and we anticipate a potential approval in the second half of 2026.
Hidradenitis Suppurativa. In January 2024, we announced positive topline results from a randomized controlled Phase 2 study evaluating ruxolitinib cream in hidradenitis suppurativa (“HS”). Ruxolitinib 1.5% cream twice daily met the primary efficacy endpoint as measured by a change from baseline in abscess and nodule count at Week 16 versus placebo in patients with mild to moderate HS. Ruxolitinib cream was well tolerated and consistent with its known safety profile. In June 2025, two Phase 3 studies (TRuE-HS1 and TRuE-HS2) evaluating ruxolitinib cream in mild to moderate HS were initiated, with topline results anticipated in the fourth quarter of 2026.

37

Table of Contents

Prurigo Nodularis. In January 2026, we received FDA feedback indicating that an additional clinical study would be required to support registration in mild to moderate prurigo nodularis (“PN”). Based on this feedback we have decided to pause further development of ruxolitinib cream in PN at this time.
Povorcitinib
Povorcitinib, an oral small molecule selective JAK1 inhibitor, is being evaluated for the treatment of HS, nonsegmental vitiligo, PN and asthma.
Hidradenitis Suppurativa. In March 2025, we shared positive results from two Phase 3 studies (STOP-HS1 and STOP-HS2) evaluating povorcitinib in patients with moderate to severe HS. Both studies met their primary endpoint of Hidradenitis Suppurativa Clinical Response (“HiSCR”) at Week 12 and at both tested doses (45mg and 75mg). In addition, at Week 12, patients treated with povorcitinib achieved deep levels of clinical response with a greater proportion achieving HiSCR75, reduction in flares, and a greater than 3-point decrease in the Skin Pain NRS score and Skin Pain NRS30. Furthermore, povorcitinib demonstrated rapid onset of response, including rapid skin pain reduction .
We submitted an MAA for povorcitinib to the EMA at the end of 2025 and we anticipate a potential approval in late 2026. The NDA submission for povorcitinib in HS was accepted by the FDA in the first quarter of 2026 and we anticipate a potential approval in the U.S. by the first quarter of 2027.
Nonsegmental Vitiligo. In March and October 2023, we presented results from the Phase 2b clinical study evaluating povorcitinib in patients with extensive nonsegmental vitiligo. The results demonstrated that treatment with oral povorcitinib was associated with substantial total body and facial repigmentation, as measured by Total Vitiligo Area Scoring Index. Based on these results, two Phase 3 studies (STOP-V1 and STOP-V2) evaluating povorcitinib (30mg) in participants with extensive nonsegmental vitiligo were initiated in late 2023. In April 2026, we announced positive results from the Phase 3 program. In both STOP-V1 and STOP-V2, povorcitinib achieved the primary endpoint of > 75% reduction in Facial Vitiligo Area Scoring Index from baseline at Week 52. Across both studies, statistically significant and clinically meaningful differences were also observed in key secondary endpoints, including a > 50% reduction in Total Vitiligo Area Scoring Index at Week 52. The overall safety and tolerability profile of povorcitinib through 52 weeks was consistent with prior studies, with no new safety signals observed. We expect to share additional data from STOP-V1 and STOP-V2 in the second half of 2026. Positive results from these studies will support regulatory applications for povorcitinib in vitiligo which are planned for the first quarter of 2027.
Prurigo Nodularis. In October 2023, we announced that the Phase 2, randomized, double-blind, placebo-controlled, dose ranging study evaluating the efficacy and safety of povorcitinib in participants with PN had met its primary endpoint. In October 2024, following the positive Phase 2 results, two Phase 3 studies (STOP-PN1 and STOP-PN2) evaluating povorcitinib in patients with moderate to severe PN were initiated . Data from the Phase 3 studies are anticipated in the fourth quarter of 2026.
Asthma. In July 2023, we initiated a Phase 2 study evaluating povorcitinib in patients with moderate to severe uncontrolled asthma. Proof-of-concept data from this study is anticipated in the second half of 2026 .
INCB00928 (zilurgisertib)
In April 2026, we entered into an agreement granting a third party worldwide commercialization rights for zilurgisertib.
Collaborative Partnered Programs
As described below under “License Agreements and Business Relationships,” we are eligible for milestone payments and royalties on certain products that we license to third parties. These include OLUMIANT (baricitinib), which is licensed to our collaborative partner Eli Lilly and Company (“Lilly”), and JAKAVI (ruxolitinib) and TABRECTA (capmatinib), which are licensed to Novartis.

