WILMINGTON, Del. (
announced Monday that it has licensed a mid-stage rheumatoid arthritis drug to
Under terms of the agreement, Lilly is paying $90 million upfront to Incyte for development and marketing rights to INCB28050, which is currently in a phase II study for rheumatoid arthritis.
Incyte will also be eligible for an additional $665 million in potential milestone payments from Lilly and double-digit royalties on the drug's global sales, if approved.
The partnership between the two companies encompasses INCB28050 and certain follow-on compounds which may be developed for other autoimmune and anti-inflammatory diseases.
As a result of this transaction, Lilly expects to incur a charge to earnings in the fourth quarter of approximately 5 cents per share. The company reconfirmed its full-year 2009 earnings guidance of $3.90 to $4.00 per share on a reported basis, or $4.30 to $4.40 per share on a pro forma basis.
INCB28050 is an oral drug that inhibits JAK1 and JAK2 -- two enzymes thought to play a role in the course of rheumatoid arthritis and other inflammatory/autoimmune diseases.
Incyte's lead JAK inhibitor, INCB18424, is in Phase III development for myelofibrosis.
Pfizer Licenses Athersys Stem-Cell Drug
(At 6:46 AM EST)
said Monday it has licensed a stem cell therapy for inflammatory bowel disease from
Athersys will received $6 million upfront from Pfizer and is eligible for another $105 million in future milestone payments. Pfizer is paying the costs to develop the stem cell therapy, known as MultiStem, for inflammatory bowel disease.
MultiStem is made from stem cells obtained from the bone marrow of healthy, adult donors.
Pfizer will pay royalties to Athersys if MultiStem is approved for sale. Athersys retains the rights to develop MultiStem in various other indications.
New Analyst Coverage for BioCryst Pharmaceuticals
Morgan Stanley initiated research coverage on
Monday with an "equal weight" rating.
"We see potential for near-term upside from government peramivir orders (IV seasonal and pandemic flu drug) over the next 12 months, but have less insight into the success of the drug’s Phase III trial in flu, which is critical for long-term commercial success beyond the current pandemic. Government orders or a second H1N1 virus peak (many experts expect) could create short-term stock momentum, but sustainable upside will depend on Phase 3 seasonal flu trials (data 2011), leaving us with an equal weight rating," writes analyst Steve Harr.
Morgan Stanley was the lead investment bank on BioCryst's recent follow-on stock offering.
-- Reported by Adam Feuerstein in Boston
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