On July 28, Incyte rose 5.24% in regular trading, trading at $125.455/share, with turnover of $124 million. The rally was driven by a strong Q2 earnings report released pre-market that significantly exceeded market expectations.

Incyte reported Q2 adjusted EPS of $3.09, beating the consensus estimate of $2.12 by 45.75%, representing a 96.82% year-over-year increase. Q2 net sales reached $1.663 billion, surpassing the $1.460 billion estimate, reflecting 40% year-over-year growth. The outperformance was primarily driven by a settlement reached with CMS regarding Medicaid rebate issues for its eczema cream Opzelura, which is expected to add $300-$310 million to full-year net sales. The settlement also resulted in a $246 million one-time non-cash gain. The company raised its full-year revenue guidance to reflect the impact of this agreement.

Beyond the earnings beat, Incyte has also seen positive pipeline momentum in recent months, including EU CHMP positive opinion for Opzelura in atopic dermatitis, the $1.25 billion acquisition of Vega Therapeutics to expand into bleeding disorders, and positive clinical data for INCA033989 and latarcibart.

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