Incyte Reports 2020 Third Quarter Financial Results and Provides Updates on Key Clinical Programs - Total product and royalty revenues of $621 million (+16% vs Q3 2019) for the quarter ended

Incyte Reports 2020 Third Quarter Financial

and Provides Updates on Key Clinical Programs

Conference Call and Webcast Scheduled Today

WILMINGTON, Del. - November 5, 2020 - Incyte

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

"We are pleased to report another strong quarter for Incyte,

with continued strength across all Jakafi (ruxolitinib) indications, good momentum behind the U.S. launches of

both Monjuvi (tafasitamab-cxix) and Pemazyre (pemigatinib), as well as increasing royalty contributions

from our partnered medicines globally," stated Herv Hoppenot, Chief Executive Officer, Incyte. "In addition,

we have now established Incyte Dermatology as a new franchise for Incyte in the U.S., and we are on track to submit the NDA for

ruxolitinib cream at the end of this year which, by using our priority review voucher, could lead to an FDA decision in the middle

LIMBER - key highlights

Two pivotal trials are being initiated to evaluate the combination

of ruxolitinib and parsaclisib as both first-line therapy for myelofibrosis (MF) patients and in MF patients with an inadequate

response to ruxolitinib monotherapy.

The Phase 2 monotherapy trial of INCB57643 (BET) in patients

with refractory myelofibrosis are now recruiting and the Phase 2 monotherapy trial of INCB00928 (ALK2) in patients with myelofibrosis

is being opened. Both programs are expected to proceed to ruxolitinib combination trials upon completion of monotherapy cohorts.

Oncology beyond MPNs - key highlights

In August, Monjuvi (tafasitamab-cxix) in combination

with lenalidomide was included in the latest National Comprehensive Cancer Network (NCCN) Clinical Practice Guidelines in Oncology

for B-cell Lymphomas with a Category 2A designation as an option for the treatment of adult patients with relapsed or refractory

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

The European Marketing Authorization Application (MAA) for tafasitamab

as a treatment for patients with r/r DLBCL is under review. Incyte has exclusive development and commercialization rights to tafasitamab

Incyte and MorphoSys plan to further broaden the development

program of tafasitamab in other B-cell malignancies. Multiple trials are in preparation, including Phase 3 trials in both first

line DLBCL and relapsed/refractory follicular lymphoma, as well as a proof-of-concept trial of tafasitamab plus parsaclisib (PI3K ).

In September, initial results from the Phase 2 POD1UM-202

trial of retifanlimab in previously treated patients with advanced squamous cell anal carcinoma (SCAC) who

have progressed following standard platinum-based chemotherapy were presented at the European Society for Medical Oncology

(ESMO) annual meeting. The Phase 3 POD1UM-303 trial of retifanlimab in combination with platinum-based chemotherapy as a

first-line treatment for patients with SCAC is open for recruitment.

Given the rapidly evolving treatment landscape for bladder cancer

and recent regulatory feedback, Incyte is reevaluating its development strategy for pemigatinib in bladder cancer. As part of that

reevaluation, new patient recruitment into FIGHT-205, which is assessing pemigatinib in cisplatin-ineligible bladder cancer patients

whose tumors express FGFR3 mutation or rearrangement, has been stopped, and Incyte no longer intends to use data from FIGHT-201

to seek accelerated approval for pemigatinib in patients with previously treated bladder cancer whose tumors express FGFR3 mutation

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

SCAC = squamous cell anal carcinoma

Inflammation and Autoimmunity (IAI) - key highlights

Incyte Dermatology has been established as a new franchise for

Incyte in the U.S., which will include dedicated teams for the development and commercialization of Incyte's dermatology

The NDA for ruxolitinib cream in atopic dermatitis is on track

for submission at the end of 2020. Incyte has acquired a priority review voucher, which it intends to use to accelerate the timeline

Pooled results from the TRuE-AD studies were presented at the

European Academy of Dermatology and Venereology (EADV) Congress. Ruxolitinib cream demonstrated clinically meaningful improvements

in patient-reported quality of life assessments, such as the PROMIS (patient-reported outcomes measurement information system)

sleep disturbance (8b) score, as well as substantial and sustained itch reduction, reinforcing its potential as an important treatment

option for atopic dermatitis patients.

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

evaluating ruxolitinib cream in patients with vitiligo are fully recruited, with results expected in 2021.

Initial clinical results from INCB54707, a JAK1 selective inhibitor,

were presented in October. INCB54707 demonstrated preliminary efficacy, improved quality of life (QoL) including a reduction in

skin pain and a tolerable safety profile in patients with moderate-to-severe hidradenitis suppurativa (HS). A Phase 2b, randomized,

double-blind, placebo-controlled trial evaluating INCB54707 in HS is ongoing.

Discovery and early development - key highlights

Incyte's portfolio of other earlier-stage clinical candidates

is summarized below.

Clinical translational data from the ongoing proof-of-concept

trial of INCB86550, Incyte's first-in-class oral small molecule inhibitor of PD-L1, have been accepted for presentation at

the 2020 Society for Immunotherapy for Cancer (SITC) meeting. As previously disclosed, initial clinical efficacy and safety data

from this trial are expected to be presented in 2021, once these data mature.

Potential therapies for patients with COVID-19

Patient recruitment into the Phase 3 RUXCOVID study evaluating

ruxolitinib versus standard-of-care in hospitalized patients with COVID-19 associated cytokine storm has been completed, and topline

results are expected to be available before the end of 2020.

In September, Incyte and Eli Lilly announced initial results

from the baricitinib arm of the National Institute of Allergy and Infectious Diseases (NIAID) Adaptive COVID-19 Treatment Trial

(ACTT-2), where baricitinib in combination with remdesivir reduced the time to recovery (primary endpoint) in comparison with remdesivir

Additional data announced in October showed that baricitinib

plus remdesivir resulted in a numerical decrease in mortality through Day 29 compared to remdesivir alone, with a more pronounced

reduction seen in more severely ill patients.

Partnered - key highlights

In October, Lilly announced that the European Commission granted

marketing authorization for Olumiant (baricitinib) 4mg and 2mg tablets in Europe for the treatment of adults with

moderate to severe atopic dermatitis (AD) who are candidates for systemic therapy, becoming the first JAK-inhibitor indicated to

help treat patients with AD.

In September, Incyte and Novartis announced that GEOMETRY mono-1

results of TabrectaTM (capmatinib) in patients with METex14 metastatic non-small cell lung cancer (NSCLC) were published

in The New England Journal of Medicine.

2020 Third Quarter Financial Results

financial measures presented in this press release for the three and nine months ended September 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