What changed in this filing

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Item 1. Financial Statements

2026-04-28 compared with 2025-10-28 · 203 added, 384 removed, 515 unchanged (53% of the section changed)

3 unchanged sentences

(in thousands, except number of shares and par value)

September 30,

2026 December 31,

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Cash and cash equivalents $ 3,461,114 $ 3,097,817

Marketable securities—available-for-sale (amortized cost $ 473,126 and $ 469,917 as of September 30, 2025 and December 31, 2024, respectively;

allowance for credit losses $ 0 as of September 30, 2025 and December 31, 2024)

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

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400,000,000 shares authorized;

196,130,993 and 193,434,305 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively

199,948,401 and 198,460,009 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively

Additional paid-in capital 5,083,234 4,928,049

Accumulated other comprehensive income (loss) 14,555 ( 13,121 )

Accumulated deficit ( 85,510 ) ( 1,072,881 )

Accumulated other comprehensive income 22,314 25,462

Retained earnings 517,099 213,769

Total stockholders’ equity 5,622,847 5,167,478

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Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Product revenues, net $ 1,149,856 $ 962,992 $ 3,131,544 $ 2,599,481

Net sales $ 1,104,484 $ 922,274

Product royalty revenues 151,192 130,624

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Costs, expenses and other:

Cost of product revenues (including definite-lived intangible amortization) 99,001 85,993 250,955 223,583

Contract dispute settlement — — ( 242,251 ) —

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

(Profit) and loss sharing under collaboration agreements — — — ( 1,025 )

Total costs, expenses and other 971,559 847,730

Income (loss) from operations 443,518 146,085 1,179,000 ( 240,147 )

Income from operations 301,117 205,168

Interest income 33,687 22,929

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Provision for income taxes 40,270 75,987

Net income (loss) $ 424,169 $ 106,456 $ 987,371 $ ( 168,597 )

Net income (loss) per share:

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 (loss) per share:

Shares used in computing net income per share:

Basic 199,343 193,712

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INCYTE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited, in thousands)

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Net income (loss) $ 424,169 $ 106,456 $ 987,371 $ ( 168,597 )

Other comprehensive income (loss):

Foreign currency translation gain (loss) 156 15,228 24,661 ( 2,185 )

Unrealized gain on marketable securities, net of tax 375 5,463 1,342 3,463

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 income (loss) 1,116 21,075 27,676 2,549

Comprehensive income (loss) $ 425,285 $ 127,531 $ 1,015,047 $ ( 166,048 )

Other comprehensive (loss) income ( 3,148 ) 6,883

Comprehensive income $ 300,182 $ 165,086

See accompanying notes.

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Paid-in Capital Accumulated Other

Comprehensive (Loss) Income Accumulated Deficit Total

Comprehensive Income (Loss) Retained Earnings Total

Stockholders’

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Stock compensation — 64,126 — — 64,126

Other comprehensive income — — 6,883 — 6,883

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

Issuance of 64,400 shares of Common Stock upon exercise of stock options and settlement of employee restricted stock units and performance shares, net of shares withheld for taxes, and 261,762 shares of Common Stock under the ESPP

1 13,972 — — 13,973

Issuance of 1,220 shares of Common Stock for services rendered

Stock compensation — 64,609 — — 64,609

Other comprehensive income — — 19,677 — 19,677

Net income — — — 404,999 404,999

Balances at June 30, 2025 $ 194 $ 4,666,949 $ 13,439 $ ( 509,679 ) $ 4,170,903

Issuance of 2,011,476 shares of Common Stock upon exercise of stock options and settlement of employee restricted stock units, net of shares withheld for taxes

2 ( 6,676 ) — — ( 6,674 )

Issuance of 962 shares of Common Stock for services rendered

Stock compensation — 61,598 — — 61,598

Other comprehensive income — — 1,116 — 1,116

Net income — — — 424,169 424,169

Balances at September 30, 2025 $ 196 $ 4,721,953 $ 14,555 $ ( 85,510 ) $ 4,651,194

INCYTE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (CONTINUED)

(unaudited, in thousands, except number of shares)

Stock Additional

Paid-in Capital Accumulated Other

Comprehensive (Loss) Income Retained Earnings (Accumulated Deficit) Total

Comprehensive (Loss) Income (Accumulated Deficit) Total

Stockholders’

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Stock compensation — 60,982 — — 60,982

Other comprehensive loss — — ( 19,278 ) — ( 19,278 )

Net income — — — 169,548 169,548

Balances at March 31, 2024 $ 224 $ 5,070,286 $ ( 6,172 ) $ 329,933 $ 5,394,271

Issuance of 71,769 shares of Common Stock upon exercise of stock options and settlement of employee restricted stock units and performance shares, net of shares withheld for taxes and 291,735 shares of Common Stock under the ESPP

— 13,792 — — 13,792

Issuance of 1,345 shares of Common Stock for services rendered

Stock compensation — 56,637 — — 56,637

Repurchases of Common Stock ( 33 ) ( 758,061 ) — ( 1,265,778 ) ( 2,023,872 )

Other comprehensive income — — 6,883 — 6,883

Net loss — — — ( 444,601 ) ( 444,601 )

Balances at June 30, 2024 $ 191 $ 4,382,734 $ ( 5,420 ) $ ( 1,380,446 ) $ 2,997,059

Issuance of 1,060,300 shares of Common Stock upon exercise of stock options and settlement of employee restricted stock units, net of shares withheld for taxes

1 ( 31,270 ) — — ( 31,269 )

Issuance of 1,242 shares of Common Stock for services rendered

Stock compensation — 77,922 — — 77,922

Repurchases of Common Stock — — — ( 103 ) ( 103 )

Other comprehensive income — — 21,075 — 21,075

Net income — — — 158,203 158,203

Balances at September 30, 2024 $ 192 $ 4,429,466 $ 15,655 $ ( 1,274,093 ) $ 3,171,220

Balances at March 31, 2025 $ 193 $ 4,588,286 $ ( 6,238 ) $ ( 914,678 ) $ 3,667,563

See accompanying notes.