38

Table of Contents

Baricitinib
We have a second JAK1 and JAK2 inhibitor, baricitinib, which is subject to our collaboration agreement with Lilly, in which Lilly received exclusive worldwide development and commercialization rights to the compound for inflammatory and autoimmune diseases.
Rheumatoid Arthritis. Rheumatoid arthritis is an autoimmune disease characterized by aberrant or abnormal immune mechanisms that lead to joint inflammation and swelling and, in some patients, the progressive destruction of joints. In February 2017, the European Commission approved baricitinib as OLUMIANT for the treatment of moderate-to-severe rheumatoid arthritis in adult patients who have responded inadequately to, or who are intolerant to, one or more disease-modifying antirheumatic drugs. In July 2017, the MHLW granted marketing approval for OLUMIANT for the treatment of rheumatoid arthritis (including the prevention of structural injury of joints) in patients with inadequate response to standard-of-care therapies. In June 2018, the FDA approved the 2mg dose of OLUMIANT for the treatment of adults with moderately-to-severely active rheumatoid arthritis who have had an inadequate response to one or more tumor necrosis factor inhibitor therapies.
Atopic Dermatitis. In October 2020, the European Commission approved baricitinib as OLUMIANT for the treatment of moderate-to-severe AD in adult patients who are candidates for systemic therapy. In December 2020, baricitinib was approved by the MHLW for the treatment of patients with moderate-to-severe AD.
Alopecia Areata . Alopecia areata is an autoimmune disorder in which the immune system attacks the hair follicles, causing hair loss in patches. In June 2022, the FDA approved 2mg and 4mg doses of OLUMIANT for the treatment of adults with severe alopecia areata, becoming the first and only systemic treatment in the indication. Also in June 2022, OLUMIANT was approved as a treatment for alopecia areata in Europe and Japan.
COVID-19. In May 2020, we amended our agreement with Lilly to enable Lilly to commercialize baricitinib for the treatment of COVID-19. The FDA’s Emergency Use Authorization provides for the use of baricitinib for the treatment of COVID-19 in hospitalized adults and pediatric patients two years of age or older requiring supplemental oxygen, non-invasive or invasive mechanical ventilation or extracorporeal membrane oxygenation (“ECMO”). In June 2022, the FDA approved baricitinib as OLUMIANT for the treatment of COVID-19 in hospitalized adults requiring supplemental oxygen, non-invasive or invasive mechanical ventilation or ECMO.
Type 1 Diabetes . In October 2025, we amended our agreement with Lilly to enable Lilly to commercialize baricitinib for the treatment of Type 1 diabetes mellitus.
Capmatinib
Capmatinib is a potent and highly selective mesenchymal-epithelial-transition factor gene (“MET”) inhibitor. Under our agreement, Novartis received worldwide exclusive development and commercialization rights to capmatinib and certain back-up compounds in all indications. Capmatinib is being evaluated in patients with hepatocellular carcinoma, non-small cell lung cancer (“NSCLC”) and other solid tumors, and may have potential utility as a combination agent.
In May 2020, the FDA approved capmatinib as TABRECTA for the treatment of adult patients with metastatic NSCLC whose tumors have a mutation that leads to MET exon 14 (“METex14”) skipping as detected by an FDA-approved test. TABRECTA is the first and only treatment approved to specifically target NSCLC with this driver mutation and is approved for first-line and previously treated patients regardless of prior treatment type. In June 2020, the MHLW approved TABRECTA for METex14 mutation-positive advanced and/or recurrent unresectable NSCLC. In June 2022, the European Commission approved capmatinib as TABRECTA as a monotherapy treatment of adults with advanced NSCLC harboring alterations leading to METex14 skipping who require systemic therapy following prior treatment with immunotherapy and/or platinum-based chemotherapy.
Ruxolitinib
Graft-versus-host disease. In May 2022, the European Commission approved ruxolitinib as JAKAVI for the treatment of acute or chronic GVHD in patients aged 12 years and older who have an inadequate response to corticosteroids or other systemic therapies. In August 2023, Novartis announced that JAKAVI had been approved in Japan for use in GVHD after HSCT .

