Incyte Corporation announced it has reached an agreement with the Centers for Medicare & Medicaid Services (CMS) to resolve litigation over Medicaid rebate rules for its drug Opzelura® cream. Under the settlement, CMS agreed not to treat Opzelura as a line extension of Jakafi®, favorably impacting the drug's rebate obligations and leading to a significant one-time benefit for the company.
Key Details
- Financial Impact: The company expects to record a one-time, non-cash benefit of approximately $246 million in the second quarter ending June 30, 2026, from the reversal of a previously accrued liability.
- Agreement Terms: In exchange for CMS not applying the line extension regulation to Opzelura, Incyte has withdrawn its lawsuit challenging the rules.
- Future Outlook: The settlement is expected to improve Opzelura's gross-to-net sales going forward. Incyte plans to update its financial guidance during its next scheduled earnings release.