Novartis is strengthening its oncology pipeline through a licensing deal for two compounds with Incyte potentially worth $1.1 billion. Under the terms of the agreement, Novartis is paying Incyte $150 million upfront for rights outside of the United States to commercialize Incyte's treatment for myelofibrosis, a serious bone marrow disorder that disrupts the body's normal production of blood cells. That’s on top of the $60 million Novartis will pay for the initiation of a European late-stage trial for the drug, which began in July.

 

Deleware-based Incyte will retain exclusive rights for the development and commercialization of its experimental drug INCB18424 in the United States, where it is currently in a late-stage trial. Novartis also secured global commercialization rights for a second experimental drug, the oral cMET inhibitor INCB28060, as part of the deal. That drug, a potential treatment for multiple cancers, is about to enter early-stage development.

 

The agreement beefs up Novartis’ oncology pipeline while also putting Incyte on a more stable footing with an experienced marketing partner. This “puts us in a strong position to transition Incyte into a successful commercial company with sufficient resources to continue to advance other promising compounds in our pipeline,” says Paul Friedman, Incyte’s president and CEO.

 

Each company will be responsible for costs relating to the development and commercialization of the JAK inhibitor, INCB18424, in its respective territories, with costs of collaborative studies shared equally.