39

Table of Contents

License Agreements and Business Relationships
We establish business relationships, including collaborative arrangements with other companies and medical research institutions, to assist in the clinical development and/or commercialization of certain of our drugs and drug candidates and to provide support for our research programs. We also evaluate opportunities for acquiring products or rights to products and technologies that are complementary to our business from other companies and medical research institutions.
Below is a brief description of our significant business relationships and collaborations and related license agreements that expand our pipeline and provide us with certain rights to existing and potential new products and technologies. Additional information regarding our collaboration agreements, including their financial and accounting impact on our business and results of operations, can be found in Note 5 and Note 7 of Notes to the Consolidated Financial Statements.
Out-License Agreements
Novartis
In November 2009, we entered into a Collaboration and License Agreement with Novartis. Under the terms of the agreement, Novartis received exclusive development and commercialization rights outside of the United States to ruxolitinib and certain back up compounds for hematologic and oncology indications, including all hematological malignancies, solid tumors and myeloproliferative diseases. We retained exclusive development and commercialization rights to JAKAFI (ruxolitinib) in the United States and in certain other indications. Novartis also received worldwide exclusive development and commercialization rights to our MET inhibitor compound capmatinib and certain back up compounds in all indications. We retained options to co-develop and to co-promote capmatinib in the United States. In April 2016, we amended this agreement to provide that Novartis has exclusive research, development and commercialization rights outside of the United States to ruxolitinib (excluding topical formulations) in the GVHD field.
Lilly
In December 2009, we entered into a License, Development and Commercialization Agreement with Lilly. Under the terms of the agreement, Lilly received exclusive worldwide development and commercialization rights to baricitinib and certain back up compounds for inflammatory and autoimmune diseases. In March 2016, we entered into an amendment to the agreement with Lilly that allows us to engage in the development and commercialization of ruxolitinib in the GVHD field. In May 2020, we amended our agreement with Lilly to enable Lilly to commercialize baricitinib for the treatment of COVID-19 and, in October 2025, we further amended the agreement to enable Lilly to commercialize baricitinib for the treatment of Type 1 diabetes mellitus. We received an upfront payment of $100.0 million in connection with the 2025 amendment, which amendment also restructured the royalty obligations on net sales of baricitinib, certain developmental and regulatory milestones associated with baricitinib, and the marketing and sales support obligations of Lilly. On baricitinib sales for any indication, we are now eligible to receive either a fixed royalty amount or tiered royalties based on a defined level of quarterly global net sales, with the tiered royalties up to a rate in the mid-teens. Additionally, for the treatment of COVID-19, we still receive a premium on royalties.
In-License Agreements
Syndax
In September 2021, we entered into a Collaboration and License Agreement with Syndax covering the worldwide development and commercialization of NIKTIMVO (axatilimab-csfr), Syndax’s anti-CSF-1R monoclonal antibody. Under the terms of this agreement, we received exclusive commercialization rights to axatilimab outside of the United States, and co-commercialization rights in the United States.
Other Collaborators
We have also entered into certain agreements with other collaboration partners for the rights to develop and commercialize other assets in our pipeline.

40

Table of Contents

Critical Accounting Policies and Significant Estimates
The preparation of financial statements requires us to make estimates, assumptions and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates. We base our estimates on historical experience and various other assumptions that we believe to be reasonable under the circumstances, the results of which form our basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from those estimates under different assumptions or conditions.
For a discussion of our critical accounting policies, refer to “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no significant changes to our critical accounting policies or estimates during the three months ended March 31, 2026.

Recent Accounting Pronouncements and Regulatory Updates
For a discussion of recently issued accounting standards, refer to Note 2 in the Notes to the Condensed Consolidated Financial Statements.