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(unaudited, in thousands)

Nine Months Ended September 30,

Three Months Ended March 31,

Cash flows from operating activities:

Net income (loss) $ 987,371 $ ( 168,597 )

Adjustments to reconcile net income (loss) to net cash provided by (used in) 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

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Other, net 12,772 5,292

(Gain) on equity investments ( 3,064 ) ( 126,206 )

Loss on change in fair value of acquisition-related contingent consideration 22,129 23,847

(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:

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Accrued and other liabilities ( 84,725 ) 74,842

Net cash provided by (used in) operating activities 870,197 ( 45,881 )

Net cash provided by operating activities 369,351 266,067

Cash flows from investing activities:

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Cash flows from financing activities:

Repurchases of Common Stock — ( 2,004,790 )

Excise tax paid on repurchase of Common Stock ( 19,100 ) —

Proceeds from issuance of Common Stock under stock plans 97,925 3,239

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Payment of contingent consideration ( 4,963 ) ( 5,371 )

Net cash used in financing activities ( 36,700 ) ( 2,041,941 )

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 (decrease) in cash, cash equivalents, and restricted cash 767,398 ( 1,909,375 )

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

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Supplemental Schedule of Cash Flow Information

Income taxes paid $ 185,221 $ 302,860

Cash paid for contract dispute settlement $ 294,881 $ —

Income taxes paid, net of (refunds) $ ( 8,787 ) $ 844

Unpaid excise tax on repurchase of Common Stock $ — $ 19,185

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

March 31, 2026

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) and ZYNYZ® (retifanlimab-dlwr), as well as NIKTIMVO™ (axatilimab-csfr), which is co-commercialized.

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.

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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 September 30, 2025, the condensed consolidated statements of operations, comprehensive income (loss), and stockholders’ equity for the three and nine months ended September 30, 2025 and 2024, and the condensed consolidated statements of cash flows for the nine months ended September 30, 2025 and 2024, 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 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.

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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 December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No.

2023-09, “ Income Taxes (Topic 740):

Improvements to Income Tax Disclosures .” This amended guidance applies to all entities and broadly aims to enhance the transparency and decision usefulness of income tax disclosures.

For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2024, and are applicable for disclosures in our Annual Report on Form 10-K beginning with the year ending December 31, 2025.

We are currently evaluating the impact that ASU No.

2023-09 will have on our income tax disclosures and the method of adoption.

2023-09 does not affect our results of operations, financial condition or cash flows.

In November 2024, the FASB issued ASU No.

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.

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The amendments are effective for annual reporting periods beginning after December 15, 2025 and interim reporting periods within those annual periods.

If electing the practical expedient, entities should apply the amendments in this update prospectively.

We are currently evaluating the impact ASU No.

2025-05 will have on our consolidated financial statements and related disclosures.

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.

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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 it refines the scope of derivative accounting and clarifies rules for share-based noncash consideration in revenue contracts.

” 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.

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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.

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.

Revenues are recognized under guidance within ASC 606, Revenue from Contracts with Customers .

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Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

JAKAFI revenues, net $ 791,071 $ 741,181 $ 2,264,271 $ 2,018,993

OPZELURA revenues, net 187,968 139,272 471,172 346,691

ICLUSIG revenues, net 37,582 29,745 99,855 86,950

PEMAZYRE revenues, net 22,741 20,661 63,373 58,606

MINJUVI/MONJUVI revenues, net 41,990 31,439 102,672 86,429

NIKTIMVO revenues, net 45,830 — 95,597 —

ZYNYZ revenues, net 22,674 694 34,604 1,812

Total product revenues, net 1,149,856 962,992 3,131,544 2,599,481

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

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Total revenues $ 1,272,676 $ 1,052,898

For further information on the MINJUVI/MONJUVI revenues, refer to Note 6, and for further information on our revenue-generating contracts, refer to Note 8.

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

Fair Value of Financial Instruments

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Cost Unrealized Gains Unrealized Losses

September 30, 2025

March 31, 2026

Debt securities (government) $ 555,202 $ 697 $ ( 1,188 ) $ 554,711

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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 September 30, 2025 (in thousands):

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

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Debt security assets were assessed for risk of expected credit losses.

As of September 30, 2025 and December 31, 2024, 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.

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.

Fair Value Measurements

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government debt securities that are classified as available-for-sale.

At September 30, 2025 and December 31, 2024, our Level 2 U.S.

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 and nine months ended September 30, 2025.

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):

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(Level 3) Balance as of

September 30, 2025

March 31, 2026

Cash and cash equivalents $ 3,461,114 $ — $ — $ 3,461,114

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(Level 3) Balance as of

September 30, 2025

March 31, 2026

Acquisition-related contingent consideration $ — $ — $ 110,000 $ 110,000

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Contingent consideration earned during the period but not yet paid ( 10,832 )

Payments made during the period ( 20,332 )

Change in fair value of contingent consideration ( 168 )

Balance at September 30, $ 184,000

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 revenues 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 %.

