Making
a
difference
incyte 2012 AnnuAl RepoRt
to stockholdeRs
“you must be an advocate for
yourself or your loved one.
you have to learn as much
as you can and be willing
to investigate and take an
active role in managing
your disease.”
Finding Support page 7
Bonnie, a patient advocate who leads
a support group for patients with
myeloproliferative neoplasms, and
her husband, Joe
Treating Myelofibrosis
Building a Community
Changing the Focus
Investing in the Future
4
5
6
8
To Our Stockholders:
A decade ago, a core team of experienced scientists joined
me with the vision to build a leading drug discovery,
development and commercial company capable of
making a compelling difference in patients’ lives. With
this strong scientific team, we transformed the concept
of JAk inhibition into a drug which, in just six years, became
our first FdA-approved product in late 2011 – leading to
incyte’s evolution into a commercial company in 2012.
The Year of Jakafi®
the FdA approval of Jakafi® (ruxolitinib) was a significant
milestone for patients with intermediate or high-risk myelofibrosis
(MF), their families and their physicians, as well as for incyte.
As the first JAk inhibitor approved for any indication, Jakafi
attests to our leadership position in this important class of drugs.
in 2012 — our first year on the market with Jakafi —we built a
strong foundation for sustained long-term growth.
2013 Key BuSIneSS GoalS
> Solidify the role of Jakafi® (ruxolitinib) as the
standard-of-care treatment for intermediate or
high-risk myelofibrosis by improving persistency
and driving new patient starts
> Complete the Phase III clinical trials of
ruxolitinib in polycythemia vera and
prepare to file for regulatory approval in 2014
> Report Phase II trial results of ruxolitinib in
pancreatic cancer and determine next steps
in development
> Continue to invest in the ongoing development
of baricitinib for rheumatoid arthritis and
potentially other inflammatory conditions,
in partnership with Lilly
> Complete proof-of-concept studies of JAK1
inhibitor INCB39110 in myelofibrosis,
rheumatoid arthritis and psoriasis
to determine appropriate future
development programs
> Evaluate the potential of IDO inhibitor
INCB24360 in metastatic melanoma
and ovarian cancer
> Expand the depth and breadth of the R&D
pipeline through focused discovery efforts in the
areas of oncology and inflammatory diseases
1
Investing in the Future
8
physicians have gained more experience with the medicine, and
we are seeing an increasing number prescribe Jakafi for more than
one patient. At the same time, important data have been published
in medical journals and presented at major scientific meetings
highlighting the significant benefits received by patients taking
Jakafi. Additionally, our collaboration partner novartis has
commercial rights to Jakafi outside the united states and received
product approval from the european commission, which will
lead to tiered royalties for incyte ranging from the upper teens
to the mid-twenties.
By partnering with and sup-
porting the Mpn coalition,
we initiated the first Myelo-
fibrosis Awareness day in
september 2012, which in-
cluded webinars, symposia,
continuing medical education
programs, and publications
for patients, health care
professionals and caregivers.
Additionally, the Mpn
coalition launched a
Paul A. Friedman, M.D.
President and Chief Executive Officer
website, www.myelofibrosisawareness.org, to provide a centralized
source of information about MF.
We’re dedicating the following pages to patients with MF and the
people making a difference in their lives. i hope you read their
stories to understand more about this debilitating disease, to learn
how Jakafi is offering patients hope, and to see how the entire
incyte team is dedicated to helping build a community of support
and knowledge so that, together, we can make a difference.