Results of Operations
We recorded net income of $303.3 million and basic net income per share of $1.52 and diluted net income per share of $1.47 for the three months ended March 31, 2026, as compared to net income of $158.2 million and basic net income per share of $0.82 and diluted net income per share of $0.80 in the corresponding period in 2025.
Revenues

Three Months Ended
March 31,
2026 2025
(in millions)
JAKAFI net sales $ 757.8  $ 709.4 
OPZELURA net sales 143.0  118.7 
ICLUSIG net sales 35.5  29.5 
PEMAZYRE net sales 22.5  18.4 
MINJUVI/MONJUVI net sales 49.2  29.6 
NIKTIMVO net sales 55.1  13.6 
ZYNYZ net sales 41.4  3.1 
Total net sales 1,104.5  922.3 
JAKAVI product royalty revenues 105.6  92.1 
OLUMIANT product royalty revenues 36.4  30.8 
TABRECTA product royalty revenues 6.0  6.4 
Other product royalty revenues 3.2  1.3 
Total product royalty revenues 151.2  130.6 
Milestone and contract revenues 17.0  — 
Total revenues $ 1,272.7  $ 1,052.9 

The increase in JAKAFI for the three months ended March 31, 2026 as compared to the corresponding period in 2025 was primarily driven by a 6% increase in paid demand and growth across all indications. JAKAFI inventory levels were within normal range at the end of the first quarter of 2026.

41

Table of Contents

The increase in OPZELURA net sales for the three months ended March 31, 2026 as compared to the corresponding period in 2025 was primarily due to increased patient demand in the U.S. in both atopic dermatitis and vitiligo. Additionally, $36.7 million of net sales during the first quarter of 2026 were from outside of the U.S. as compared with $23.5 million during the first quarter of 2025, with the increase driven by continued uptake in Canada and Italy. OPZELURA inventory levels were within normal range at the end of the first quarter of 2026.
The increase in other hematology and oncology net sales for the three months ended March 31, 2026 as compared to the corresponding period in 2025 was primarily driven by increased demand of NIKTIMVO, MONJUVI/MINJUVI and ZYNYZ.
The increase in total royalty revenues for the three months ended March 31, 2026 as compared to the corresponding period in 2025 was primarily driven by growth in JAKAVI royalty revenue.
Our net sales may fluctuate from quarter to quarter due to our customers’ purchasing patterns over the course of the year, including as a result of increased inventory building by customers in advance of expected or announced price increases. Net sales are recorded net of estimated product returns, pricing discounts including rebates offered pursuant to mandatory federal and state government programs and chargebacks, prompt pay discounts and distribution fees and co-pay assistance. Our revenue recognition policies require estimates of the aforementioned sales allowances each period.
The following table provides a summary of activity with respect to our sales allowances and accruals (in thousands):

Three Months Ended March 31, 2026 Discounts and
Distribution
Fees Commercial & Government
Rebates and
Chargebacks Co-Pay
Assistance
and Other
Discounts Product
Returns Total
Balance at January 1, 2026 $ 38,780  $ 562,167  $ 14,189  $ 30,955  $ 646,091 
Allowances for current period sales 61,737  557,600  65,726  6,369  691,432 
Allowances for prior period sales (38) (57,938) (38) —  (58,014)
Credits/payments for current period sales (55,077) (301,473) (54,900) —  (411,450)
Credits/payments for prior period sales (6,846) (119,788) (6,846) (4,485) (137,965)
Balance at March 31, 2026 $ 38,556  $ 640,568  $ 18,131  $ 32,839  $ 730,094 

U.S. government rebates and chargebacks are the most significant component of our sales allowances. Increases in certain U.S. government reimbursement rates are limited to a measure of inflation, and when the price of a drug increases faster than this measure of inflation it will result in a penalty adjustment factor that causes a larger sales allowance to those government related entities. We expect government rebates and chargebacks as a percentage of our gross product sales will continue to increase in connection with any future product price increases greater than the rate of inflation, and any such increase in these government rebates and chargebacks will have a negative impact on our reported net sales. We adjust our estimates for government rebates and chargebacks based on new information regarding actual rebates as it becomes available.
We brought a lawsuit against the U.S. Centers for Medicare and Medicaid Services (“CMS”) alleging that a regulation issued by CMS on the definition of “line extension” for purposes of the Medicaid rebate program is too broad and has the unintended consequence of treating OPZELURA as a “line extension” of JAKAFI under this program. We believe that such a reading would violate CMS’s statutory authority and be arbitrary and capricious given that OPZELURA, among other differentiators, is indicated to treat entirely different medical conditions and entirely different patient populations than JAKAFI. As of March 31, 2026, we have accrued approximately $245.9 million within accrued and other current liabilities on the condensed consolidated balance sheet, relating to the incremental rebates that would be owed were OPZELURA considered a line extension of JAKAFI. The impact on OPZELURA gross to net deductions for the quarter ending March 31, 2026 is approximately 8.4%. If OPZELURA is not treated as a line extension of JAKAFI, this would result in a reversal of our accrual and a lower future gross to net deduction for OPZELURA.

