Lilly gains global rights to Incyte's novel JAK1/JAK2 inhibitor for $90 million upfront and up to $665 million more; deal with PDL

US firm Incyte saw its shares rise 5% to $8.92 after announcing it had entered into an exclusive worldwide license and collaboration deal with drug major Eli Lilly for the development and commercialization of its oral JAK1/JAK2 inhibitor, INCB28050, and certain follow on compounds, for inflammatory and autoimmune diseases. The lead compound, INCB28050, is currently being studied in a six-month dose-ranging Phase II trial for rheumatoid arthritis.

Under the terms of the agreement, Lilly will receive worldwide rights to develop and commercialize INCB28050 as an oral treatment for all inflammatory conditions. In exchange, Incyte will receive an initial $90 million and is eligible for up to $665 million in additional potential development, regulatory, and commercialization milestones, as well as tiered, double-digit royalty payments on future global sales with rates ranging up to 20% if a product is successfully commercialized.

"This new alliance with Incyte reinforces Lilly's commitment to expand our presence in inflammation and autoimmunity through the development of a new class of oral anti-inflammatory therapies," said Eiry Roberts, Lilly's vice president for autoimmune product development.