Incyte Annual Report 2016

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FY2016 Annual Report · Incyte

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2 0 1 6 A N N U A L R E P O R T

TABLE OF CONTENTS

Letter to Shareholders

Key Planned Goals for 2017

Innovation

Growth

Strength

Corporate Responsibility

Company Information

Incyte’s Executive
Management Team

Standing, left to right:
Steven H. Stein, MD;
Paula J. Swain;
Wenqing Yao, PhD;
Jonathan E. Dickinson;
David W. Gryska;
Hervé Hoppenot;
Michael Morrissey;
Vijay Iyengar, MD

Seated, left to right:
Eric H. Siegel, JD, MBA;
Reid M. Huber, PhD;
Barry P. Flannelly,
PharmD, MBA

LETTER TO SHAREHOLDERS

Dear Shareholders,

At Incyte, we believe that innovation and the discovery of new products
creates long-term value for patients and society, as well as for our employ-
ees and our shareholders. It is our commitment to these objectives that has
enabled us to make significant progress in the last year. During 2016, we
saw continued growth in the number of patients being treated with Jakafi®
(ruxolitinib), our JAK1/JAK2 inhibitor, and we also added Iclusig® (ponati-
nib) to our commercial portfolio as part of our European transaction with
ARIAD Pharmaceuticals, Inc. In February 2017, with Eli Lilly & Company, we
announced the European approval of Olumiant® (baricitinib).

Summary of Revenue-Generating Products

APPROVED TERRITORY

PRODUCT NAME DRUG NAME

I believe that we are on
track to reach our goal of
becoming a world-class,
global biopharmaceutical
organization. For the first
time in the history of our
company, Incyte’s total
yearly revenue surpassed
$1 billion in 2016. Our revenue growth this past year was largely fueled by

ruxolitinib1 JAK1/JAK2 Global

ponatinib BCR-ABL

JAK1/JAK2 Europe

Jakafi®
Jakavi®

Olumiant®

baricitinib2

Europe

Iclusig®

TARGET

INDICATION(S)

MF3; PV4

CML and
Ph+ ALL5

RA6

1. Ex-U.S. rights to ruxolitinib licensed to Novartis, commercialized by Novartis as Jakavi
2. Worldwide rights to baricitinib licensed to Lilly
3. Intermediate or high-risk myelofibrosis (MF), including primary myelofibrosis, post-polycythemia vera
myelofibrosis and post-essential thrombocythemia myelofibrosis
4. Patients with polycythemia vera (PV) who have had an inadequate response to or are intolerant of
hydroxyurea
5. Chronic myeloid leukemia (CML) and Philadelphia-positive (Ph+) acute lymphoblastic leukemia (ALL) who
are resistant to or intolerant of certain second generation BCR-ABL inhibitors and all patients who have

the T315I mutation

6. Moderate to severe active rheumatoid arthritis (RA) in adult patients who have responded inadequately

to, or who are intolerant to one or more disease-modifying anti-rheumatic drugs

Net Product and Royalty Revenue

Research & Development Expense1

FY 2016

FY 2015

FY 2014

FY 2013

FY 2012

$200

$400

$600

$800

$1,000

IN MILLIONS

1. 2017 Research & Development Expense Guidance = $990–$1,040 million

Jakafi sales in the U.S.
which, in turn, was driven
in large part by the grow-
ing base of MF and PV
patients that are benefit-
ting from this treatment.
The revenue generated
by our products allows us
to continue to reinvest in
our portfolio — we expect
that the investments we
are making today will
position us for long-term
success.

We have a broad and diver-
sified selection of clinical candidates in our growing portfolio, the majority
of which were created in our own laboratories in Wilmington, DE, which is
further testament to our commitment to innovation.

