WILMINGTON, Del. - Incyte (NASDAQ:INCY) Corporation (NASDAQ:INCY), a global biopharmaceutical company, has announced the preliminary results of its modified Dutch auction tender offer, which concluded at midnight on Monday. According to the preliminary count by Computershare Trust Company, N.A., the depositary for the tender offer, approximately 29.8 million shares of Incyte's common stock were properly tendered and not properly withdrawn at or below the purchase price of $60.00 per share.
The company expects to acquire roughly 27.9 million shares at $60.00 per share, totaling approximately $1.672 billion, excluding related fees and expenses. This acquisition represents about 12.4 percent of Incyte’s outstanding common stock as of June 7, 2024. The preliminary proration factor for the tender offer is approximately 93.4 percent.
In addition, Incyte entered into a separate agreement with Julian C. Baker, Felix J. Baker, and their affiliated entities, including those advised by Baker Bros. Advisors LP, on May 12, 2024. Under this agreement, the Baker Entities will sell a proportionate number of shares back to the company at the same price per share paid in the tender offer, maintaining their relative ownership percentage.
This will result in Incyte repurchasing a total of approximately 33.3 million shares for around $2.0 billion, which equates to roughly 14.8 percent of the company's total outstanding shares.
The final number of shares to be repurchased and the final price per share will be confirmed following the guaranteed delivery period and the depositary's completion of the confirmation process. Incyte plans to fund these transactions using its available cash reserves.
Goldman Sachs (NYSE:GS) & Co. LLC is acting as the dealer manager for the tender offer, while D.F. King & Co., Inc. is the information agent. Shareholders seeking additional information about the tender offer may contact D.F. King & Co., Inc.
The information in this article is based on a press release statement.
In other recent news, Incyte's PDUFA date for axatilimab in chronic graft-versus-host disease (cGVHD) is set for late August 2024, with high expectations for FDA approval based on a 63.5% overall response rate in trials.
In addition, the company's acquisition of Escient Pharmaceuticals has added two clinical-stage molecules targeting MRGPRs to its portfolio, with Phase 2 trials underway and proof-of-concept data expected by early 2025. There have been promising results for Opzelura in treating mild hidradenitis suppurativa (HS) and povorcitinib for prurigo nodularis (PN), both meeting primary endpoints in their respective trials.
Incyte has also announced the acquisition of two new buildings in downtown Wilmington, Delaware, aiming to consolidate U.S.-based teams and support future growth.
Deutsche Bank (ETR:DBKGn) has initiated coverage on Incyte with a Hold rating and a price target of $55.00 per share, while RBC Capital adjusted its outlook by reducing the price target from $65.00 to $60.00.
InvestingPro Insights
Incyte Corporation's (NASDAQ:INCY) recent tender offer reflects its confidence in the company's financial stability and future prospects. Supporting this sentiment, InvestingPro data shows Incyte with a robust market capitalization of $13.36 billion. The company's P/E ratio stands at 17.8, indicating a valuation that is potentially attractive when aligned with its near-term earnings growth. Moreover, Incyte's revenue for the last twelve months as of Q1 2024 reached approximately $3.77 billion, marking a growth of 8.58%, a testament to the company's ability to increase its financial performance.
From an operational standpoint, Incyte's gross profit margin is impressive at 49.42%, demonstrating the company's efficiency in managing its cost of goods sold and maintaining profitability. Additionally, the company's operating income margin of 18.92% for the same period underscores its operational effectiveness.
An InvestingPro Tip worth noting is that Incyte holds more cash than debt on its balance sheet, suggesting a strong liquidity position that enables it to fund transactions like the recent tender offer internally. Furthermore, the company's liquid assets exceed its short-term obligations, which aligns with its strategy to manage its capital structure prudently. Shareholders may also find reassurance in the fact that Incyte is profitable over the last twelve months and analysts predict it will remain profitable this year.
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