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 September 30, 2025 and December 31, 2024 included a discount rate of 10 % and updated projections of future net revenues of ICLUSIG in the European Union and other countries for the approved third line treatment.

The change in fair value of the contingent consideration during the three and nine months ended September 30, 2025 was due primarily to updated projections of future net revenues of ICLUSIG, including the impacts from fluctuations in foreign currency exchange rates, and the passage of time.

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 September 30, 2025 and December 31, 2024, contingent consideration earned but not yet paid was $ 10.8 million and $ 10.0 million, respectively, and was included in accrued and other current liabilities.

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.

Concentration of Credit Risk and Current Expected Credit Losses

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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, 20 % and 19 % of the accounts receivable balance as of September 30, 2025 and December 31, 2024, respectively.

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.

In November 2011, we began commercialization and distribution of JAKAFI and in October 2021, we began commercialization and distribution of OPZELURA.

Our product revenues are concentrated in a number of customers for these products.

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

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

Percentage of Total Net

Product Revenues for the

Three Months Ended Percentage of Total Net

Product Revenues for the

Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

Sales for the

Three Months Ended

Customer A 13 % 14 %

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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, 59 % and 54 % of the accounts receivable balance as of September 30, 2025 and December 31, 2024, respectively.

The concentration of credit risk relating to our other product revenues or accounts receivable is not significant.

We assessed our collaborative and customer receivable assets as of September 30, 2025 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 September 30, 2025 and December 31, 2024, we had no allowance for doubtful accounts.

On February 5, 2024, pursuant to a purchase agreement with MorphoSys AG and MorphoSys US Inc., a wholly-owned subsidiary of MorphoSys AG (together with MorphoSys AG, “MorphoSys”), we acquired exclusive global rights to tafasitamab, a humanized Fc-modified CD19-targeting immunotherapy marketed in the United States as MONJUVI (tafasitamab-cxix) and outside of the United States as MINJUVI (tafasitamab).

We previously had the rights to tafasitamab outside of the United States under a January 2020 collaboration and license agreement with MorphoSys, which has now been terminated;

therefore, this new agreement gave us all of the remaining global rights to tafasitamab.

Under the terms of the purchase agreement, we made a payment of $ 25.0 million to MorphoSys and gained global development and commercialization rights for tafasitamab along with MONJUVI inventory.

We recognize revenue and costs for all U.S.

commercialization and clinical development of tafasitamab and MorphoSys is no longer eligible to receive future milestone, profit split or royalty payments under the now-terminated collaboration and license agreement.

We evaluated the set of activities and assets acquired under the purchase agreement and concluded that it did not meet the definition of a business because the acquired set did not include a substantive process.

Therefore, the transaction was accounted for as an asset acquisition under U.S.

GAAP and the total purchase price, inclusive of direct transaction costs, was allocated to the acquired MONJUVI inventory, in accordance with applicable accounting guidance.

Under the purchase agreement, we also became the successor to MorphoSys under its collaboration and license agreement with Xencor, Inc.

(“Xencor”), pursuant to which Xencor granted MorphoSys an exclusive, worldwide license, including the right to sublicense under certain conditions, for tafasitamab.

During the first quarter of 2025, we paid Xencor a development milestone of $ 12.5 million for the U.S.

Food and Drug Administration’s (“FDA”) acceptance of the Biologics License Application filing for the use of tafasitamab for follicular lymphoma.

In June 2025, we recorded a $ 25.0 million regulatory milestone owed to Xencor for the FDA approval of MONJUVI for the treatment of follicular lymphoma.

This milestone payment was capitalized as an intangible asset and included in other intangible assets, net on the condensed consolidated balance sheet as of September 30, 2025.

The intangible asset will be amortized through cost of product revenues over the estimated useful life of 8 years.

Xencor is entitled to receive up to an additional $ 149.0 million in future contingent development and regulatory milestones and up to $ 50.0 million in sales milestones.

Furthermore, Xencor is eligible to receive tiered royalties on global net sales of tafasitamab in the single-digit to sub-teen double-digit percentage range.

Our royalty obligations continue on a country-by-country basis until the later to occur of the expiration of the last valid claim in the licensed patent covering tafasitamab in such country, or 11 years after the first sale thereof following marketing authorization in such country.

The term of the Xencor collaboration agreement will continue until all of our royalty payment obligations have expired, unless terminated earlier.

The Xencor collaboration agreement may be terminated by either party upon written notice to the other party immediately in the event of the other party’s insolvency or upon 120 days’ written notice for the other party’s uncured material breach (or upon 30 days’ written notice in the case of a breach of a payment obligation).

Moreover, we may terminate the Xencor collaboration agreement without cause upon 90 days’ advance written notice to Xencor.

In the event that (i) we terminate this agreement for convenience or (ii) Xencor terminates due to our material breach, our challenge of Xencor’s licensed patents or our insolvency, worldwide rights to develop, manufacture and commercialize licensed products, including tafasitamab, revert back to Xencor.

Escient Pharmaceuticals, Inc.

( “ Escient ” )

On May 30, 2024 we acquired all of the outstanding shares of common stock of Escient, a clinical-stage drug development company advancing novel small molecule therapeutics for systemic immune and neuro-immune disorders, for $ 782.5 million cash consideration, which included Escient's net cash remaining at the close of the transaction, subject to adjustments set forth in the merger agreement with Escient.

Escient’s lead molecule, INCB000262 (formerly EP262), is a first-in-class oral Mas-related G protein-coupled receptor X2 (MRGPRX2) antagonist that has the potential to treat a broad range of inflammatory disorders.