42

Table of Contents

Claims by third-party payors for rebates and chargebacks are frequently submitted after the period in which the related sales occurred, which may result in adjustments to prior period accrual balances in the period in which the new information becomes available. Our company-sponsored patient savings program in which we provide financial assistance to enable commercially-insured patients to afford their insurance premium and co-pays may fluctuate as the commercial insurance landscape evolves and may impact net sales, particularly for drugs like OPZELURA. We also adjust our allowance for product returns based on new information regarding actual returns as it becomes available.
We expect our sales allowances to fluctuate from quarter to quarter as a result of the volume of purchases eligible for government mandated discounts and rebates as well as changes in discount percentages which are impacted by potential future price increases, rate of inflation, and other factors.
Product royalty revenues on commercial sales of JAKAVI and TABRECTA by Novartis are based on net sales of licensed products in licensed territories as provided by Novartis. Product royalty revenues on commercial sales of OLUMIANT by Lilly are based on net sales of licensed products in licensed territories as provided by Lilly.
Our milestone and contract revenues for the three months ended March 31, 2026 were primarily derived from developmental milestones received from our third party collaborators.
Cost of Sales

Three Months Ended
March 31,
2026 2025
(in millions)
Product costs $ 41.0  $ 27.4 
Salary and benefits related 9.2  5.2 
Stock compensation 0.9  0.9 
Royalty expense 32.1  33.7 
Profit share 14.4  — 
Amortization of definite-lived intangible assets 6.9  6.0 
Total cost of sales $ 104.5  $ 73.2 

Cost of sales includes all product related costs, reserves for obsolescence, employee personnel costs, including stock compensation, for those employees dedicated to the production of our commercial products, royalties and profit sharing under our collaborative agreements and amortization of our licensed intellectual property rights for ICLUSIG and capitalized milestone payments . The increase in cost of sales for the three months ended March 31, 2026 as compared to the corresponding period in 2025 was driven by primarily driven by growth in net sales, NIKTIMVO profit share and increased manufacturing related costs.
Operating Expenses
Research and development expenses

Three Months Ended
March 31,
2026 2025
(in millions)
Salary and benefits related $ 154.3  $ 132.5 
Stock compensation 39.2  36.7 
Clinical research and outside services 293.8  229.4 
Occupancy and all other costs 28.6  38.7 
Total research and development expenses $ 515.9  $ 437.3 

43

Table of Contents

We account for research and development costs by natural expense line and not costs by project. The increase in salary and benefits related expense for the three months ended March 31, 2026 as compared to the corresponding period in 2025 was due primarily to increased headcount to sustain our development pipeline. Stock compensation expense may fluctuate from period to period based on the number of awards granted, stock price volatility and expected award lives, as well as expected award forfeiture rates which are used to value equity-based compensation.
The increase in clinical research and outside services expense for the three months ended March 31, 2026 as compared to the corresponding period in 2025, was primarily due to continued investment in our late-stage development assets. Research and development expenses include upfront and milestone expenses related to our collaborative agreements of $12.6 million and $15.5 million, respectively, for the three months ended March 31, 2026 and 2025. Research and development expenses for the three months ended March 31, 2026 and 2025 were net of $4.4 million and $2.6 million, respectively, of costs reimbursed by our collaborative partners.
In addition to one-time expenses resulting from upfront fees in connection with the entry into any new or amended collaboration agreements and payment of milestones under those agreements, research and development expenses may fluctuate from period to period depending upon the stage of certain projects and the level of preclinical and clinical trial related activities. Many factors can affect the cost and timing of our clinical trials, including requests by regulatory agencies for more information, inconclusive results requiring additional clinical trials, slow patient enrollment, adverse side effects among patients, insufficient supplies for our clinical trials, timing of drug supply, including API, and real or perceived lack of effectiveness or safety of our investigational drugs in our clinical trials. In addition, the development of all of our products will be subject to extensive governmental regulation. These factors make it difficult for us to predict the timing and costs of the further development and approval of our products.
Selling, general and administrative expenses

