I seem to remember that INCY has afair amount of debt that need refinancing and wonder how they will accomplish that feat given their sub-par role out of new drug? additionally,INCY is not shy about asking for help from State of Delaware for cash to say? Boy the Board of Directors has let the management of this company run away with the store...
You sure manage to surround a good question with a mountain of #$%$.
$10MM of cheap funding from Pfizer expires in each of 2013 and 2014. The interesting issue is $400MM of 4.75% convertible senior notes, due Oct 2015. All of these are convertible into common stock at effective prices substantially below the present market price ($8.78 for the big issue). In addition, Incyte has about $10MM of lease commitments. It is likely that at least half of the stock represented by the convertibles is hedged by short sales, so the potential dilution is substantially less than the 35% or so that it would seem on the surface to threaten.
It appears likely that Incyte will have annual Jakafi sales greater than $500MM (this may be under threat from other drugs by then, but they will not yet have made inroads), close to another $100MM from Jakavi and be about to participate at 25% in a $2Bln arthritis drug come Oct 2015. Refinancing should be feasible.