We believe that our portfolio contains both first-in-class and best-in-class
candidates and that it is both unique and unparalleled for a company of
our size. It has also grown considerably in 2016. In last year’s Letter to
Shareholders and Annual Report, we detailed 14 clinical candidates, more
than half of which have since moved forward into the next stage of clinical
development. We have also added four new clinical candidates resulting
from our internal discovery efforts as well as licensing transactions in the
last twelve months. I’ll now detail some of the major advances we have
made and are planning across our portfolio.

Jakafi, first approved in 2011, has over a decade of expected patent pro-
tection remaining in the U.S. and we plan to use this opportunity to
investigate its potential utility in other disease areas. These plans include a
pivotal program in patients with steroid-refractory graft versus host disease
(GVHD), which is underway, and a pivotal program in patients with essential
thrombocythemia, which is planned to begin later this year.

Following positive proof-of-concept data published late last year, itacitinib,
our selective JAK1 inhibitor, is expected to begin a pivotal program in
patients with treatment-naïve acute GVHD this year.

We believe that IDO1 enzyme inhibition could represent an exciting new
therapeutic combination option for patients with cancer. To that end,
our robust ECHO (Epacadostat Clinical development in Hematology and
Oncology) program is investigating epacadostat, our IDO1 enzyme inhibitor,
in combination with checkpoint inhibitors, vaccines, chemotherapy, and epi-
genetic therapies. ECHO-301, a Phase 3 trial of epacadostat in combination
with pembrolizumab in patients with unresectable or metastatic melanoma
is ongoing, and we look forward to sharing those data once available.
Earlier this year, we announced significant expansions of the ECHO pro-
gram, and during 2017 we expect to initiate pivotal trials of epacadostat in
combination with pembrolizumab in four new tumor types and epacadostat
in combination with nivolumab in two tumor types.

Over the last 12 months, we initiated four Phase 2 trials that, if successful,
may be registration-enabling. Our FGFR1/2/3 inhibitor, INCB54828, is being
studied across three different trials in patients with bladder cancer, cholan-
giocarcinoma, and 8p11 MPNs respectively. The fourth potentially-pivotal
Phase 2 trial is the CITADEL-202 study of our PI3kδ inhibitor, INCB50465,
which recently began in patients with diffuse large B-cell lymphoma (DLBCL).

Our early-stage targeted portfolio also progressed well last year, including
the addition of a second BRD inhibitor, INCB57643, and our LSD1 inhibitor,
INCB59872, into clinical trials. We expect our FGFR4 inhibitor, INCB62079,
to enter clinical trials this year, and dose-escalation trials for our first BRD
inhibitor, INCB54329, and our PIM inhibitor, INCB53914, are ongoing.

Within our early-stage immuno-therapy portfolio, dose-escalation trials
of INCB01158, the arginase inhibitor we recently licensed from Calithera,
INCAGN1876, our anti-GITR agonist, and INCAGN1949, our anti-OX40
agonist, are all ongoing. We continue to perform a thorough assessment of
the profile of our PD-1 inhibitor, INCSHR1210, before determining whether
to enroll any additional subjects.

Our development program for a topical formulation of ruxolitinib continues
to progress and is currently being studied in patients with alopecia areata
and with atopic dermatitis. A trial in patients with vitiligo is expected to
begin in the coming months.

I’ll finish the portfolio review with an update on our partnered programs.
Baricitinib, marketed as Olumiant by Eli Lilly, was recently approved in
Europe for the treatment of patients with rheumatoid arthritis. In April
2017, the FDA issued a complete response letter (CRL) for baricitinib. In the
letter, the FDA indicated that additional clinical data are needed to deter-
mine the most appropriate doses as well as to further characterize safety
concerns across treatment arms. We, along with Lilly, disagree with the
agency’s conclusions and we currently expect that Lilly plans to now engage
with the FDA to discuss their concerns in an effort to determine a poten-
tial path forward. Capmatinib, the c-MET inhibitor which we licensed to
Novartis, is currently in a Phase 1b/2 trial in patients with lung cancer, data
from which are expected in 2017.