We accounted for the Escient transaction as an asset acquisition under U.S.

GAAP because INCB000262 represents substantially all of the fair value of the gross assets acquired.

In addition to the $ 782.5 million closing cash consideration per the terms of the merger agreement, we incurred $ 2.5 million of direct transaction costs that were included in the total consideration to be allocated to the acquired net assets.

Of the $ 785.0 million total consideration, we recognized related compensation expense of $ 31.5 million associated with the accelerated vesting for certain Escient stock awards in connection with the acquisition on our condensed consolidated statements of operations for the quarter ended June 30, 2024.

The following table summarizes allocation of the remaining U.S.

GAAP consideration, net of compensation expense, across the net assets acquired (in thousands):

Cash and cash equivalents $ 48,302

Marketable securities 3,988

Prepaid expenses and other current assets 1,663

In-process research and development assets 679,388

Deferred tax asset 44,811

Other non-current assets 4,110

Accounts payable and accrued expenses ( 26,611 )

Other current liabilities ( 1,022 )

Non-current liabilities ( 1,118 )

GAAP Consideration (net of compensation expense) $ 753,511

In-process research and development (“IPR&D”) assets are related to acquired clinical-stage product candidates:

lead candidate, INCB000262, and secondary candidate, INCB000547 (formerly EP547).

The fair value of IPR&D assets was based on the present value of future discounted cash flows, which was based on significant estimates.

These estimates included the amount of future product revenues, costs required to conduct clinical trials, future milestones and royalties payable under acquired license agreements, costs to receive regulatory approval and potentially commercialize product candidates, as well as estimates for probability of success and the discount rate.

The concluded allocated fair values for INCB000262 and INCB000547 was $ 644.8 million and $ 34.6 million, respectively.

As both acquired IPR&D assets do not have an alternative future use at the acquisition date, we recognized the full amount of $ 679.4 million as research and development expenses on our condensed consolidated statements of operations during nine months ended September 30, 2024.

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.

Our inventory balance consists of the following (in thousands):

September 30,

2026 December 31,

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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 September 30, 2025, $ 83.4 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 September 30, 2025, $ 366.5 million of inventory was classified as non-current on the condensed consolidated balance sheet as we did not expect this inventory to be consumed for commercial use within the next twelve months.

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.

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Costs incurred prior to regulatory approval are recorded as research and development expense in our condensed consolidated statements of operations.

At September 30, 2025, inventory with approximately $ 45.4 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 7 to 43 months and, as a result, cost of product revenues will reflect a lower average per unit cost of materials.

License Agreements

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.

Collaborative and Other Relationships

In November 2009, we entered into a Collaboration and License Agreement with Novartis.

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Novartis is also responsible for all costs relating to the development and commercialization of capmatinib.

We were 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.

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 September 30, 2025, 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.

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.

As of March 31, 2025, we had approximately $ 537.1 million of accrued royalties relating to the dispute with Novartis included in accrued and other current liabilities on our condensed consolidated balance sheet.

Under the Settlement Agreement, we paid Novartis $ 280.0 million as the settlement of disputed royalties on net sales of JAKAFI in the United States through December 31, 2024, and 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.

The reduced royalty paid for the quarter ended March 31, 2025, was approximately $ 14.9 million.

The difference of $ 242.2 million between the total accrued royalties and the total amount paid by us to Novartis as disclosed above was recorded in Contract dispute settlement on our condensed consolidated statement of operations for nine months ended September 30, 2025.

During the three and nine months ended September 30, 2025, such royalties on net sales within the United States totaled $ 19.3 million and $ 67.8 million, respectively, and were reflected in cost of product revenues on the condensed consolidated statements of operations.

During the three and nine months ended September 30, 2024, such royalties on net sales within the United States totaled $ 36.3 million and $ 93.9 million, respectively, and were reflected in cost of product revenues on the condensed consolidated statements of operations.

At September 30, 2025 and December 31, 2024, approximately $ 19.4 million and $ 507.4 million, respectively, of accrued royalties were included in accrued and other current liabilities on the condensed consolidated balance sheets.

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 and nine months ended September 30, 2025, was $ 125.6 million and $ 327.5 million, respectively.

Product royalty revenue related to Novartis’ net sales of JAKAVI outside of the United States for the three and nine months ended September 30, 2024, was $ 115.7 million and $ 304.7 million, respectively.

Product royalty revenue related to Novartis’ net sales of TABRECTA worldwide for the three and nine months ended September 30, 2025, was $ 6.5 million and $ 19.6 million, respectively.

Product royalty revenue related to Novartis’ net sales of TABRECTA worldwide for the three and nine months ended September 30, 2024, was $ 5.9 million and $ 16.5 million, respectively.

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

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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.

Since the inception of the agreement through September 30, 2025, we have recognized and received, in aggregate, $ 149.0 million for the achievement of development milestones, $ 335.0 million for the achievement of regulatory milestones and $ 50.0 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, for which we will receive an upfront payment of $ 100.0 million.

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.

Product royalty revenue related to Lilly net sales of OLUMIANT outside of the United States for the three and nine months ended September 30, 2025 was $ 37.1 million and $ 101.4 million, respectively.

Product royalty revenue related to Lilly net sales of OLUMIANT outside of the United States for the three and nine months ended September 30, 2024 was $ 34.8 million and $ 97.1 million, respectively.

In January 2015, we entered into a License, Development and Commercialization Agreement with Agenus Inc.

and its wholly-owned subsidiary, 4-Antibody AG (now known as Agenus Switzerland Inc.), which we collectively refer to as Agenus.

