Deciphera Pharmaceuticals Reports Record Annual Revenue for 2023, Driven by QINLOCK
Deciphera Pharmaceuticals, a clinical-stage biotechnology company, has announced its financial results for the fourth quarter and full year of 2023, highlighting a record annual revenue driven by the robust performance of its flagship drug, QINLOCK. The company has reported that its revenue increased by 24% to $244.4 million in 2023, primarily due to the growth in QINLOCK net product revenue. Additionally, Deciphera has shared its strategic priorities for 2024, which include continued QINLOCK sales growth and the advancement of its clinical pipeline. The company expects QINLOCK and Vimseltinib to reach over $1 billion in peak global revenue.
Furthermore, a strong cash position of $352 million extends the company's cash runway into the second half of 2026. The company is also preparing for the potential launch of Vimseltinib, with a focus on engaging with HCA (NYSE:) agencies and submitting an MAA in Q3 2024.
Deciphera is actively pursuing label expansion opportunities for QINLOCK and Vimseltinib, with a Phase 3 INSIGHT study for QINLOCK label expansion ongoing and a plan to initiate a Phase 2 study for Vimseltinib in chronic GVHD and submit an IND for DCC-3009 underway. The company expects to select a recommended Phase 2 dose later this year and move to its first expansion cohort for DCC-3116, its ULK inhibitor. Meanwhile, the company plans to initiate a Phase 1 study for DCC-3084, its pan-RAF inhibitor, in the first half of 2024.
The company acknowledged the potential for Vimseltinib's use in earlier lines of treatment but stated that it's too early for specific plans. Deciphera is excited about the proof-of-concept study for Vimseltinib in chronic GVHD. The average duration of therapy for QINLOCK is increasing, with expectations for continued growth, and seasonality in revenues is expected to follow patterns similar to previous years.
Moreover, Deciphera has also provided an update on its financial performance, with revenue increasing by 24% to $244.4 million in 2023, driven by the robust demand for QINLOCK. The company's cash position remains strong, with $352 million in cash and a cash runway extending into the second half of 2026. The INTRIGUE study showed QINLOCK's significant benefits, and an NDA for Vimseltinib is expected in Q2 2024. Plans to initiate a Phase 2 study for Vimseltinib in chronic GVHD and submit an IND for DCC-3009 are underway. The company's R&D expenses for Q4 2023 were $58.6 million, while SG&A expenses were $39.1 million, and the company has acknowledged that unpredictability in revenue growth from quarter to quarter is likely to occur.
Overall, Deciphera Pharmaceuticals has outlined a robust growth trajectory for its key drug, QINLOCK, and the development of Vimseltinib, and the company remains committed to expanding its market presence and addressing unmet medical needs globally. With strategic initiatives in place and a strong financial foundation, Deciphera is poised for continued success in the years ahead. However, the company has acknowledged challenges in predicting new market openings due to varying reimbursement processes and timelines and the potential quarter-over-quarter variability in revenue growth.
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