Since last year’s Annual Report we have announced three strategic transac-
tions, which strengthened Incyte in important ways.

In December last year, we announced a strategic collaboration with Merus
NV, which provides us with long-term access to its leading bispecifics tech-
nology, Biclonics, for up to 11 programs.

Earlier this year, we announced a collaboration with Calithera Biosciences
that gave us exclusive development and commercialization rights to
INCB01158, the first-in-class, oral arginase inhibitor. We believe that argin-
ase is an important target within the tumor microenvironment and could
have a role in combination with other immuno-oncology therapies in our
portfolio, including epacadostat.

Incyte is building
new corporate
offices at the
Wilmington, DE
headquarters.
Pictured here is an
illustration of how
the site will look
once completed
(expected at the
end of 2017).

The third transaction was the acquisition of ARIAD Pharmaceutical’s
European business which immediately expanded our footprint in Europe,
adding significant experience, resources and relationships to our existing
European organization. We are thrilled to have welcomed this group into
our Incyte family. The expansion and addition to our European team leaves
us well-positioned to maximize the potential of our broad development
portfolio.

With a strong financial position driven by expected revenues from Jakafi
and Iclusig and royalties from Jakavi and Olumiant, we will continue to
invest in the long-term success of Incyte. Looking forward, we have taken
the first steps towards expanding our company into the Asia-Pacific region,
with initial plans for a clinical development team in Japan. We are also
looking forward to moving into our newly expanded global headquarters
in Wilmington, DE.

I would like to close by thanking my Incyte colleagues, who, as we strive
to discover and develop innovative medicines for patients in need, are
our greatest asset. I would also like to sincerely thank and recognize the
patients, families, researchers, and physicians who participate in and help
to conduct our clinical trials. Together, through our shared focus on innova-
tion and a dedication to scientific excellence, we will seek to transform the
future of cancer treatment.

Best regards,

Hervé Hoppenot
Chairman, President and CEO

KEY PLANNED GOALS FOR 2017

INITIATION OF NEW PIVOTAL PROGRAMS:

Ruxolitinib (JAK1/JAK2): Essential thrombocythemia

Itacitinib (JAK1): Treatment-naive acute graft versus host disease

Epacadostat (IDO1): Bladder, kidney, head & neck and lung cancer in combination
with pembrolizumab

Epacadostat (IDO1): Head & neck and lung cancer in combination with nivolumab

POTENTIAL CLINICAL DATA PRESENTATIONS:

INCB54828 (FGFR1/2/3): Phase 1/2 dose escalation data; multiple solid tumors at
the American Association for Cancer Research (AACR) Annual Meeting in April 2017

Epacadostat (IDO1): Phase 2 data in combination with pembrolizumab; multiple
tumor types (ECHO-202) at the American Society of Clinical Oncology (ASCO) in
June 2017

Epacadostat (IDO1): Phase 2 data in combination with nivolumab; multiple tumor
types (ECHO-204) at the American Society of Clinical Oncology (ASCO) in June 2017

INCB54329 (BRD): Phase 1/2 dose escalation data; advanced malignancies

INCB57643 (BRD): Phase 1/2 dose escalation data; advanced malignancies

INCB53914 (PIM): Phase 1/2 dose escalation data; advanced malignancies

INNOVATION

The pursuit of scientific excellence is at the core of Incyte. Through world-
class biology and medicinal chemistry expertise, Incyte seeks to create
first-in-class or best-in-class product candidates.

JAKAFI (ruxolitinib): The first and only JAK inhibitor approved for use in
cancer patients

The signature example of our commitment to innovation is our JAK1/JAK2
inhibitor, ruxolitinib, which we commercialize in the U.S. as Jakafi. Our
JAK inhibitor discovery program was initiated in 2003, and the first admin-
istration of ruxolitinib to a patient with myelofibrosis was in 2007. Jakafi
was first approved by the FDA in 2011 for patients with intermediate and
high-risk myelofibrosis (MF1), and then in 2014 for patients with uncon-
trolled polycythemia vera
(PV2). To date, more than
35,000 patients worldwide
have been treated with
ruxolitinib.

