US pharma company Incyte and Chinese biopharma company Innovent Biologics through their respective subsidiaries have entered into a deal worth up to $391.5 million for three investigational cancer drugs discovered and developed by the former.
The three investigational cancer drugs – pemigatinib, a FGFR1/2/3 inhibitor, itacitinib, a JAK1 inhibitor and parsaclisib, a PI3Kδ inhibitor, are currently in clinical stage. Innovent Biologics will be granted the rights to develop and commercialize the three cancer drugs in hematology and oncology across Mainland China, Hong Kong, Taiwan and Macau.
Michael DC Yu – CEO and President of Innovent Biologics said: “Based on the compelling clinical data reported to-date, we believe pemigatinib, itacitinib and parsaclisib may be poised, if further development is successful and approvals in China are granted, to dramatically alter the treatment landscape for patients in China with FGFR-altered cholangiocarcinoma and urothelial carcinoma, graft-versus-host-disease after bone marrow transplant and non-Hodgkin lymphoma, respectively, and other cancers.
“These three novel medicines from Incyte complement our rich pipeline of immune-oncology-focused monoclonal antibodies and also enable the exploration of combination treatment approaches with the potential to further improve patient outcomes worldwide.”
In this regard, Innovent Biologics will pay an upfront amount of $40 million in cash to Incyte. The US pharma company will be eligible to be paid a further $20 million once the first investigational new drug (IND) application is submitted by Innovent in China, which is likely to be in 2019.
Incyte will also be eligible to be paid up to $129 million in the form of potential development and regulatory milestones payments to go along with up to $202.5 million in the form of potential commercial milestones payments.
Further, the US pharma company will get tiered royalties from the high teens to the low twenties on sales of products in the future resulting from the collaboration. Incyte retains an option to help in the promotion of the three investigational cancer drugs in China.
Herve Hoppenot – CEO of Incyte said: “The collaboration and partnership with Innovent provides us with an important and strategic opportunity to further serve the oncology community around the world by potentially bringing new, innovative medicines to patients with high unmet medical needs in China.
“We believe Innovent’s experienced leadership team and sizeable clinical network will expand our clinical trials for itacitinib, pemigatinib and parsaclisib, and, if any of these product candidates are approved, will provide access to our innovative therapies to patients and healthcare providers in China.”