Incyte Corporation (INCY) stock plunged around 9.93% in after-hours trading on Monday, following the release of its fourth-quarter 2024 earnings results. The biopharmaceutical company reported adjusted earnings per share (EPS) of $1.43, missing analysts' expectations of $1.56.

While Incyte posted revenue of $1.18 billion for the quarter, beating estimates of $1.14 billion, the earnings miss and weaker-than-expected guidance for its key dermatology drug Opzelura appeared to weigh heavily on investor sentiment.

Incyte's lead product Jakafi, used to treat rare blood cancers and graft-versus-host disease, continued to perform well, with net sales rising 11% year-over-year to $773.1 million. However, the company's guidance for Opzelura, which is approved for atopic dermatitis and vitiligo, fell short of analysts' expectations. Incyte forecasted Opzelura sales in the range of $630 million to $670 million for 2025, below the consensus estimate of $671 million.

The disappointing Opzelura guidance raised concerns among analysts about the drug's growth trajectory, particularly in the vitiligo indication. Incyte's overall revenue growth momentum and ability to manage rising operating expenses were also called into question, as the company faces the challenge of maintaining profitability while investing in its pipeline.