Under this agreement, which was amended in February 2017, the parties agreed to collaborate on the discovery of novel immuno-therapeutics using Agenus’ antibody discovery platforms.

In February 2025, we provided Agenus with notice that we are terminating the parties’ agreement based upon a strategic review.

Under the terms of the agreement, the termination will become effective in February 2026, unless Agenus agrees to accelerate the notice period.

During 2024, we sold our shares of Agenus Inc.

common stock, and as of December 31, 2024, we had no remaining investment in Agenus Inc.

common stock.

For the three and nine months ended September 30, 2024, we recorded an unrealized loss of $ 6.8 million and $ 6.7 million, respectively, based on the change in fair value of Agenus Inc.’s common stock during the respective periods.

In December 2016, we entered into a Collaboration and License Agreement with Merus N.V.

Under this agreement, the parties have agreed to collaborate with respect to the research, discovery and development of bispecific antibodies utilizing Merus’ technology platform.

The collaboration encompasses up to ten independent programs.

During 2024, we sold our investment of Merus’ common shares, and as of December 31, 2024, we had no remaining investment in Merus’ common shares.

For the three and nine months ended September 30, 2024, we recorded realized and unrealized losses of $ 4.1 million and realized and unrealized gains of $ 106.1 million, respectively, based on the sale of shares and change in fair value of remaining Merus’ common shares during the respective periods.

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.

In October 2017, we entered into a Global Collaboration and License Agreement with MacroGenics, Inc.

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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 September 30, 2025, we have paid MacroGenics developmental and regulatory milestones totaling $ 215.0 million.

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.

As described in Note 6, on February 5, 2024, we entered into a purchase agreement with MorphoSys that became effective as of that date, as a result of which we now hold exclusive global rights for tafasitamab, a humanized Fc-modified CD19-targeting immunotherapy marketed in the United States as MONJUVI (tafasitamab-cxix) and outside of the United States as MINJUVI (tafasitamab).

Prior to the acquisition, pursuant to a now-terminated collaboration and license agreement, we and MorphoSys agreed to co-develop tafasitamab and to share development costs associated with global and U.S.-specific clinical trials, with Incyte responsible for 55 % of such costs and MorphoSys responsible for 45 % of such costs.

Each company was responsible for funding any independent development activities, and we were responsible for funding development activities specific to territories outside of the United States.

During 2024, we sold our investment of MorphoSys AG’s ordinary shares, and as of December 31, 2024, we had no remaining investment in MorphoSys AG’s ordinary shares.

For the nine months ended September 30, 2024, we recorded a realized gain of $ 30.7 million, based on the sale of shares and change in fair value of MorphoSys AG's ordinary shares during the respective periods.

As described in Note 6, subsequent to the asset acquisition, we recognize revenue and costs for all commercialization and clinical development of tafasitamab in the United States.

Research and development expenses for the period from January 1, 2024 to the asset acquisition on February 5, 2024 includes $ 10.7 million related to our 55 % share of the co-development costs for tafasitamab.

In September 2021, we entered into a Collaboration and License Agreement with Syndax Pharmaceuticals, Inc.

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Each company is responsible for funding any independent development activities.

In August 2024, we made a $ 12.5 million regulatory milestone payment to Syndax for the FDA approval of NIKTIMVO for the treatment of GVHD.

This milestone payment was capitalized as an intangible asset and included in other intangible assets, net on the condensed consolidated balance sheet as of September 30, 2025, and is being amortized through cost of product revenues over the estimated useful life of 10 years.

Inclusive of an upfront, non-refundable payment, since the inception of the agreement through September 30, 2025, 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.

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.

As of September 30, 2025, 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 September 30, 2025 and December 31, 2024 was $ 21.9 million and $ 18.8 million, respectively.

For the three and nine months ended September 30, 2025, we recorded an unrealized gain of $ 8.6 million and $ 3.1 million, respectively, based on the change in fair value of Syndax’s common stock during the respective periods.

For the three and nine months ended September 30, 2024, we recorded an unrealized loss of $ 1.9 million and $ 3.4 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 and nine months ended September 30, 2025, includes $ 6.3 million and $ 16.3 million, respectively, related to our 55 % share of the co-development costs for axatilimab.

Research and development expenses for the three and nine months ended September 30, 2024, includes $ 5.8 million and $ 17.6 million, respectively, related to our 55 % share of the co-development costs for axatilimab.

At September 30, 2025 and December 31, 2024, $ 1.7 million and $ 2.2 million, respectively, was included in accrued and other liabilities on the condensed consolidated balance sheet for amounts due to Syndax under the agreement.

China Medical Systems Holdings Limited

In March 2024, we entered into a Collaboration and License Agreement with China Medical System Skinhealth, a wholly-owned dermatology medical aesthetic company and subsidiary of China Medical System Holdings Limited (“CMSHL”), for the development and commercialization of povorcitinib, a selective oral JAK1 inhibitor, in certain indications in certain Asian territories.

In March 2024, we recognized an upfront payment under this agreement of $ 25.0 million upon our transfer of the functional intellectual property related to povorcitinib to CMSHL which was recorded in milestone and contract revenues on the condensed consolidated statement of operations during the first quarter of 2024.

We are eligible to receive additional potential development and commercial milestones, as well as royalties on net sales of the licensed product in CMSHL’s territory.

CMSHL received an exclusive license to develop and commercialize and a non-exclusive license to manufacture povorcitinib in autoimmune and inflammatory dermatologic diseases, including non-segmental vitiligo, hidradenitis suppurativa, prurigo nodularis, asthma and chronic spontaneous urticaria, for patients in mainland China, Hong Kong, Macau, Taiwan and certain countries in Southeast Asia.