Pooled 5-Year Data Supports Overall Survival Advantage
Observed in Patients with MF Treated with Jakafi

t
i
l
i

1.0
0.9
0.8
y 0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0

b
a
b
o
r
P

S
O

In 2016, we announced
an exploratory pooled
analysis of data from
the five-year follow-up
of the COMFORT-I and
COMFORT-II Phase 3
trials of patients treated
with Jakafi. These data
further supported previ-
ously published overall
survival findings, showing

Ruxolitinib
(n=301)

RPSFT
(n=227)

Median OS, y

5.3

2.3

HR, 0.35 (95% CI, 0.23–0.59)

0.0

0.5

1.0

1.5

2.0

2.5

3.0
OS Time, y

3.5

Ruxolitinib

Control

RPSFT

Verstovsek, et al, 2016 ASH poster (abstract 3110)
RPSFT = rank-preserving structural failure time
OS = overall survival

4.0

4.5

5.0

5.5

6.0

a 30 percent reduction in the risk of death for Jakafi patients versus those
treated with best available therapy or placebo.

Incyte is the world-leader in JAK inhibition and the understanding of JAK/
STAT biology, and Jakafi remains the first and only FDA-approved therapy
for either MF1 or PV2. We plan to further expand development of ruxolitinib
by initiating pivotal development programs in patients with graft versus
host disease (GVHD), which has already begun, and in patients with essen-
tial thrombocythemia (ET), which we expect to start later this year.

EPACADOSTAT: The first-in-class IDO1 enzyme inhibitor for a new potential
paradigm in cancer treatment

Incyte is also at the fore-
front of understanding
the enzyme indoleamine
2, 3 dioxygenase 1 (IDO1),
which is a key regulator of
the mechanisms that are
responsible for allowing
tumors to escape from a
patient’s immune surveil-
lance. By inhibiting IDO1,
it is proposed that this
“brake” on the anti-tu-
mor immune response
is removed, allowing
greater anti-tumor efficacy.
Epacadostat is a first-in-
class, potent and selective

IDO1 suppresses
T cell responses
via tryptophan
metabolism.
Epacadostat, by
blocking IDO1,
enhances anti-
tumoral immunity
and inhibits tumor
growth.

oral inhibitor of the IDO1 enzyme, and we are developing it in combination
with other oncology agents.

ECHO (Epacadostat Clinical development in Hematology and Oncology) is
a global clinical development program being conducted by Incyte to inves-
tigate epacadostat in combination with other immunotherapies across
multiple tumor types.

Pivotal Development

• Bladder cancer in combination

with pembrolizumab

• Head & neck cancer in combination
with pembrolizumab

• Melanoma in combination
with pembrolizumab

• Non-small cell lung cancer in
combination with pembrolizumab

• Renal cancer in combination
with pembrolizumab

• Head & neck cancer in combination
with nivolumab

• Non-small cell lung cancer in

combination with nivolumab

Clinical data from the ECHO
program to date has been
exciting, and the most
recent update was provided
at the European Society
for Medical Oncology
(ESMO) meeting last year.
In patients with melanoma,
treatment with epacado-
stat in combination with
pembrolizumab anti-PD-1
immunotherapy led to
higher rates of disease

control and higher rates of objective responses which deepened over time,
compared to those that have previously been observed with anti-PD-1
monotherapy.

The most advanced program in the ECHO series of trials is ECHO-301, the
pivotal Phase 3 study of epacadostat plus pembrolizumab for the treatment
of patients with unresectable or metastatic melanoma. If ECHO-301 is suc-
cessful, Incyte plans to seek FDA approval of epacadostat in this indication.
Additional pivotal programs are planned for epacadostat in combination
with pembrolizumab in patients with non-small cell lung cancer (NSCLC),
bladder cancer, renal cancer, and head & neck cancer as well as for epacado-
stat in combination with nivolumab in patients with NSCLC and head & neck
cancer. We expect these programs to begin in 2017.

