Incyte Reports 2020 First Quarter Financial Results and Provides Updates on Key Clinical Programs - Total product and royalty revenues of $569 million (+24% vs Q1 2019) for the quarter ended

Incyte Reports 2020 First Quarter Financial

and Provides Updates on Key Clinical Programs

Conference Call and Webcast Scheduled Today

WILMINGTON, Del. - May

5, 2020 - Incyte (Nasdaq: INCY) today reports 2020 first quarter financial results, and provides a status update

on the Company's development portfolio.

"Our strong first quarter results highlight continued

revenue momentum, led by robust demand across all three indications for Jakafi (ruxolitinib)," stated Herv

Hoppenot, Chief Executive Officer, Incyte. "As we navigate this unprecedented and uncertain time, we have implemented numerous

initiatives as we seek to ensure continuity of patient care. We are continuing to execute on our goals, and we were very pleased

to announce the FDA approval of PemazyreTM (pemigatinib), the first of three potential product approvals that we expect

to announce in 2020. The FDA review of the capmatinib NDA and tafasitamab BLA are proceeding as expected and, following positive

results from our Phase 3 TRuE-AD development program in atopic dermatitis, we are also on track to submit the NDA for ruxolitinib

cream at the end of 2020, all of which positions us for what I expect to be a transformational year."

Commercial, Supply and Clinical & Regulatory Impact

While it is currently not possible to predict the overall long-term

impact of the COVID-19 pandemic on Incyte's business, to-date, there has been no impact on the commercial side of the business,

and Incyte currently has ample commercial and clinical supply of our medicines to meet the needs of patients receiving Incyte's

approved medicines and those participating in global clinical trials. Incyte's manufacturing processes are proceeding as

usual, with increased manufacturing efforts for ruxolitinib in place to respond to the COVID-19 pandemic and study requests. Incyte

continues to move forward with its global clinical trials, and late-stage programs remain broadly on track, although short-term

effects may continue to emerge. For example, while ongoing monitoring of already-enrolled patients is expected to continue, new

patient recruitment in certain clinical studies may be impacted. The impact on clinical trials may also vary by disease state and

by severity of disease, as well as by geography, as some regions are more adversely impacted.

Ruxolitinib and baricitinib as potential therapies for patients

Incyte has initiated a Phase 3 clinical trial (RUXCOVID) to

evaluate the efficacy and safety of ruxolitinib plus standard-of-care (SoC), compared to SoC therapy alone, in patients with COVID-19

associated cytokine storm. The collaborative study is sponsored by Incyte in the United States and by Novartis outside of the United

Incyte is also opening a second Phase 3 clinical trial in the

United States to evaluate the efficacy and safety of ruxolitinib plus SoC, compared to SoC therapy alone, in COVID-19 patients

on mechanical ventilation and who have acute respiratory distress syndrome (ARDS), a type of respiratory failure characterized

by rapid onset of widespread inflammation in the lungs.

Additionally, Incyte has launched an emergency Expanded Access

Program in the United States to allow eligible patients with COVID-19 associated cytokine storm to receive ruxolitinib.

In April, Lilly announced it has entered into an agreement with

the National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health (NIH), to study baricitinib

as an arm in NIAID's Adaptive COVID-19 Treatment Trial. The study will investigate the efficacy and safety of baricitinib as a

potential treatment for hospitalized patients diagnosed with COVID-19 in the US, and Lilly is also planning a study expansion to

include Europe and Asia.

LIMBER - key highlights

Key LIMBER development programs,

including the once-a-day (QD) formulation of ruxolitinib, and the ongoing and planned ruxolitinib combinations with parsaclisib

(PI3K ), PIM, BET and ALK2 are currently on track.

Oncology beyond MPNs - key highlights

In April, the FDA approved Pemazyre, Incyte's selective

fibroblast growth factor receptor (FGFR) inhibitor, for the treatment of adults with previously treated, unresectable locally advanced

or metastatic cholangiocarcinoma with an FGFR2 fusion or other rearrangement as detected by an FDA-approved test. Pemazyre was

reviewed under Breakthrough Therapy designation and granted accelerated approval based on overall response rate and duration of

response. The marketing authorization application (MAA) seeking approval for pemigatinib in Europe is under review by the European

Medicines Agency (EMA).

Delays in data collection and validation, caused by COVID-19

related disruption, mean that data from the FIGHT-201 clinical trial of pemigatinib in patients with bladder cancer are now expected

to be presented at a medical conference in early 2021; all other clinical trials of pemigatinib are currently progressing as expected.

Data from the Phase 3 REACH 2 trial of ruxolitinib versus best

available therapy (BAT) in patients with steroid-refractory acute graft-versus-host disease (GVHD) have been published in The

New England Journal of Medicine and are also expected to be presented at the 46th annual meeting of the European

Society for Blood and Marrow Transplantation (EBMT) in August 30-September 2, 2020 (postponed from March 22-25, 2020). The Phase

3 REACH 3 trial of ruxolitinib versus BAT in patients with steroid-refractory chronic GVHD has completed recruitment and results

are expected in the second half of 2020.

The collaboration and license agreement with MorphoSys for the

development and commercialization of tafasitamab became effective in March. In February, the FDA granted Priority Review for tafasitamab

in combination with lenalidomide for the treatment of relapsed or refractory diffuse large B-cell lymphoma (r/r DLBCL), and set

a PDUFA goal date of August 30, 2020.

Preparations are ongoing to initiate the Phase 3 POD1UM-304

trial of retifanlimab (formerly INCMGA0012) in combination with platinum-based chemotherapy as a first-line treatment for patients

with non-small cell lung cancer (NSCLC). Incyte no longer plans to pursue the Phase 3 POD1UM-301 trial of retifanlimab in combination

with chemoradiation therapy (CRT) in participants with unresectable, Stage III NSCLC.

Inflammation and Autoimmunity (IAI) - key highlights

In April, safety and efficacy data from the two Phase 3 trials

in the TRuE-AD program evaluating ruxolitinib cream in mild-to-moderate atopic dermatitis were presented at the Revolutionizing

Atopic Dermatitis (RAD) virtual symposium. The 44-week long-term safety and efficacy portion of both the TRuE-AD1 and TRuE-AD2

trials are ongoing and the NDA submission is expected before the end of 2020.

The two Phase 3 trials in the TRuE-V pivotal program evaluating

ruxolitinib cream in patients with vitiligo are currently proceeding as planned, and results are expected in 2021.

Discovery and early development - key highlights

Based on emerging data from the FGFR4 inhibitor program, development

of INCB62079 has been discontinued because of insufficient efficacy in the target patient population. Incyte's portfolio

of other earlier-stage clinical candidates is summarized below.

Partnered - key highlights

In March, Incyte and Lilly announced the FDA has granted Breakthrough

Therapy designation for baricitinib for the treatment of alopecia areata, an autoimmune disorder that can cause unpredictable hair

loss on the scalp, face and other areas of the body. In January, Lilly submitted baricitinib for regulatory review in Europe and

Japan as a treatment for patients with moderate-to-severe atopic dermatitis, and has announced plans to submit for approval in

In February, Incyte and Novartis announced that the NDA for

capmatinib, seeking approval in patients with metastatic non-small cell lung cancer (NSCLC) and with a mutation leading to exon

14 skipping as detected by an FDA-approved test, was accepted for Priority Review by the FDA.

2020 First Quarter Financial Results

financial measures presented in this press release for the three months ended March 31, 2020 and 2019 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