Incyte Corporation (INCY) has reported 83.92 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $8.87 million, or $0.05 a share in the quarter, compared with $55.18 million, or $0.29 a share for the same period last year.

Revenue during the quarter surged 33.88 percent to $326.50 million from $243.88 million in the previous year period. Gross margin for the quarter contracted 203 basis points over the previous year period to 93.99 percent. Total expenses were 87.11 percent of quarterly revenues, up from 73.31 percent for the same period last year. That has resulted in a contraction of 1380 basis points in operating margin to 12.89 percent.

Operating income for the quarter was $42.08 million, compared with $65.08 million in the previous year period.

"We have had a very productive year at Incyte, during which we expanded our geographic footprint to include Europe and further advanced our clinical portfolio, including the recently announced expansion of the epacadostat development program," stated Hervé Hoppenot, Incyte's chief executive officer.

Debt moves up
Incyte Corporation has witnessed an increase in total debt over the last one year. It stood at $651.48 million as on Dec. 31, 2016, up 5.10 percent or $31.59 million from $619.89 million on Dec. 31, 2015. Total debt was 39.76 percent of total assets as on Dec. 31, 2016, compared with 61.53 percent on Dec. 31, 2015. Debt to equity ratio was at 1.55 as on Dec. 31, 2016, down from 3.62 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 4.44 for the quarter from 6.37 for the same period last year.