1. Intermediate or high-risk myelofibrosis (MF), including primary myelofibrosis, post-polycythemia vera
myelofibrosis and post-essential thrombocythemia myelofibrosis
2. Patients with polycythemia vera (PV) who have had an inadequate response to or are intolerant of
hydroxyurea

GROWTH

Our dynamic revenue growth has provided us with the resources to reinvest
in our portfolio, which then supports the further growth of the company.

REVENUE

1,200

Total revenue surpassed
$1 billion in 2016

i
l
l
i

)
n
o

600

800

1,000

m
$
(
e
u
n
e
v
e
R

Net product revenue of
Jakafi as well as royalties
from ex-U.S. sales of Jakavi
by Novartis have shown
strong growth over the
last five years. The annual
growth of Jakafi sales in
the U.S. in 2016 was 42%,
and the annual growth
of total sales in 2016 was
47%. We licensed European
rights to Iclusig from
ARIAD in 2016, and after its European approval in early 2017, royalties from
Olumiant sales by Lilly will provide us with a third source of revenue.

Jakavi Royalties

FY 2014

FY 2012

FY 2013

l
a
t
o
T

Iclusig

Jakafi

200

400

FY 2015

FY 2016

Milestones, Other

PRODUCT PORTFOLIO

Revenue growth supports the investments we are making in clinical devel-
opment. We’ve added multiple products to our portfolio in the past twelve
months, both from our laboratories and from partners via licensing trans-
actions. In addition, more than half of our product candidates have moved
into the next stage of development since last year (see graphic). We now
have 18 clinical candidates against 14 targets in our portfolio.

Incyte Corporation’s
headquarters are
in Wilmington,
Delaware. We have
expanded further
into Europe with
offices now located
in:

• Madrid, Spain
• Amsterdam,
The Netherlands
• Munich, Germany
• Geneva,
Switzerland
• Lausanne,
Switzerland
• Leatherhead,
United Kingdom
• Milan, Italy
• Paris, France
• Stockholm, Sweden
• Vienna, Austria

Current Annual Report Portfolio

Jakafi® (ruxolitinib)1

JAK1/JAK2

MF, PV2

Iclusig® (ponatinib)3

BCR-ABL

CML, Ph+ALL

U.S.

Europe

Targeted
Therapy

Immuno-
Therapy

Ruxolitinib

Itacitinib

INCB52793

INCB50465

INCB54828

INCB54329

INCB57643

INCB53914

INCB59872

INCB62079

Epacadostat

INCB011585

INCSHR1210

INCAGN1876

INCAGN1949

JAK1/JAK2

GVHD

Essential thrombocythemia4

JAK1

PI3K(cid:31)

GVHD4

NSCLC

Advanced malignancies

DLBCL

FGFR1/2/3

Bladder cancer, cholangiocarcinoma, 8p11 MPN

BRD

PIM

LSD1

FGFR4

IDO1

ARG

PD-1

GITR

OX40

Advanced malignancies

AML, small cell lung cancer

Liver cancer

Melanoma

NSCLC, renal, head & neck, bladder cancer 4

Multiple tumor types

Solid tumors

Non-Onc

Topical ruxolitinib6

JAK1/JAK2

AA, AtD, vitiligo

Partnered

Olumiant® (baricitinib)7

JAK1/JAK2

Rheumatoid arthritis

Baricitinib7

Capmatinib8

JAK1/JAK2

c-MET

Psoriatic arthritis4

Atopic dermatitis, SLE

NSCLC, liver cancer

Europe

1. Jakafi marketed by Incyte in the US; ruxolitinib licensed to Novartis ex-US 2. Patients with intermediate or high-risk myelofibrosis; Patients with polycythemia vera
who have had an inadequate response to or are intolerant of hydroxyurea 3. European rights to Iclusig licensed from ARIAD 4. Pivotal trials expected to begin in
2017 5. Co-development with Calithera 6. AA = alopecia areata, AtD = atopic dermatitis 7. Worldwide rights to baricitinib licensed to Lilly: Approved as Olumiant in
Europe, CRL from FDA in US; SLE = systemic lupus erythematosus 8. Worldwide rights to capmatinib licensed to Novartis

2015 Annual Report Portfolio

Jakafi® (ruxolitinib)1

JAK1/JAK2

MF, PV2

U.S.

