Hope could be on the horizon for Incyte (INCY) - Get Report , which saw shares drop as much as 3.4% Tuesday despite reporting better-than-expected earnings and an increase in the price of its lead drug.

The Wilmington, Del.-based company said it would be increasing the price of Jakafi, which is used to treat rare blood and bone marrow cancers, by about 5%. The drug saw a 46% increase in revenues year-over-year, raking in $208 million in the second quarter of 2016, as compared to $142 million during the same period in 2015.

The company reported total revenues of $246.3 million, which beat consensus estimates of $231 million.

"We continue to expect Jakafi's best days to be in front of it, since we expect the majority of the growth to come from the much larger PV market, where the drug was launched in late 2014," analyst Simos Simeonidis of RBC Capital Markets wrote in a note.

Despite positive comments from CEO Hervé Hoppenot, the former president of Novartis' (NVS) - Get Report oncology division, Incyte's trading price dipped 3.4% Tuesday to $85.01 per share after the company reported earnings per share of 18 cents per share, much better than consensus estimates of a loss of 2 cents.

Despite the earnings beat, Incyte shares likely fell thanks to news that it will be increasing its spending on research and development. The company noted during its earnings call that it cut its yearly spending on R&D from a range of $635 million to $660 million to a range of $620 million to $630 million.

During its earnings call, Incyte, which has a market cap of $15.96 billion, provided little to no update on its May acquisition of ARIAD Pharmaceuticals' (ARIA) Luxembourg division.

The company agreed to acquire the European division from ARIAD Pharmaceuticals for $140 million in a cash transaction on May 9. The transaction granted Incyte an exclusive license to develop and commercialize Iclusig in the European Union and 22 other countries, including Switzerland, Norway, Turkey, Israel and Russia.

Iclusig is ARIAD's main drug that treats a slowly progressing, rare type of blood cancer that begins in the bone marrow.

As a part of the deal, Jonathan Dickinson joined the company as senior vice president and general manager of its European operations. Dickinson previously worked at ARIAD as its general manager of the European operations.