2
A Robust Pipeline
As proud as we are of what we have accomplished with Jakafi,
incyte is about more than one product. thanks to our extensive
R&d efforts, we have a robust pipeline that includes additional
potential indications for Jakafi, such as polycythemia vera and
pancreatic cancer.
our second JAk1 and JAk2 inhibitor, baricitinib, is licensed
to eli lilly and company and is currently in phase iii trials in
patients with rheumatoid arthritis. in exchange for our funding
30 percent of the associated development costs in rheumatoid
arthritis, we would receive tiered royalties ranging up to the high
twenties on potential future worldwide sales once the product is
approved. Additionally, like Jakafi in oncology, the prospects
for baricitinib in other inflammatory diseases are substantial,
including psoriasis and diabetic nephropathy.
our knowledge of, and commitment to, the JAk inhibitor space
extends well beyond Jakafi and baricitinib. We look forward
to advancing our earlier stage selective inhibitors of the JAk1
enzyme, such as incB39110, with which we are currently
conducting proof-of-concept studies in a range of conditions.
these efforts will continue to solidify our industry-leading position
in the discovery, development and commercialization of the JAk
inhibitor class of drugs.
in addition to our JAk programs, we have other compounds in
early stage clinical development, including our inhibitor of the
c-Met kinase, licensed to novartis, for solid tumors, and our
proprietary highly novel indoleamine dioxygenase (ido) inhibitor
for melanoma and ovarian cancer.
in closing, i want to thank our employees for their relentless
focus on achieving our vision. the incyte team has demonstrated it
truly has the drive to discover and the experience to deliver.
We are making a difference in the lives of patients with MF, and
we expect our continued efforts in R&d to help deliver benefits to
an even greater spectrum of patients with other complex conditions
and continue to build significant, sustainable shareholder value.
sincerely,
paul A. Friedman, M.d.
President and Chief Executive Officer
April 2013
DISCoVeRy/
PReClInCal
PHaSe I
PHaSe II
PHaSe III
aPPRoVeD
Product Pipeline
DISEASE — COMPOUND — TARGET
OncOlOgy
Myelofibrosis — Jakafi® ruxolitinib[a,b] — JAK1 and JAK2
Polycythemia vera — ruxolitinib[a,b] — JAK1 and JAK2
Essential thrombocythemia — ruxolitinib[a,b] — JAK1 and JAK2
Pancreatic Cancer — ruxolitinib[a,b] — JAK1 and JAK2
Solid/hematologic tumors[c] — ruxolitinib[a,b] — JAK1 and JAK2
Solid tumors — INCB28060[d] — c-MET
Metastatic melanoma — INCB24360 — IDO
Ovarian cancer — INCB24360 — IDO
Myelofibrosis — INCB39110 — JAK1
Other Programs
InflammatIOn
Rheumatoid arthritis — baricitinib[e,f] — JAK1 and JAK2
Psoriasis — baricitinib[e,f] — JAK1 and JAK2
Diabetic Nephropathy — baricitinib[e,f] — JAK1 and JAK2
Rheumatoid Arthritis — INCB39110 — JAK1
Psoriasis — INCB39110 — JAK1
Other programs
a. Formerly INCB18424 b. Incyte: U.S. rights; Novartis: ex U.S. rights c. Investigator-sponsored trials d. Novartis worldwide rights e. Formerly LY3009104 (INCB28050) f. Lilly: worldwide rights
3
Dan, a patient with myelofibrosis who
has participated in a clinical trial for
Jakafi® (ruxolitinib) since March 2010
“Jakafi brought me hope. since
i’ve been taking Jakafi, my life is
more like it used to be. i am now
able to see a future in front of me
that i couldn’t before.”
4
Treating Myelofibrosis
Myelofibrosis (MF) is a
life-threatening blood cancer
characterized by bone marrow
failure, enlarged spleen
(splenomegaly) and debilitat-
ing symptoms. MF is typically
diagnosed in people
between 50 to 80 years of
age, but can occur at any age.
It is a progressive disease
that worsens over time. The
average survival of people
with primary MF is about five
years, but life expectancy
varies by individual.
By developing the first
FDA-approved treatment for
intermediate or high-risk
myelofibrosis, Incyte expects
to make a meaningful
difference in the lives of pa-
tients affected by the disease
and anticipates improving
their outcome over time.
For more information
about myelofibrosis, visit
www.jakafi.com/consumer.
“Myelofibrosis is a disease that impacts
everyone differently. since this type of
cancer is very rare, it is important for us to
collaborate with other groups and provide
educational resources that could help demystify
this disease and help patients establish a
meaningful dialogue with their health care team.”