Sun Pharmaceuticals, Inc.

In July 2025, we entered into a settlement and license agreement with Sun Pharmaceuticals, Inc.

("Sun"), resolving patent infringement litigation related to Leqselvi (deuruxolitinib).

Under this agreement, we have granted Sun a limited, non-exclusive license in the U.S.

with respect to oral deuruxolitinib for certain agreed-upon non-hematology-oncology indications, including alopecia areata.

In exchange for the limited license, Sun has paid us an upfront payment upon our transfer of functional intellectual property, which is included in milestone and contract revenues on the condensed consolidated statement of operations for the three and nine months ended September 30, 2025, and has agreed to pay to us ongoing royalty payments.

The amount associated with the settlement component is de minimis.

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.

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

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Property and equipment, net consists of the following (in thousands):

September 30,

2026 December 31,

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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.

During the year ended December 31, 2024, we capitalized $ 4.9 million of land and $ 19.5 million of building and parking garage.

As of September 30, 2025 we have $ 48.1 million of construction in progress relating to the downtown Wilmington properties.

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.

Accrued and Other Current Liabilities

Accrued and other current liabilities consisted of the following (in thousands):

September 30,

2026 December 31,

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Total accrued and other current liabilities $ 1,092,308 $ 1,031,501

For further information on the change in accrued royalties refer to Note 8.

Stockholders' Equity

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 )

Stock Compensation

2010 Stock Incentive Plan.

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Awards under the 2010 Stock Plan include stock options, restricted stock units (“RSUs”) and performance shares (“PSUs”).

In June 2025, our stockholders approved an increase in the number of shares of common stock reserved for issuance under the 2010 Stock Plan from 66,453,475 to 74,953,475 .

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.

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A total of 2,000,000 shares of common stock are reserved for issuance pursuant to the 2024 Inducement Plan.

Share Repurchase and Modified “ Dutch Auction ” Tender Offer.

On May 13, 2024 we announced that our Board of Directors approved a share repurchase authorization of $ 2.0 billion.

Subsequently, we commenced a modified “Dutch Auction” tender offer to repurchase shares of our common stock for an aggregate purchase price of up to $ 1.672 billion (the “tender offer”).

We offered to purchase up to $ 1.672 billion in value of our common stock at a price not greater than $ 60.00 per share nor less than $ 52.00 per share, net to the seller in cash, less any applicable withholding taxes and without interest, upon the terms and subject to the conditions set forth in the tender offer documents that were distributed to stockholders.

A modified “Dutch Auction” tender offer allows stockholders to indicate how much stock they wish to tender and at what price within the range described above.

Based on the number of shares tendered and the prices specified by the tendering stockholders, we determined the lowest price per share that enabled us to purchase $ 1.672 billion of common stock at such price.

On June 13, 2024 we completed the tender offer and repurchased 27,866,666 shares at a price of $ 60.00 per share for an aggregate price of approximately $ 1.672 billion, excluding fees and related expenses, pursuant to the tender offer.

In addition, on May 12, 2024, we entered into a separate stock purchase agreement with Julian C.

Baker (a member of our Board of Directors), Felix J.

Baker, and entities affiliated with Julian C.

Baker, including funds advised by Baker Bros.

Advisors LP (collectively, the “Baker Entities”), to repurchase up to $ 328.0 million of our common stock.

This would enable the Baker Entities to maintain their ownership level as of May 9, 2024 of approximately 16.4 % of Incyte’s outstanding common stock.

The Baker Entities purchase was to be at the same price per share as was determined and paid in the tender offer.

On June 26, 2024, we repurchased 5,459,183 shares at a price of $ 60.00 per share for an aggregate price of approximately $ 328.0 million pursuant to the terms of the stock purchase agreement with the Baker Entities.

We account for share repurchases as retirements, whereby it reduces common stock and additional paid-in capital by the amount of the original issuance, with any excess purchase price recorded as a reduction to retained earnings (accumulated deficit).

Any transaction costs, including the excise tax, directly associated with the share repurchases are included as part of the purchase price.

Under this method, the issued and outstanding shares of common stock are reduced by the number of shares of common stock repurchased, and no treasury stock is recognized on the condensed consolidated financial statements.

A total of 33,325,849 common shares were repurchased during June 2024 at a price of $ 60.00 per share for an aggregate purchase price of approximately $ 2.0 billion.

We incurred $ 24.4 million in fees and expenses associated with the share repurchase, which included $ 19.1 million for excise taxes on share repurchases in accordance with the Inflation Reduction Act of 2022.

We paid the excise tax in April 2025.

These costs are recognized within (accumulated deficit) retained earnings on the condensed consolidated balance sheet as of September 30, 2025 as costs to repurchase our common stock.

The purchased shares were cancelled and ceased to be outstanding.

