Incyte announced Tuesday it is realigning its research and development priorities to focus on dermatology and inflammatory assets obtained from the $750 million acquisition of Escient Pharmaceuticals.
Incyte on Tuesday released its second-quarter 2024 results, revealing that it has scrapped five investigational therapies as it conducts a strategic realignment of its R&D priorities.
The Delaware-based pharma will no longer be putting resources into the development of two oral small molecule PD-1 blockers, an anti-TIM-3 monoclonal antibody and a bispecific antibody targeting the LAG-3 and PD-1 antigens. All four of these assets were in early-stage studies before their discontinuation. Incyte will also drop a Phase II LAG-3 antibody, according to the announcement.
The decision to discontinue the development of these five candidates were “based on available data, the evolving treatment landscape and the evolution of our internal pipeline,” Incyte R&D head Pablo Cagnoni said during an investor call.
Steep competition, especially in the LAG-3 space, also factored into these pipeline adjustments. Cagnoni alluded to several LAG-3 therapies that have been proven effective when used with PD-1 blockers, as well as “at least one bispecific LAG-3 that is well ahead of us already in randomized trials.”
Bristol Myers Squibb leads the LAG-3 space with its Opdualag (nivolumab and relatlimab-rmbw), which in 2022 became the first anti-LAG-3 therapy approved by the FDA. Opdualag is indicated for unresectable or metastatic melanoma in patients 12 years of age and older.
Immutep is also developing a LAG-3 therapy, eftilagimod alfa, which it is testing in combination with Merck’s blockbuster PD-1 inhibitor Keytruda (pembrolizumab) for various cancers, such as non-small cell lung cancer and metastatic breast cancer. Earlier this month, the biotech released Phase IIb data for the candidate in metastatic head and neck squamous cell carcinoma, touting a 35.5% objective response rate and a 58.1% disease control rate, respectively.
By discontinuing its five candidates, Incyte will be able to divert its R&D efforts and investments into more “high potential impact programs” such as the JAK inhibitor povorcitinib, according to the company. Incyte is developing the drug for several dermatology and immune-mediated conditions, such as vitiligo, asthma and chronic spontaneous urticaria. The company obtained povorcitinib from its $750 million acquisition of Escient Pharmaceuticals in April 2024.
Incyte will also work on two other assets from Escient, while continuing the development of other internal candidates for various indications in cancer, graft-versus-host disease and myeloproliferative neoplasms (MPN).
William Blair analyst Matt Phipps said in an investor note that Incyte has several developmental programs with the “potential to exceed the market opportunity of Jakafi long-term, notably povorcitinib and potentially the next-generation MPN programs.” The biotech’s recently acquired Escient assets targeting mast cell diseases could also eventually outperform Jakafi (ruxolitinib).
Incyte made $1.04 billion in the second quarter of 2024 and nearly $2 billion in the first six months of this year. Its best-performing asset remains Jakafi, which brought in almost $706 million in Q2. Opzelura (ruxolitinib), a cream formulation containing Jakafi’s active ingredient, secured net product revenue of nearly $122 million.
