Incyte Reports 2020 Second Quarter Financial Results and Provides Updates on Key Clinical Programs - Total product and royalty revenues of $593 million (+16% vs Q2 2019) for the quarter ended

Incyte Reports 2020 Second Quarter Financial

and Provides Updates on Key Clinical Programs

Conference Call and Webcast Scheduled Today

WILMINGTON, Del. - August

4, 2020 - Incyte (Nasdaq: INCY) today reports 2020 second quarter financial results, and provides a status update

on the Company's development portfolio.

"We continue to execute

successfully across all aspects of our business," stated Herv Hoppenot, Chief Executive Officer, Incyte. "Demand

for Jakafi (ruxolitinib) is robust and the recent approval of Pemazyre (pemigatinib), as well as

those of Monjuvi (tafasitamab-cxix) with MorphoSys and TabrectaTM (capmatinib) with Novartis, add to

our momentum. In addition, clinical updates from the tafasitamab and LIMBER programs at the recent EHA congress, the successful

outcome of REACH3, and our plan to submit an NDA seeking approval for ruxolitinib cream at the end of this year, further illustrate

the opportunities within our portfolio to drive additional diversification and growth."

LIMBER - key highlights

Positive proof-of-concept data for parsaclisib in combination

with ruxolitinib in myelofibrosis (MF) patients with an inadequate response to ruxolitinib monotherapy were presented at the virtual

25th Congress of the European Hematology Association (EHA). Incyte plans to initiate pivotal trials of the combination

of ruxolitinib and parsaclisib as both first-line therapy for MF patients and in MF patients with an inadequate response to ruxolitinib

Monotherapy treatment cohorts in the trials of INCB57643 (BET)

and INCB00928 (ALK2) in patients with myelofibrosis are being opened for recruitment, and these are expected to be followed by

the initiation of ruxolitinib combination trials with both agents. Further development of the combination of INCB53914 (PIM) plus

ruxolitinib has been discontinued.

Oncology beyond MPNs - key highlights

In July, the FDA granted approval for Monjuvi

(tafasitamab-cxix), an Fc-engineered anti-CD19 antibody, in combination with lenalidomide for the treatment of adult patients with

relapsed or refractory diffuse large B-cell lymphoma (DLBCL) and who are not eligible for autologous stem cell transplant (ASCT).

Monjuvi was reviewed under Priority Review and granted accelerated approval based on overall response rate data from the L-MIND

trial of tafasitamab in combination with lenalidomide.

Incyte and MorphoSys will co-commercialize Monjuvi in the U.S.

Medical and commercial teams from both companies were ready for the early approval and launch activities are already underway,

including engagements with prescribing physicians and payors.

In May, Incyte and MorphoSys announced the validation of the

European Marketing Authorization Application (MAA) for tafasitamab. Incyte has exclusive development and commercialization rights

to tafasitamab outside of the U.S.

Updated results from the ongoing Phase 2 L-MIND study investigating

the combination of tafasitamab and lenalidomide in patients with relapsed or refractory DLBCL (r/r DLBCL) were reported at EHA.

The results were consistent with the primary analysis and those included in the U.S. prescribing information, and confirmed the

durability of the response and measurements of overall survival of tafasitamab in combination with lenalidomide followed by tafasitamab

monotherapy in ASCT-ineligible patients with r/r DLBCL.

In July, Incyte and Novartis

announced that the REACH3 study, evaluating ruxolitinib in patients with steroid-refractory chronic graft-versus-host disease (GVHD),

met its primary endpoint of overall response rate (ORR) at Month 6 and both key secondary endpoints (modified Lee symptom scale

and failure-free survival). No new safety signals were observed, and the ruxolitinib safety profile in REACH3 was consistent with

that seen in previously reported studies. REACH3 is the largest randomized trial ever conducted in the steroid-refractory chronic

GVHD setting. Data are being prepared for presentation at an upcoming medical meeting and for regulatory submission.

Inflammation and Autoimmunity (IAI) - key highlights

The 44-week long-term safety and efficacy portions of both the

TRuE-AD1 and TRuE-AD2 Phase 3 trials of ruxolitinib cream in patients with mild-to-moderate atopic dermatitis are proceeding as

planned, and the NDA submission is expected at the end of 2020.

Data from the randomized Phase 2 trial of ruxolitinib cream

in patients with vitiligo were recently published in The Lancet. The two randomized Phase 3 trials in the TRuE-V pivotal program

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

Discovery and early development - key highlights

Based on emerging data from the LSD1 inhibitor program, development

of INCB59872 has been discontinued. Incyte's portfolio of other earlier-stage clinical candidates is summarized below.

Potential therapies for patients with COVID-19

There are several ongoing studies of ruxolitinib, conducted

by Incyte alone or in collaboration with Novartis, and of baricitinib, conducted by Lilly, in patients with COVID-19. Initial results

from these trials are expected in the second half of 2020.

Incyte and Lilly have amended their agreement to enable Lilly

to move rapidly in the development and commercialization of baricitinib as a potential therapy for patients with COVID-19, moving

financial obligations post-approval.

Partnered - key highlights

In May, Incyte and Novartis announced the FDA approval of TabrectaTM

(capmatinib) for the treatment of adult patients with metastatic non-small cell lung cancer (NSCLC) whose tumors have a mutation

that leads to MET exon 14 skipping (METex14) as detected by an FDA-approved test. Tabrecta was reviewed under Priority Review and

granted accelerated approval based on Phase 2 data in first-line and previously treated patients with METex14 mutated NSCLC.

In June, the Japanese Ministry of Health, Labour and Welfare

(MHLW) approved TabrectaTM (capmatinib) for METex14 mutation-positive advanced and/or recurrent unresectable NSCLC.

2020 Second Quarter Financial Results

financial measures presented in this press release for the three and six months ended June 30, 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

Product and Royalty Revenues

Product and royalty revenues for the three and six months ended June 30, 2020 increased 16% and 20%, respectively, over the prior

year comparative periods primarily as a result of increases in Jakafi net product revenues and higher product royalty revenues

from Jakavi and Olumiant. Jakafi net product revenues for the three and six months ended June 30, 2020 increased 16% and 19%, respectively,

over the prior year comparative periods, primarily driven by growth in patient demand across all indications.

cost of product revenues excludes the amortization of licensed intellectual property for Iclusig relating to the acquisition of

the European business of ARIAD Pharmaceuticals, Inc. and the cost of stock-based compensation.

2. Non-GAAP research and development expenses exclude

the cost of stock-based compensation.