Other Comprehensive Income (Loss)

The following tables summarize the activity related to each component of other comprehensive income (loss) during the nine months ended September 30, 2025 and 2024:

Balances at January 1, 2025 $ 26,457 $ 346 $ ( 39,924 ) $ ( 13,121 )

Other comprehensive income before reclassifications 24,661 1,342 — 26,003

Net amount reclassified from accumulated other comprehensive loss — — 1,673 1,673

Net other comprehensive income 24,661 1,342 1,673 27,676

Balances at September 30, 2025 $ 51,118 $ 1,688 $ ( 38,251 ) $ 14,555

Balances at January 1, 2024 $ 44,181 $ ( 149 ) $ ( 30,926 ) $ 13,106

Other comprehensive (loss) income before reclassifications ( 2,185 ) 3,463 — 1,278

Net amount reclassified from accumulated other comprehensive loss — — 1,271 1,271

Net other comprehensive (loss) income ( 2,185 ) 3,463 1,271 2,549

Balances at September 30, 2024 $ 41,996 $ 3,314 $ ( 29,655 ) $ 15,655

Stock Compensation

We recorded $ 61.6 million and $ 187.2 million of stock compensation expense on our condensed consolidated statements of operations for the three and nine months ended September 30, 2025, respectively.

We recorded $ 77.9 million and $ 194.3 million of stock compensation expense on our condensed consolidated statements of operations for the three and nine months ended September 30, 2024, respectively.

Stock compensation expense included within our condensed consolidated statements of operations included research and development expense of $ 39.7 million, $ 114.1 million, $ 45.8 million and $ 117.1 million for the three and nine months ended September 30, 2025 and 2024, respectively.

Stock compensation expense included within our condensed consolidated statements of operations also included selling, general and administrative expense of $ 21.0 million, $ 70.5 million, $ 31.5 million and $ 75.6 million for the three and nine months ended September 30, 2025 and 2024, respectively.

Stock compensation expense included within our condensed consolidated statements of operations also included cost of product revenues of $ 0.9 million, $ 2.6 million, $ 0.6 million and $ 1.6 million respectively, for the three and nine months ended September 30, 2025 and 2024.

Additionally, as described in Note 6, as part of the Escient acquisition, during the nine months ended September 30, 2024, we recognized related compensation expense of $ 31.5 million associated with the accelerated vesting for certain Escient stock awards in connection with the acquisition on our condensed consolidated statements of operations.

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.

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 Nine Months Ended For the Three Months Ended For the Nine Months Ended

September 30, September 30,

For the Three Months Ended For the Three Months Ended

March 31, March 31,

2026 2025 2026 2025

18 unchanged sentences

Options cancelled ( 154,099 ) $ 86.65

Balance at September 30, 2025 12,851,140 $ 82.83

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.

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RSUs granted 281,129 $ 104.78

PSUs granted 873,728 $ 56.72

Additional PSUs earned 32,148 $ 70.45

RSUs released ( 235,796 ) $ 71.08

2 unchanged sentences

PSUs cancelled ( 16,599 ) $ 84.44

Balance at September 30, 2025 9,875,257 $ 66.59

Balance at March 31, 2026 9,117,132 $ 67.85

RSUs and PSUs are granted to our employees at the share price on the date of grant.

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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 and nine months ended September 30, 2025 we recorded $ 2.6 million and $ 12.6 million, respectively, of stock compensation expense for PSUs on our condensed consolidated statements of operations.

For the three and nine months ended September 30, 2024 we recorded $ 12.3 million and $ 19.2 million, respectively, of stock compensation expense for PSUs on our condensed consolidated statements of operations.

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.

Previously, each RSU and PSU grant reduced the available share pool by 2 shares.

In June 2025, our stockholders approved an amendment to the 2010 Stock Plan to remove the fungible ratio, and all awards granted under the 2010 Stock Plan after June 10, 2025, the date of our latest annual meeting, will reduce the share reserve on a one -for-one basis.

If awards granted under the 2010 Stock Plan on or prior to June 10, 2025 expire, become unexercisable or are forfeited or repurchased after that date, the shares that were subject to those awards will become available for future grant only on a one -for-one basis, even if the original award was a full value award that reduced the share reserve on a two -for-one basis.

The 2024 Inducement Plan was amended in June 2025 to remove the provision that stated that any shares issued in connection with awards other than options and stock appreciation rights will be counted against the authorized share limitation as 2.0 shares for every one share so issued and, as a result, all awards granted under the 2024 Inducement Plan will reduce the share reserve thereunder on a one -for-one basis.

Each RSU and PSU grant reduces the available share pool by one share.

Shares Available

Balance at December 31, 2025 9,059,040

Additional authorization - 2010 Stock Plan 8,500,000

Additional authorization - 2024 Inducement Plan 1,000,000

Options, RSUs and PSUs granted and issuance of shares for services rendered ( 608,460 )

Options, RSUs and PSUs cancelled 339,000

Fungible ratio change adjustments 282,731

Balance at September 30, 2025 8,873,452

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 September 30, 2025, was $ 25.6 million, which is expected to be recognized over the weighted average period of approximately 1.4 years.

Total compensation cost of RSUs granted but not yet vested, as of September 30, 2025, was $ 299.9 million, which is expected to be recognized over the weighted average period of approximately 1.8 years.

Total compensation cost of PSUs granted but not yet vested, as of September 30, 2025, was $ 43.9 million, which is expected to be recognized over the weighted average period of 2.4 years, should the underlying performance conditions be deemed probable of achievement.

For the three and nine months ended September 30, 2025 and 2024, we recorded the following provisions for income taxes and effective tax rates as compared to our income before provision for income taxes (in thousands):

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.

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

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Income before provision for income taxes $ 343,600 $ 234,190

1 unchanged sentence

Effective tax rate 11.7 % 32.4 %

Our effective tax rate for the three months ended September 30, 2025 is lower than the U.S.

statutory rate primarily due to a net decrease in our valuation allowance against certain U.S.

federal deferred tax assets, resulting from the recently enacted U.S.

tax law changes described below.