Three Months Ended
March 31,
2026 2025
(in millions)
Salary and benefits related $ 108.7  $ 97.8 
Stock compensation 24.0  23.4 
Other contract services and outside costs 195.4  204.5 
Total selling, general and administrative expenses $ 328.1  $ 325.7 

The increase in salary and benefits related expense for the three months ended March 31, 2026 as compared to the corresponding period in 2025 was due primarily to increased headcount. Stock compensation expense may fluctuate from period to period based on the number of awards granted, stock price volatility and expected award lives, as well as expected award forfeiture rates which are used to value equity-based compensation.

44

Table of Contents

Asset impairment and related disposal costs
As described further in Note 8 of Notes to the Condensed Consolidated Financial Statements, during December 2025, the downtown Wilmington, Delaware properties that we acquired in May 2024 met the criteria to be classified as assets held for sale. As a result of this classification, we recorded an asset impairment charge of $76.3 million on our consolidated statement of operations for the year ended December 31, 2025 relating to the downtown Wilmington properties in order to reflect the properties at the lower of their carrying amount or estimated fair value less cost to sell as of December 31, 2025. The estimated fair value less cost to sell of the properties was recorded within the Prepaid expenses and other current assets line item on our consolidated balance sheet as of December 31, 2025. During the three months ended March 31, 2026, we sold these downtown properties, and recognized an additional $23.2 million of expenses relating to disposal costs, which are included in Asset impairment and related disposal costs in the condensed consolidated statements of operations.
(Gain) loss on change in fair value of acquisition-related contingent consideration
Acquisition-related contingent consideration, which consists of our future royalty obligations to ARIAD/Takeda, was recorded on the acquisition date, June 1, 2016, at the estimated fair value of the obligation, in accordance with the acquisition method of accounting. The change in fair value of the acquisition-related contingent consideration for the three months ended March 31, 2026 and March 31, 2025 was a gain of $0.2 million and loss of $11.6 million, respectively, which is recorded in (gain) loss on change in fair value of acquisition-related contingent consideration on the condensed consolidated statements of operations. The change in fair value of the contingent consideration during the three months ended March 31, 2026 and 2025 was due primarily to updated projections of future net sales and related royalties of Iclusig, including the impacts from fluctuations in foreign currency exchange rates, and the passage of time.
Non-operating Income and Expenses
Interest income
Interest income for the three months ended March 31, 2026 and 2025 was $33.7 million and $22.9 million, respectively. The increase in Interest income for the three months ended March 31, 2026 is primarily due to higher cash and cash equivalent balances in the first quarter of 2026 as compared to the corresponding period in 2025.
Gain (loss) on equity investments
Gains and losses on equity investments will fluctuate from period to period, based on sales of securities and the change in fair value of the securities we hold in our publicly held collaboration partners. The following table provides a summary of those gains (losses):

Three Months Ended
March 31,
2026 2025
(in millions)
Syndax $ 3.3  $ (1.3)
Prelude 3.3  — 

Total gain (loss) on equity investments $ 6.6  $ (1.3)

Provision for income taxes
The provision for income taxes for the three months ended March 31, 2026 and 2025 was $40.3 million and $76.0 million, respectively.

45

Table of Contents

Our effective tax rate for the three months ended March 31, 2026 is lower than the U.S. statutory rate primarily due to favorable changes in unrecognized tax benefits, tax benefits associated with the generation of tax credits and favorable foreign tax effects. This is partially offset by a net increase in valuation allowances against certain U.S. federal and state deferred tax assets. Our effective tax rate for the three months ended March 31, 2025 was higher than the U.S. statutory rate primarily due to an unfavorable change in our valuation allowances against certain U.S. federal and state deferred tax assets and unfavorable foreign tax effects. This was partially offset by tax benefits associated with the generation of tax credits and favorable effects of cross-border tax laws.