Ruxolitinib

JAK1/JAK2

GVHD

Targeted
Therapy

Immuno-
Therapy

Itacitinib

INCB52793

INCB50465

INCB54828

INCB54329

INCB53914

INCB59872

Epacadostat

INCSHR1210

INCAGN1876

INCAGN1949

JAK1

PI3K(cid:31)

GVHD4

NSCLC

Advanced malignancies

Hematological malignancies

FGFR1/2/3

Solid tumors

BRD

PIM

LSD1

IDO1

PD-1

GITR

OX40

Advanced malignancies

AML, small cell lung cancer

Melanoma

Multiple tumor types

Solid tumors

Non-Onc

Topical ruxolitinib6

JAK1/JAK2

Alopecia areata

Baricitinib7

JAK1/JAK2

Rheumatoid arthritis

Partnered

Baricitinib7

Capmatinib8

JAK1/JAK2

Psoriasis, AtD, SLE4

c-MET

NSCLC, liver cancer, GBM

1. Jakafi marketed by Incyte in the US; ruxolitinib licensed to Novartis ex-US 2. Patients with intermediate or high-risk myelofibrosis; Patients with polycythemia
vera who have had an inadequate response to or are intolerant of hydroxyurea 3. European rights to Iclusig licensed from ARIAD 4. Pivotal trials expected to begin
in 2017 5. Co-development with Calithera 6. AA = alopecia areata, AtD = atopic dermatitis 7. Worldwide rights to baricitinib licensed to Lilly, SLE = systemic lupus
erythematosus 8. Worldwide rights to capmatinib licensed to Novartis

DISCOVERYCLINICAL PROOF OF CONCEPTPIVOTALMARKETEDDISCOVERYCLINICAL PROOF OF CONCEPTPIVOTALMARKETED981

TEAM

1,000

900

800

700

600

500

400

300

200

100

t
n
u
o
c
d
a
e
H
c
i
r
o
t
s
i
H

691

587

480

412

367

185

195

211

220

246

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

As we expand our portfo-
lio with new and exciting
product candidates and
expand into new geog-
raphies, our team grows
along with it. This
chart shows our overall
employee growth over the
last ten years — Incyte has
grown more than four-fold
over the last decade as we
seek the best talent from

both academia and industry to support our growing portfolio.

As we fulfill our mission to create innovative medicines, we are building
the necessary platforms to enable global development of our product candi-
dates and the organization needed to deliver them to patients in need.

In 2015, we established our first office outside of the U.S. in Geneva,
Switzerland, and we expanded our presence in Europe less than a year
later with the purchase of ARIAD’s European business. This immediately
expanded our number of European offices from one to nine offices, and
provided us a financially efficient way to prepare for future approvals and
drug launches in Europe.

STRENGTH

Our core strength lies in the collective experience and passion of our team
and the financial strength to maintain our commitment to the creation of
innovative medicines.

STRENGTH IN OUR TEAM

As we expand our discovery efforts, grow our clinical portfolio, and aim
to launch new medicines for patients in need, our team is our greatest
strength, and we seek only the best scientific talent. We pride ourselves in
having a focused and cohesive unit in R&D.

“It is not enough just to be smart. We
look to our colleagues to be as creative
as they are critical in their thinking.”