Our effective tax rate for the nine months ended September 30, 2025 was higher than the U.S.

statutory rate primarily due to an increase in our valuation allowance against certain U.S.

federal and state deferred tax assets.

This was partially offset by tax rate benefits associated with research and development and orphan drug tax credit generations, the foreign derived intangible income deduction and a decrease in a prior year valuation allowance against certain U.S.

federal deferred tax assets, resulting from the recently enacted U.S.

tax law changes.

Our effective tax rate for the three months ended September 30, 2024 was higher than the U.S.

statutory rate primarily due to foreign losses with no associated tax benefit (i.e., full valuation allowance) and an increase in our valuation allowance against certain U.S.

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.

This was partially offset by tax rate benefits associated with research and development and orphan drug tax credit generations and the foreign derived intangible income deduction.

Our effective tax rate for the nine months ended September 30, 2024 was higher than the U.S.

statutory rate primarily due to non-deductible charges of $ 710.9 million associated with the Escient acquisition.

The effective tax rate for the three months ended September 30, 2025 was favorable as compared to the three months ended September 30, 2024 primarily due to the decrease in the valuation allowance against certain U.S.

Federal deferred tax assets, resulting from recently enacted U.S.

tax law changes described below.

The effective tax rate for the nine months ended September 30, 2025 was favorable as compared to the nine months ended September 30, 2024 primarily due to the non-deductible charge associated with the Escient acquisition in the prior year period.

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.

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In the U.S., the statute of limitations remains open beginning with tax year 2021.

We are currently under U.S.

federal audit for 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.

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We will continue to monitor additional enactments and guidance as they occur and assess any future impacts in the period they become effective.

On July 4, 2025, the U.S.

enacted legislation formally titled “An Act to Provide for Reconciliation Pursuant to Title II of H.

14” and commonly referred to as the One Big Beautiful Bill Act (“OBBBA”).

The OBBBA modified key provisions of the Tax Cuts and Jobs Act of 2017, including but not limited to, the expensing of domestic research costs, the deduction for Foreign-Derived Intangible Income, and the Global Intangible Low-Taxed Income regime.

The OBBBA introduces multiple elections and features various effective dates, with some provisions effective in 2025 and others in subsequent years.

Under ASC 740, entities are required to recognize the impact of new income tax legislation in the period of enactment.

We continue to evaluate the OBBBA’s various provisions and elections, including their expected favorable impact on our effective tax rate and the realizability of deferred tax assets, and have reflected an estimate of these effects in our financial statements for the period ending September 30, 2025.

Net Income (Loss) Per Share

Net income (loss) per share was calculated as follows for the periods indicated below:

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.

Net Income Per Share

Net income per share was calculated as follows for the periods indicated below:

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Basic net income (loss) $ 424,169 $ 106,456 $ 987,371 $ ( 168,597 )

Basic net income $ 303,330 $ 158,203

Weighted average common shares outstanding 199,343 193,712

Basic net income (loss) per share $ 2.17 $ 0.55 $ 5.08 $ ( 0.80 )

Diluted net income (loss) $ 424,169 $ 106,456 $ 987,371 $ ( 168,597 )

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 (loss) per share 201,429 195,838 199,405 211,763

Diluted net income (loss) per share $ 2.11 $ 0.54 $ 4.95 $ ( 0.80 )

All stock options and stock awards were excluded from the diluted share calculation for the nine months ended September 30, 2024 because their effect would have been anti-dilutive, as we were in a net loss position.

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

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

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Outstanding stock options and awards 2,504,249 11,075,503

4 unchanged sentences

Employees may contribute a portion of their compensation, which is then matched by us, subject to certain limitations.

Defined contribution expense for the three and nine months ended September 30, 2025 was $ 5.8 million and $ 17.3 million, respectively.

Defined contribution expense for the three and nine months ended September 30, 2024 was $ 5.2 million and $ 15.8 million, respectively.

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

3 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Service cost $ 4,087 $ 3,642

15 unchanged sentences

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 September 30, 2025 and December 31, 2024, we had no outstanding borrowings and were in compliance with all covenants under this facility.

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

8 unchanged sentences

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 September 30, 2025, we have accrued approximately $ 188.9 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 September 30, 2025 is approximately 6.8 %.

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.

1 unchanged sentence

“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.

Additionally, as described in Note 8, we entered into a settlement and license agreement with Sun, resolving patent infringement litigation related to Leqselvi (deuruxolitinib).

Segment Information

5 unchanged sentences

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 revenues 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.

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.

3 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Product revenues, net $ 1,149,856 $ 962,992 $ 3,131,544 $ 2,599,481

Net sales $ 1,104,484 $ 922,274

Product royalty revenues 151,192 130,624

2 unchanged sentences

Costs, expenses and other:

Cost of product revenues (including definite-lived intangible amortization) 99,001 85,993 250,955 223,583

Contract dispute settlement — — ( 242,251 ) —

Cost of sales (including definite-lived intangible amortization) 104,523 73,188

Research and development - internal 1

6 unchanged sentences

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

(Profit) and loss sharing under collaboration agreements — — — ( 1,025 )

Other segment items 4

( 2,213 ) 46,965

Net income (loss) $ 424,169 $ 106,456 $ 987,371 $ ( 168,597 )

Net income $ 303,330 $ 158,203

Research and development - internal is comprised of internally generated costs such as salaries, travel, regulatory costs, lab costs, contracting, etc.

5 unchanged sentences

Total revenues by geographic region consisted of the following (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

United States $ 1,171,468 $ 981,557

4 unchanged sentences

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

September 30,

2026 December 31,

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements