Incyte Reports 2020 Fourth Quarter and Year-End Financial Results, Provides 2021 Financial Guidance and Updates on Key Clinical Programs - Total FY revenues of $2.67 billion (+24% y/y); total FY pro

Incyte Reports 2020 Fourth Quarter and

Year-End Financial Results,

Provides 2021 Financial Guidance and Updates on Key Clinical Programs

Conference Call and Webcast Scheduled Today

WILMINGTON, Del. - February 9, 2021 - Incyte

(Nasdaq: INCY) today reports 2020 fourth quarter and full year financial results, and provides a status update on the Company's

development portfolio.

"Our team achieved many important accomplishments in the

past year. Revenue growth was strong, driven by demand for Jakafi (ruxolitinib), and the launches of Monjuvi

(tafasitamab-cxix) and Pemazyre (pemigatinib) continue to gain momentum. During 2020, we also announced positive

results across multiple late-stage programs, including the pivotal trials of ruxolitinib in chronic GVHD, ruxolitinib cream in

atopic dermatitis, parsaclisib in NHL, and retifanlimab in SCAC," stated Herv Hoppenot, Chief Executive Officer,

Incyte. "During 2021, we expect regulatory decisions on seven applications seeking approval, including four in the U.S, two

in Europe and one in Japan, and we are working towards the potential U.S. launch of ruxolitinib cream, which we expect to be approved

by the FDA in the middle of the year."

MPNs and GVHD - key highlights

Our LIMBER development program, to improve patient outcomes

in MPNs and GHVD, is progressing well.

The two Phase 3 trials of ruxolitinib in combination with parsaclisib

are both underway, evaluating the combination versus monotherapy ruxolitinib as a first-line therapy for patients with myelofibrosis

(MF) (LIMBER-313) and as a therapy for MF patients with a suboptimal response to ruxolitinib monotherapy (LIMBER-304).

Monotherapy trials of INCB57643 (BET) and INCB00928 (ALK2) are

underway, and are expected to lead to proof-of-concept combination trials of both agents with ruxolitinib in patients with myelofibrosis.

A monotherapy trial of itacitinib (JAK1) in patients previously treated with ruxolitinib is ongoing.

In December 2020, Incyte and Cellenkos announced a development

collaboration to investigate the combination of ruxolitinib and CK0804, Cellenkos' cryopreserved CXCR4 enriched, allogeneic,

umbilical cord blood-derived T-regulatory cells, in patients with myelofibrosis. In addition, Incyte obtained an exclusive option

to acquire sole rights to develop and commercialize CK0804, and genetically-modified variants of CK0804, in benign and malignant

hematology indications.

The sNDA seeking approval of Jakafi in steroid-refractory chronic

graft-versus-host disease (GVHD) has been submitted, based on data from the successful results of the REACH3 trial, which were

presented at ASH 2020.

Other Hematology/Oncology - key highlights

Momentum is strong behind the U.S. launch of Monjuvi (tafasitamab-cxix),

with good uptake in both academic and community settings and illustrated by the market share gained in the first several months

The Phase 3 inMIND trial evaluating tafasitamab plus lenalidomide

and rituximab (R-squared) versus R-squared in patients with relapsed or refractory follicular or marginal zone lymphoma is open

for recruitment, and the Phase 3 frontMIND trial of tafasitamab plus lenalidomide and R-CHOP versus R-CHOP as a first-line treatment

in patients with DLBCL is expected to open in the coming months.

The U.S. launch of Pemazyre (pemigatinib) has been successful

and, in January, Incyte announced that the European Medicines Agency's (EMA) Committee for Medicinal Products for Human Use (CHMP)

issued a positive opinion recommending the conditional marketing authorization of pemigatinib for the treatment of adults with

unresectable locally advanced or metastatic cholangiocarcinoma with an FGFR2 fusion or rearrangement that is relapsed or refractory,

after at least one line of systemic therapy.

