Oct 28 (Reuters) - Drugmaker Incyte Corp on

Tuesday raised its annual sales forecast for its blood cancer

treatment Jakafi after robust demand for the drug helped the

company surpass Wall Street estimates for third-quarter revenue

and profit.

However, shares fell 2.4% in premarket trading after the

company said it halted two new drug programs and stopped

developing povorcitinib for chronic spontaneous hives, an itchy

skin condition, citing pipeline prioritization.

"We are not surprised by the program's discontinuation due

to safety concerns for the class," said William Blair analyst

Matt Phipps referring to povorcitinib.

The company now expects annual sales of blood cancer drug

Jakafi in the range of $3.05 to $3.08 billion, compared to its

previous forecast of $3 billion to $3.05 billion.

Sales of Jakafi, the company's flagship treatment for blood

cancers such as myelofibrosis and polycythemia vera, climbed 7%

to $791 million in the quarter ended September 30, from a year

ago. Analysts had expected $780.1 million, as per LSEG compiled

data.

Incyte ( INCY ) agreed to pay Novartis $280 million in May to settle

a royalty dispute related to Jakafi. Starting January 2025,

Novartis will receive a 50% reduction in future royalty rates on

U.S. Jakafi sales as part of the agreement.

As Jakafi is expected to be pressured by potential patent

expirations in 2028, Incyte's ( INCY ) CEO Bill Meury previously outlined

a growth strategy that will focus on accelerating drug

development and prudent capital allocation along with

well-executed M&A.

Wary of a looming patent cliff, Incyte ( INCY ) has been leaning on

sales of Opelzura, its cream for vitiligo and mild-to-moderate

atopic dermatitis, to drive future growth.

Incyte's ( INCY ) other offerings include Zynyz for advanced anal

cancer and Monjuvi for follicular lymphoma.

Sales of Opzelura jumped 35% to $188 million in the reported

quarter, beating estimates of $175.8 million.

On an adjusted basis, Incyte ( INCY ) earned $2.26 per share,

exceeding estimates of $1.66 apiece.

Total revenue came in at $1.37 billion, surpassing estimates

of $1.26 billion.