Incyte Reports 2019 Fourth Quarter and Year-End Financial Results and Provides 2020 Financial Guidance and Updates on Key Clinical Programs - Total product and royalty revenues of $579 million (+24%

Fourth Quarter and Year-End Financial Results and Provides 2020 Financial Guidance and Updates on Key Clinical Programs

Conference Call and Webcast

Scheduled Today at 8:00 a.m. EST

WILMINGTON, Del. - February 13, 2020

- Incyte (Nasdaq:INCY) today reports 2019 fourth quarter and year-end financial results, announces 2020 guidance and

provides a status update on the Company's development portfolio.

"Revenue growth continues to be very strong, driven by

robust demand across all three indications for Jakafi," stated Herv Hoppenot, Chief Executive Officer, Incyte. "As

we enter 2020, we have multiple opportunities for additional growth. We recently announced successful initial results from the

Phase 3 TRuE-AD program, which we plan to include as part of the NDA in the fourth quarter of 2020 seeking approval of ruxolitinib

cream for the treatment of patients with mild-to-moderate atopic dermatitis. We also look forward to the FDA decisions on the

potential approvals of pemigatinib and capmatinib later this year. The recent progress made within both oncology and dermatology,

as well as the recently announced MorphoSys collaboration for tafasitamab, positions Incyte very well as we deliver on our objectives

for diversification and growth."

LIMBER - key highlights

The LIMBER program, a key development priority

designed to maintain our Leadership In MPNs BEyond Ruxolitinib, is evaluating multiple monotherapy and combination strategies

to deliver improved therapies for patients with myeloproliferative neoplasms (MPNs). The program has three key areas of focus:

new formulations of ruxolitinib; JAK inhibitor-based combinations; and new targets beyond JAK inhibition.

A once-a-day formulation of ruxolitinib is

being developed and is currently being evaluated in clinical pharmacology studies. Following positive proof-of-concept data of

ruxolitinib plus parsaclisib in myelofibrosis (MF) patients with a suboptimal response to ruxolitinib monotherapy, a randomized

pivotal trial is being prepared in this setting. Additional JAK-based combinations are either ongoing or in preparation.

Recruitment has been discontinued in the RESET

trial evaluating ruxolitinib as a potential treatment for patients with essential thrombocythemia.

Oncology beyond MPNs - key highlights

Data from the randomized Phase 3 REACH2 trial

of ruxolitinib versus best available therapy (BAT) in patients with steroid-refractory acute graft-versus-host disease (GVHD)

have been accepted for presentation within the Presidential Symposium of the 46th annual meeting of the European Society for Blood

and Marrow Transplantation (EBMT, March 22-25). As previously announced, the trial, which was conducted in collaboration with

Novartis, met its primary endpoint of improving overall response rate (ORR) at Day 28 with ruxolitinib treatment compared to BAT.

REACH3, the Phase 3 trial of ruxolitinib in

patients with steroid-refractory chronic GVHD being run in collaboration with Novartis, is ongoing and results are expected in

the second half of 2020. If successful, and if approved, steroid-refractory chronic GVHD would be the fourth Jakafi indication

available to patients in the US.

In January, it was announced that GRAVITAS-301,

the Phase 3 trial of itacitinib as a treatment for patients with newly diagnosed acute GVHD, did not meet the primary endpoint.

Clinical development of itacitinib also includes

GRAVITAS-309, a Phase 3 trial of itacitinib as a treatment for patients with newly diagnosed chronic GVHD.

In November, the FDA accepted the New Drug

Application (NDA) for pemigatinib in second-line cholangiocarcinoma for Priority Review. The Prescription Drug User Fee Act (PDUFA)

target action date is May 30, 2020. In early January, Incyte announced that the Marketing Authorization Application (MAA) seeking

approval in Europe for pemigatinib as a second-line treatment for cholangiocarcinoma patients with FGFR2 fusions or rearrangements

was validated by the EMA.

