Bronstein, Gewirtz & Grossman, LLC Announces Investigation Of Incyte Corporation

Bronstein, Gewirtz & Grossman, LLC announced that it is investigating potential claims on behalf of purchasers of the securities of Incyte Corporation concerning potential violations of federal securities laws and breaches of fiduciary duty by the Company and certain of its officers. On August 2, 2012, Shares of Incyte fell $5.35 or approximately 21% to close at $19.57 after the Company changed the way it recognizes revenue, creating uncertainty around the sales forecast for its key bone marrow disease drug. The Company, which posted a quarterly profit for the first time in six quarters, reported strong sales of the drug Jakafi in the second quarter, but said it was adopting a sell-in method for revenue recognition. With the sell-in method, the Company will recognize revenue when its product is received by the pharmacy, as opposed to the sell-through method, where a sale is clocked only when the pharmacy fills a prescription for a patient. The Company estimates full-year sales of between $120 million to $135 million for Jakafi. One analyst said "The outlook was not very clear cut and this is getting reflected in the stock.' He went on to say, " There was a lot of confusion around the guidance and what was built in to the guidance, like what kind of growth to expect going forward, and what the growth trajectory for Jakafi would be like quarter-over-quarter.'