** Shares of drugmaker Incyte INCY.O rise 2% to $100 premarket

** Says it settled dispute with U.S. government over Medicaid rebates tied to Opzelura, co's skin cream for inflammatory conditions

** Co says authorities will not treat Opzelura as linked to blood disorder drug Jakafi, avoiding higher rebate payments

** Says to record one-time, non-cash gain of about $246 mln in Q2 from reversing earlier charges

** Expects improved profit margins for Opzelura going forward

** Says to update financial outlook at next earnings release

** As of last close, stock up ~83% YTD