The CITADEL program is evaluating parsaclisib

as a monotherapy across three types of non-Hodgkin lymphoma: follicular lymphoma; marginal zone lymphoma; and mantle cell lymphoma.

Clinical development of INCMGA0012 includes

ongoing evaluation as a monotherapy in niche cancer opportunities as well as a planned program for the first-line treatment of

patients with non-small cell lung cancer (NSCLC).

Incyte recently announced a global collaboration

with MorphoSys for the development and commercialization of tafasitamab, an anti-CD19 monoclonal antibody. Pending clearance by

antitrust authorities, the collaboration agreement is expected to become effective in the first half of 2020.

Inflammation and Autoimmunity (IAI) -

TRuE-AD2, the first of two Phase 3 trials in

the TRuE-AD development program of ruxolitinib cream in patients with mild-to-moderate atopic dermatitis, met its primary endpoint.

The overall efficacy and safety profile observed in TRuE-AD2 was consistent with previous data, and no new safety signals were

The results of TRuE-AD1, the second of two

Phase 3 trials required for regulatory submission, are anticipated to be available in the first quarter of 2020. The NDA submission,

seeking approval of ruxolitinib cream in atopic dermatitis, is expected in the fourth quarter of 2020 following long-term safety

and efficacy data from both pivotal trials.

The two Phase 3 trials in the TRuE-V pivotal

program evaluating ruxolitinib cream in patients with vitiligo are recruiting well and results are expected in 2021.

Phase 2 trials of INCB54707 in hidradenitis

suppurativa and parsaclisib in autoimmune hemolytic anemia are progressing as planned.

The clinical program of INCB00928, Incyte's

ALK2 inhibitor, is in preparation in patients with fibrodysplasia ossificans progressiva, a disorder in which muscle tissue and

connective tissue such as tendons and ligaments are gradually replaced by bone.

The Phase 2 trial of low-dose itacitinib in

patients with ulcerative colitis has been discontinued, and initial data from the clinical evaluation of parsaclisib in patients

with Sj gren's syndrome did not warrant continuation of the trial.

Discovery and early development -

Incyte's portfolio of earlier-stage clinical

candidates is summarized below.

Partnered - key highlights

In January, Incyte and Lilly announced initial

results of BREEZE-AD4 and BREEZE-AD5, the final two trials in the pivotal program evaluating baricitinib in patients with moderate-to-severe

atopic dermatitis. Lilly recently submitted baricitinib for regulatory review in Europe as a treatment for patients with moderate-to-severe

atopic dermatitis, and has announced plans to submit for approval in the U.S. and Japan in 2020.

In February, Incyte and Novartis announced

that the NDA for capmatinib was accepted for Priority Review by the FDA, seeking approval in patients with NSCLC and MET exon

14 skipping mutations.

2019 Fourth Quarter and Year-End Financial

The financial measures presented in this press

release for the quarter and year ended December 31, 2019 and 2018 have been prepared by the Company in accordance with U.S. Generally

Accepted Accounting Principles ("GAAP"), unless otherwise identified as a Non-GAAP financial measure. Management believes

that Non-GAAP information is useful for investors, when considered in conjunction with Incyte's GAAP disclosures. Management

uses such information internally and externally for establishing budgets, operating goals and financial planning purposes. These

metrics are also used to manage the Company's business and monitor performance. The Company adjusts, where appropriate,

for expenses in order to reflect the Company's core operations. The Company believes these adjustments are useful to

investors by providing an enhanced understanding of the financial performance of the Company's core operations. The metrics

have been adopted to align the Company with disclosures provided by industry peers.

Beginning in the first quarter of 2019, after

reviewing our Reconciliation of GAAP Net Income to Selected Non-GAAP Adjusted Information with the U.S. Securities & Exchange

Commission, we no longer adjust for upfront consideration and milestones that are part of collaboration agreements with new or

existing partners. This revised methodology is reflected in this press release for the quarter and year ended December 31, 2019