Building a Community
Incyte supports the multiple advoca-
cy organizations that form the MPN
Coalition, including CancerCare,
Cancer Support Community, Leuke-
mia & Lymphoma Society, MPN
Advocacy & Education International,
MPN Education Foundation, MPN
Research Foundation, and National
Organization for Rare Diseases.
These organizations came together to
provide a forum for discussion of and
action on needs and challenges faced
by those living with and affected by
myeloproliferative neoplasms
(MPNs), including myelofibrosis.
In September 2012, Incyte and
the MPN Coalition launched the first
MPN Awareness Day, an annual event
to focus on the need for increased
awareness and education for physi-
cians, patients and caregivers about
myelofibrosis and other MPNs.
For more information, visit www.
myelofibrosisawareness.org.
Dan
MF Patient
Kim Thiboldeaux, President and CEO of the
Cancer Support Community, a founding
member of the MPN Coalition
5
“the long-term data for Jakafi continue to
demonstrate tangible benefits for patients
with intermediate or high-risk myelofibrosis,
including a potential improvement in overall
survival. And the medicine looks promising to
treat other oncologic conditions in the future.”
Changing the Focus
Historically, when managing
patients with myelofibrosis,
physicians had limited options.
The development and introduc-
tion of Jakafi® (ruxolitinib), the
first medicine to be approved
by the FDA for the treatment
of intermediate or high-risk
myelofibrosis, offered a
new focus and hope for
physicians and their patients.
The novel use of patient-reported
outcomes (PROs) in the Phase III
COMFORT-I trial allowed Incyte
to include improvement of symp-
toms in the FDA-approved label,
in addtion to the reduction in
spleen volume seen in Jakafi-treat-
ed patients, and this information
has brought a greater apprecia-
tion of the symptomatic burden
experienced by these patients.
Srdan Verstovsek, MD, PhD, Professor,
Department of Leukemia, Division of Cancer
Medicine,The University of Texas MD
Anderson Cancer Center in Houston
6
Joe, a patient with myelofibrosis who has
participated in a clinical trial for Jakafi®
(ruxolitinib) since September 2008
“When i was diagnosed with myelofibrosis, there
were only two resources available for patients
—the Mpn Research Foundation and the Mpn
education Foundation. it’s good to see more
patient groups committed to helping Mpn
patients and their families.”
Finding Support
Incyte learned about unmet
needs from respected patient
groups. Our collaboration re-
sulted in expanded programs
to help both patients and
their loved ones. Patients
can learn ways to cope
with myelofibrosis, improve
communication with their
health care team, find reliable
information, and help manage
financial difficulties.
For more information, visit
the following websites:
www.myelofibrosisawareness.
org/find-support
www.incyte.com/jakafi/
incytecares
7
Bob Niblack, patient advocate whose
wife, Joyce, co-founded the MPN
Education Foundation in 2004
“do your homework. put yourself
into competent medical care.
take control of your disease.
And, most of all, don’t lose hope.”
8
Investing in the Future
Patient-led organizations,
such as the MPN Research
Foundation and the MPN
Education Foundation,
were established, in part, to
encourage and support re-
search into new treatments
for myeloproliferative
neoplasms (MPNs).
The MPN Research
Foundation has awarded
more than $8 million for
MPN research since
1999, and the MPN
Education Foundation
has established an
online support group of
approximately 3,000
members, who are a re-
source for MPN researchers.
Both organizations are also
committed to providing
education and support
to patients.
For more information
about the MPN Research
Foundation, visit www.
mpnresearchfoundation.org
For more information
about the MPN Education
Foundation and Joyce
Niblack’s story, visit
www.mpdinfo.org/
joycesstory.php
BoaRD oF DIReCToRS
Richard u. De Schutter
Chairman of the Board
Formerly Chairman and
Chief Executive Officer
DuPont Pharmaceuticals
Company
Paul a. Friedman, M.D.
President and
Chief Executive Officer
Incyte Corporation
Barry M. ariko
Formerly President, Chief
Executive Officer and Chairman
Mirapoint Inc.