Liquidity and Capital Resources
At March 31, 2026, we had available cash, cash equivalents and marketable securities of $4.0 billion. Our cash and marketable securities balances are primarily held in a variety of interest-bearing instruments, including money market accounts and U.S. government debt securities. Available cash is invested in accordance with our investment policy’s primary objectives of liquidity, safety of principal and diversity of investments.
Net cash provided by operating activities for the three months ended March 31, 2026 and 2025 was $369.4 million and $266.1 million, respectively. The increase in cash provided by operating activities was due primarily to the increased net income for the 2026 period.
Our investing activities, other than purchases and maturities of marketable securities, have consisted predominantly of capital expenditures. Net cash used in investing activities was $88.2 million for the three months ended March 31, 2026, which primarily represented purchases of marketable securities of $142.7 million, offset in part by maturities of marketable securities of $69.7 million. Net cash provided by investing activities was $1.1 million for the three months ended March 31, 2025, which primarily represented by maturities of marketable securities of $45.5 million, offset in part by purchases of marketable securities of $41.2 million. In the future, net cash used by investing activities may fluctuate significantly from period to period due to the timing of strategic equity investments, acquisitions, and capital expenditures and maturities/sales and purchases of marketable securities.
Net cash provided by financing activities was $84.8 million for the three months ended March 31, 2026, primarily representing proceeds from issuance of common stock under our stock plans. Net cash used in financing activities was $12.7 million for the three months ended March 31, 2025, primarily representing cash paid to ARIAD/Takeda for contingent consideration and cash paid for tax withholdings related to restricted and performance share vesting.
In August 2021, we entered into a $500.0 million, senior unsecured revolving credit facility, which was subsequently amended in May 2023 and June 2024 (as amended, the “Credit Agreement”). The June 2024 amendment to the Credit Agreement extended the maturity date of the revolving credit facility from August 2024 to June 2027. We may increase the maximum revolving commitments or add one or more incremental term loan facilities, subject to obtaining commitments from any participating lenders and certain other conditions, in an amount not to exceed $250.0 million plus a contingent additional amount that is dependent on our pro forma consolidated leverage ratio. As of March 31, 2026, we had no outstanding borrowings and were in compliance with all covenants under this facility. The Credit Agreement is described further in Note 15 of Notes to the Condensed Consolidated Financial Statements.
The enactment of the One Big Beautiful Bill Act in July 2025 modified key provisions of the Tax Cuts and Jobs Act of 2017. The change related to the expensing of domestic research costs materially reduced our U.S. tax liabilities in 2025 and we expect a similar impact in 2026. We intend to continue to evaluate the impacts of these provisions for our tax return filing.
We believe that our cash flow from operations, together with our cash, cash equivalents and marketable securities and funds available under our revolving credit facility, will be adequate to satisfy our capital needs for the foreseeable future. Our cash requirements depend on numerous factors, including our expenditures in connection with our drug discovery and development programs and commercialization operations; expenditures in connection with litigation or other legal proceedings; costs for future facility requirements; and expenditures for future strategic equity investments or potential acquisitions. We have entered into and may in the future seek to license additional rights relating to technologies or drug development candidates in connection with our drug discovery and development programs. Under these licenses, we may be required to pay upfront fees, milestone payments, and royalties on sales of future products. These contingent future payments are discussed in detail in Note 7 of Notes to the Condensed Consolidated Financial Statements.

46

Table of Contents

To the extent we seek to augment our existing cash resources and cash flow from operations to satisfy our cash requirements for future acquisitions or other strategic purposes, we expect that additional funding can be obtained through equity or debt financings or from other sources. The sale of equity or convertible debt securities in the future may be dilutive to our stockholders, and may provide for rights, preferences or privileges senior to those of our holders of common stock. Debt financing arrangements may require us to pledge certain assets or enter into covenants that could restrict our operations or our ability to incur further indebtedness.

Item 3. Quantitative and Qualitative Disclosures About Market Risk
Our investments in marketable securities, which are composed primarily of U.S. government debt securities, are subject to default, changes in credit rating and changes in market value. These investments are also subject to interest rate risk and will decrease in value if market interest rates increase. As of March 31, 2026, marketable securities were $554.7 million. Due to the nature of these investments, if market interest rates were to increase immediately and uniformly by 10% from levels as of March 31, 2026, the decline in fair value would not be material.
To the extent that we continue to hold strategic equity investments in publicly traded companies, we expect that due to the volatility of the stock price of biotechnology companies, our (gain) loss on equity investments will fluctuate in future periods based on increases or decreases in the fair value of our strategic equity investments.

Item 4. Controls and Procedures
Evaluation of disclosure controls and procedures. We maintain “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”), that are designed to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating our disclosure controls and procedures, management recognized that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Our disclosure controls and procedures have been designed to meet reasonable assurance standards. Additionally, in designing disclosure controls and procedures, our management was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.
Based on their evaluation as of the end of the period covered by this Quarterly Report on Form 10-Q, our Chief Executive Officer and Principal Financial Officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.
Changes in internal control over financial reporting . There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) for the three months ended March 31, 2026, that materially affected or are reasonably likely to materially affect our internal control over financial reporting.

PART II: OTHER INFORMATION

Item 1. Legal Proceedings
The information called for by this item is incorporated herein by reference to the information set forth in Note 15 to our Condensed Consolidated Financial Statements included in this report.

47

Table of Contents

Item 1A. Risk Factors
RISKS RELATING TO COMMERCIALIZATION OF OUR PRODUCTS
We depend heavily on our lead product, JAKAFI (ruxolitinib), which is marketed as JAKAVI outside the United States. If we are unable to maintain revenues from JAKAFI/JAKAVI or those revenues decrease, our business may be materially harmed.
JAKAFI is the first product marketed by us to be approved for sale in the United States. While we also sell our and our licensors’ other approved products ICLUSIG, PEMAZYRE, MONJUVI/MINJUVI, OPZELURA, ZYNYZ and NIKTIMVO and our exclusive licensees sell OLUMIANT and TABRECTA, we anticipate that JAKAFI product sales will continue to contribute a significant percentage of our total revenues over the next several years. However, we expect that JAKAFI product sales will begin to decline upon the expiration of our patent exclusivity in 2028.
The continued commercial success of JAKAFI and our ability to maintain and continue to increase revenues from the sale of JAKAFI will depend on a number of factors, including:
• the number of patients diagnosed with intermediate or high-risk myelofibrosis, uncontrolled polycythemia vera or steroid-refractory graft-versus-host disease and the number of such patients that may be treated with JAKAFI;
• the acceptance of JAKAFI by patients and the healthcare community;
• whether physicians, patients and healthcare payors view JAKAFI as therapeutically effective and safe relative to cost and any alternative therapies, as well as whether patients will continue to use JAKAFI;
• the ability to obtain and maintain sufficient coverage or reimbursement by third-party payors and pricing;
• the ability of our third-party manufacturers to manufacture JAKAFI in sufficient quantities that meet all applicable quality standards;
• the ability of our company and our third-party providers to provide marketing and distribution support for JAKAFI;
• the label and promotional claims allowed by the U.S. Food and Drug Administration (FDA);
• the maintenance of regulatory approval for the approved indications in the United States;
• our ability to develop, obtain regulatory approval for and commercialize JAKAFI in the United States for additional indications or in combination with other therapeutic modalities; and
• the effects of a public health pandemic or epidemic such as the COVID-19 pandemic or of adverse geopolitical events, regulatory, legislative or administrative developments.
If we are not able to maintain revenues from JAKAFI in the United States, or our revenues from JAKAFI decrease, our business may be materially harmed and we may need to delay other drug discovery, development and commercialization initiatives or even significantly curtail operations, and our ability to license or acquire new products to diversify our revenue base could be limited.
In addition, revenues from our other products and our receipt of royalties under our collaboration agreements, including our agreements with Novartis Pharmaceutical International Ltd. for sales of JAKAVI outside the United States and TABRECTA globally and with Eli Lilly and Company for worldwide sales of OLUMIANT, will depend on factors similar to those listed above, with similar regulatory, pricing and reimbursement issues driven by applicable regulatory authorities and governmental and third-party payors affecting jurisdictions outside the United States.

48

Table of Contents