In December 2020, data from three ongoing Phase 2 studies evaluating

parsaclisib for the treatment of patients with relapsed or refractory follicular (CITADEL-203), marginal zone (CITADEL-204) and

mantle cell (CITADEL-205) lymphomas were presented at ASH 2020. Data from the CITADEL program are expected to form the basis of

an NDA seeking FDA approval of parsaclisib, which is expected to be submitted in the second half of 2021.

In January 2021, Incyte announced that the FDA had accepted

for Priority Review its Biologics License Application (BLA) for retifanlimab as a treatment for previously treated patients with

advanced squamous cell anal carcinoma (SCAC) who have progressed following standard platinum-based chemotherapy. The BLA submission

was based on data from the Phase 2 POD1UM-202 trial evaluating retifanlimab in previously treated patients with advanced SCAC who

have progressed following standard platinum-based chemotherapy; the Phase 3 POD1UM-303 trial in patients with SCAC is underway.

CCA = cholangiocarcinoma; DLBCL = diffuse large B-cell lymphoma;

SCAC = squamous cell anal carcinoma; FL = follicular lymphoma; MZL = marginal zone lymphoma

Incyte's emerging clinical candidates in hematology/oncology

include INCB86550, the first in a series of selective oral inhibitors of PD-L1; INCB81776, a dual AXL/MER inhibitor; INCB106385,

an adenosine (A2A/A2B) inhibitor and, via a collaboration with Merus, MCLA-145, a PD-L1xCD137 bispecific

Inflammation and Autoimmunity (IAI) - key highlights

As planned, the NDA seeking approval of ruxolitinib cream as

a treatment for patients with atopic dermatitis was submitted to the FDA late in the fourth quarter of 2020, including use of the

previously acquired priority review voucher (PRV). The use of the PRV is expected to accelerate the time to an FDA decision.

Recruitment has been completed in both Phase 3 trials in the

TRuE-V development program evaluating ruxolitinib cream as a treatment for patients with vitiligo, and topline results are expected

to be announced in the first half of 2021. If successful, data from TRuE-V are expected to form the basis of an sNDA seeking approval

of ruxolitinib cream as a treatment for patients with vitiligo, which would be submitted as soon as practicable after the FDA decision

on the atopic dermatitis NDA.

Partnered - key highlights

In December 2020, Incyte and Lilly announced that Olumiant had

been approved in Japan as a treatment of patients with atopic dermatitis who have inadequate response to conventional therapies.

Potential therapies for patients with COVID-19

In November 2020, Incyte and Lilly announced that the U.S. Food

and Drug Administration (FDA) issued an Emergency Use Authorization (EUA) for the distribution and emergency use of baricitinib

to be used in combination with remdesivir in hospitalized adult and pediatric patients two years of age or older with suspected

or laboratory confirmed COVID-19 who require supplemental oxygen, invasive mechanical ventilation, or extracorporeal membrane oxygenation.

In December 2020, the New England Journal of Medicine

published peer-reviewed results from the Adaptive COVID-19 Treatment Trial (ACTT-2) sponsored by the National Institute of Allergy

and Infectious Diseases (NIAID), part of the

National Institutes of Health (NIH). The Phase 3 study included

1,033 patients from 67 trial sites in eight countries. These results supported the EUA issued by the FDA.

1. Worldwide rights to baricitinib licensed to Lilly: approved as Olumiant in multiple territories globally for certain patients with

moderate-to-severe rheumatoid arthritis; approved as Olumiant in EU and Japan for certain patients with atopic dermatitis

2020 Fourth Quarter and Year-End Financial Results

financial measures presented in this press release for the quarter and year ended December 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

information is not prepared under a comprehensive set of accounting rules and

should only be used in conjunction with and to supplement Incyte's operating results as reported under GAAP. Non-GAAP measures

may be defined and calculated differently by other companies in our industry.

Financial Highlights