— Wenqing Yao, Head of Discovery Chemistry, joined Incyte in 2001

Peg Squier, Head of US Medical Affairs, joined Incyte in 2016
“I first got to know Incyte through my work at Novartis. I
was impressed by the quality of the science at Incyte, as well
as the speed of execution in getting Jakafi approved. After
more than a decade in the industry, you start to get a sense
of which companies are on a positive path. With some terrific
new senior leaders at the company, I knew if I had the oppor-
tunity to work for Incyte that I would take it. I’m so delighted
to work here; I feel like we’re really moving the needle.”

Luca Marini, Head of European Medical Affairs, joined Incyte
in 2016
“It is a pleasure to work where there is such a rich pipeline,
and to work with true leaders who have real vision. At Incyte,
we have a driven and collaborative team, many of whom have
already worked together elsewhere. Unlike at larger more
bureaucratic companies, we have the opportunity and the
challenge of being decision-makers. I feel at home here, and
I’m excited to be a part of the team.”

FINANCIAL STRENGTH

We ended 2016 with approximately $800 million cash and

equivalents. To further strengthen our balance sheet, in February 2017, we
successfully converted almost $700 million of debt into Incyte shares.

In February 2017, Incyte joined the S&P 500 index, an American stock
market index based on the market capitalizations of 500 large companies
having common stock listed on the New York Stock Exchange or NASDAQ.
The commercial momentum of Jakafi also paves the way for our future
endeavors. Jakafi provides us with strong revenue growth, which allows us
to expand our team, further add to our geographic footprint, and reinvest
in our portfolio. Dynamic revenue growth coupled with a strong balance
sheet positions us well as we seek to build Incyte into a global biopharma-
ceutical company.

In the spring of 2017,
Incyte was added to
the S&P 500 Index.

CORPORATE RESPONSIBILITY

At Incyte, we are committed to enhancing the communities in which we
operate, improving the treatment and experience of patients, supporting
our colleagues, and protecting the environment.

COMMITMENT TO COMMUNITY

Incyte is committed to being an active participant in improving our com-
munity. Incyte Involved includes three initiatives focused on philanthropy
as well as employee and community engagement. These include the Incyte
Charitable Giving Foundation, the Community Service Program and the
Matching Gifts Program.

INCYTE
Charitable Giving Foundation

INCYTE
Community Service Program

INCYTE
Matching Gifts Program

The Incyte Charitable Giving Foundation was launched in 2016 as a way
for us to give back by supporting charitable organizations specifically
serving the needs of communities in Delaware. The Incyte Charitable
Giving Foundation is focused on two areas—Oncology Patient Support and
Resources and Helping People in Need. In 2016 alone, the Incyte Charitable
Giving Foundation provided support to ten local organizations.

The Community Service Program allows employees
to take paid time off in order to volunteer their
time to their own communities. This year, employ-
ees donated 464 hours of their time, including
with organizations such as Ronald McDonald
House Delaware, Cancer Support Community, and
the Boys & Girls Club.

In addition to supporting local charities, Incyte
supports employees’ efforts to help charities of
their choice through matching donations. Incyte’s
Matching Gifts Program encourages employees
to donate by matching 100% of the donation up
to a pre-determined cap. In 2016, this program
matched over $100,000 given by our colleagues to
their charities of choice.

COMMITMENT TO PATIENTS

We are committed to positively impacting the lives of patients with cancer
and other diseases. Our clinical research is held to the highest standards of
scientific and ethical rigor and we strive to implement programs and ini-
tiatives to remove barriers to access for our medicines. We execute on this
commitment through our rigorous discovery process, our adherence to all
clinical trial standards set by the FDA and other global regulatory bodies,
and our focus on data transparency through presentations of both positive
and negative data at appropriate medical meetings.

Our IncyteCARES (Connecting to Access, Reimbursement, Education and
Support) program strives to support patients before and during treatment
with Jakafi through ongoing education, resources as well as a dedicated
nursing support program. This comprehensive program also provides co-pay
assistance or free drug to eligible patients to help cover some costs associ-
ated with their Jakafi prescription.