Julian C. Baker
Managing Partner
Baker Brothers Investments
Paul a. Brooke
Founder and Managing Director
venBio LLC
Wendy l. Dixon, Ph.D.
Formerly Chief Marketing
Officer and President,
Global Marketing
Bristol-Myers Squibb Company
FoRWaRD-looKInG STaTeMenTS
Roy a. Whitfield
Formerly Chairman of the Board
and Chief Executive Officer
Incyte Corporation
exeCuTIVe ManaGeMenT
Paul a. Friedman, M.D.
President and
Chief Executive Officer
James M. Daly
Executive Vice President
and Chief Commercial Officer
David C. Hastings
Executive Vice President and
Chief Financial Officer
Reid M. Huber, Ph.D.
Senior Vice President,
Discovery Biology
Richard S. levy, M.D.
Executive Vice President and
Chief Drug Development and
Medical Officer
eric H. Siegel
Executive Vice President and
General Counsel
TDD Foreign Shareowners:
201/680-6610
www.computershare.com/investor
Paula J. Swain
Executive Vice President,
Human Resources
Wenqing yao, Ph.D.
Senior Vice President,
Discovery Chemistry
SToCKHolDeR InFoRMaTIon
Transfer agent and Registrar
Computershare
PO Box 43078
Providence, RI 02940-3078
or
250 Royall Street
Canton, MA 02021
Phone: 877/272-1536
TDD for Hearing Impaired:
800/231-5469
Foreign Shareowners:
201/680-6578
annual Meeting
The Annual Meeting of
Stockholders will be held
May 30, 2013, at 10:00 a.m.,
Eastern Daylight Time, at the
Hotel du Pont, 11th and
Market Streets, Wilmington,
Delaware 19801
outside Counsel
Pillsbury Winthrop Shaw
Pittman LLP
Independent Registered
Public accounting Firm
Ernst & Young LLP
Market Information
Incyte Common Stock
trades on The Nasdaq
Global Select Market
under the symbol INCY.
Investor Relations
You can obtain recent press
releases and other publicly
available information on
Incyte by visiting our website
at www.incyte.com.
Contact
Pamela Murphy
Vice President, Investor
Relations and Corporate
Communications
Email: pmurphy@incyte.com
Corporate Headquarters
Incyte Corporation
Experimental Station
Route 141 & Henry Clay Road
Building E336
Wilmington, Delaware 19880
855/446-2983
Except for the historical information set forth herein, the matters set forth in this annual report, including statements regarding our plans and expectations with respect to Jakafi® (ruxolitinib) including its
potential efficacy and therapeutic and commercial value, anticipated future accomplishments in drug discovery, development and product commercialization, plans and expected timelines regarding our
pipeline and advancing our drug candidates through clinical trials and regulatory submissions, potential therapeutic and commercial value, including attributes and indications, of our drug candidates, and
our business goals for 2013 contain predictions, estimates and other forward-looking statements.
These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including unanticipated developments in and risks related to the efficacy or safety of
Jakafi, the acceptance of Jakafi in the marketplace, risks related to market competition, the results of further research and development, the high degree of risk and uncertainty associated with drug develop-
ment, clinical trials and the regulatory approval processes, risks related to the timing of and patient enrollment in clinical trials, the risk that results of clinical trials may be unsuccessful or insufficient to meet
applicable regulatory standards, unanticipated developments in and risks related to the efficacy or safety of our compounds in clinical trials, risks associated with our dependence on our relationships with
our collaboration partners, and other risks detailed from time to time in our reports filed with the Securities and Exchange Commission, including our Form 10-K for the year ended December 31, 2012.
Incyte disclaims any intent or obligation to update these forward-looking statements.
Jakafi is a registered trademark of Incyte Corporation.
© 2013, Incyte Corporation. All rights reserved.
The Drive to Discover. The Experience to Deliver.
Experimental Station • Route 141 & Henry Clay Road • Building E336 • Wilmington, DE 19880
Tel: 1.855.4.INCYTE (1.855.446.2983) • Tel: 302.498.6700 • www.incyte.com