Incyte Corporation (INCY:INCY) announced it has acquired the rights to develop and commercialize ruxolitinib (Jakafi®), its proprietary JAK1/JAK2 inhibitor, for graft-versus-host disease (GVHD) from Eli Lilly and Company (NYSE:LLY). Additionally, Incyte has amended its Collaboration and License Agreement with Novartis, granting Novartis exclusive research, development and commercialization rights for ruxolitinib in GVHD outside the U.S.
“We are committed to the research and development of innovative medicines that will benefit patients with serious diseases, like GVHD, where there are no approved treatments,” said Hervé Hoppenot, President and CEO,Incyte. “We are very pleased to be able to expand our development opportunities for ruxolitinib and plan to initiate a registration study in GVHD later this year as we seek to accelerate the availability of a treatment option for patients with this life-threatening disorder.”
Incyte and Lilly have agreed to amend their License, Development and Commercialization Agreement to enable Incyte to independently develop and commercialize ruxolitinib for GVHD. Incyte will make an upfront payment of $35 million to Lilly. The terms of the agreement also include additional potential payments by Incyte to Lilly upon the achievement of certain regulatory milestones.
Additionally, Incyte and Novartis have agreed to amend their Collaboration and License Agreement, granting Novartis the rights to research, develop and commercialize ruxolitinib for GVHD outside the U.S. Novartis will make payments to Incyte upon the achievement of certain development and regulatory milestones.
If approved, Incyte expects to commercialize ruxolitinib for GVHD in the U.S. and under the terms of the existing Collaboration and License Agreement would be eligible to receive potential milestone payments and royalties on sales of ruxolitinib in GVHD by Novartis outside the U.S. (Original Source)
Shares of Incyte closed yesterday at $73.35, down $0.14 or -0.19%. INCY has a 1-year high of $133.62 and a 1-year low of $55. The stock’s 50-day moving average is $70.81 and its 200-day moving average is $93.98.
On the ratings front, Incyte has been the subject of a number of recent research reports. In a report issued on March 30, Leerink Swann analyst Michael Schmidt maintained a Buy rating on INCY, with a price target of $85, which implies an upside of 15.9% from current levels. Separately, on March 23, Morgan Stanley’s Andrew Berens maintained a Buy rating on the stock and has a price target of $85.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Michael Schmidt and Andrew Berens have a total average return of 1.5% and 21.0% respectively. Schmidt has a success rate of 51.8% and is ranked #1476 out of 3762 analysts, while Berens has a success rate of 71.4% and is ranked #248.
The street is mostly Bullish on INCY stock. Out of 10 analysts who cover the stock, 10 suggest a Buy rating . The 12-month average price target assigned to the stock is $96.75, which implies an upside of 31.9% from current levels.
Incyte Corp. is a biopharmaceutical company, which focuses on the discovery, development, development, formulation, manufacturing and commercialization of proprietary therapeutics to treat serious unmet medical needs, primarily in oncology.