Novartis, Incyte in potential $1.3B drug-licensing deal
Novartis, Incyte in potential $1.3B drug-licensing deal
Novartis, Incyte in potential $1.3B drug-licensing deal
Incyte licenses myelofibrosis and cancer treatments to Novartis in deal that could top $1.3B
Drug developer Incyte Corp. on Wednesday licensed two potential drugs, including a treatment for myelofibrosis, to Swiss drugmaker Novartis AG In a deal that could be worth more than $1.3 billion.
Novartis and Incyte will team up to develop and market INCB18424, which is currently in late stage testing as a treatment for the bone marrow disease myelofibrosis. Incyte will have the U.S. rights to the drug.
Novartis will have full worldwide rights to INCB28060, an experimental cancer drug that is about to go into human testing.
Incyte, based in Wilmington, Del., is getting an upfront payment of $150 million, along with a $60 million milestone payment for the start of late stage testing of INCB18424 in Europe. Novartis could make about $1.1 billion in other payments if the drug reaches sales and development milestones.
Incyte also will get royalty payments of more than 10 percent on sales.
Myelofibrosis can cause bone marrow failure, spleen swelling, and other health problems.
Novartis will have the right to develop oral versions of INCB19424 for blood diseases and cancers. Incyte is testing a topical version of the drug as a treatment for psoriasis and rheumatoid arthritis.
Novartis will also pay royalties on sales of INCB28060 if that drug is approved.
In morning trading, Incyte stock rose 56 cents, or 7.3 percent, to $8.28. The stock earlier traded at $8.64, eclipsing a 52-week high of $8.32 set Nov. 17.
Shares of Novartis rose 44 cents to $55.74. They earlier reached a 52-week high of $55.87, topping a previous peak of $55.36 set Tuesday.
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