For more information, visit IncyteCares.com

The Voices of MPN website was launched by Incyte to help connect MPN
patients to information, educational programs, and community activities.
It also provides a forum for people to share stories and to promote disease
awareness. Each year in partnership with CURE Magazine, Incyte sponsors
the MPN Heroes program, which seeks to honor and celebrate individuals
and organizations for their contributions in caregiving, community leader-
ship, or scientific advances.

For more information, visit VoicesofMPN.com

The legal team at
Incyte participated
in the Incyte
Involved Community
Service Program
by preparing food
at the Ronald
McDonald House in
Delaware.

COMMITMENT TO EMPLOYEES

Incyte is committed to ensuring our colleagues are happy and healthy.
Incyte offers competitive compensation packages, including bonus poten-
tial as well as equity. Over the years, we have added numerous additional
benefits to support employees in their professional as well as personal
endeavors.

We encourage all employees to participate in continuing education through
internal training classes as well as relevant external courses. Additional
learning seminars are also offered on-site to employees, including nutrition
and financial planning seminars.

Incyte is committed to the health of its employees. As such, a competitive
benefits package is offered in addition to free flu shots, and more recently,
access to free melanoma screenings. We recently introduced a program that
offers patient support, which helps employees, spouses, domestic partners,
children, parents, and parents-in-law with a variety of healthcare and insur-
ance-related issues, including researching certain services, securing second
opinions, and making more informed healthcare decisions. All team mem-
bers, including part-time employees, are eligible for these benefits.

Furthermore, Incyte has introduced a nutrition-conscious program in its
cafeterias, providing healthy breakfast, lunch, and snack options. Menu
options that meet the standard for calories and quality ingredients are
labeled as such to make sure employees are able to make more informed
dietary choices while at work. We also offer office-based group fitness
classes after work.

Children who
attended Take Your
Child to Work Day
last year created
their own lava lamps
with Incyte scientists.

Once a year, Incyte hosts Take Your Child to Work Day. At
this event, employees are encouraged to bring their children,
nieces and nephews to Incyte Headquarters to learn about
science and participate in experiments and activities.

COMMITMENT TO THE ENVIRONMENT

Incyte is committed to operate in a way that reduces its
environmental impact. Programs such as the Air Emissions
Program and the Green House Gas Reduction Program collect
data in order to measure and reduce emissions. We manage
all hazardous waste in compliance with EPA regulations. All
hazardous waste is recycled, reused, fuel-blended or disposed
of at an EPA approved disposal facility. In addition, all employ-
ees are encouraged to recycle, with clearly labeled sorting bins
throughout the offices to separate waste from recycling. Non-
recyclable waste is then converted into energy. In addition,
Incyte has installed electric car charging units in its parking lots for employ-
ees to use during the work day.

Incyte is continuously looking to improve its environmental responsibility
initiatives and aims to decrease its carbon footprint on an ongoing basis.

COMMITMENT TO COMPLIANCE AND TRANSPARENCY

We aim to make a difference—for patients, medical professionals, organi-
zations, the broader healthcare community and all our global stakeholders.
To achieve these goals, we are committed to conducting business ethically.
We hold ourselves accountable to the highest standards to ensure that all
of our interactions are conducted appropriately. We regularly review and
amend our practices according to current laws and regulations, as well as
both our own standards and the standards required of us by the communi-
ties in which we live and work.

For more details on our Corporate Governance guidelines, please visit
http://www.incyte.com/ir/corporate-governance.aspx

Incyte is committed to the highest standard of business
ethics. All new team members are required to read
and acknowledge their commitment to comply with
Incyte’s Code of Business Conduct and Ethics, which
serves as our roadmap for acting ethically whenever
and wherever we conduct business and provides,
among other things, that:

• We foster a respectful and safe workplace

• We conduct business ethically

• We operate honestly and transparently

• We act as a good corporate citizen