Eli Lilly, Incyte sign drug development deal

AP News
Posted: Dec 21, 2009 8:52 AM

Eli Lilly & Co. and Incyte Corp. said Monday they will develop a potential treatment for inflammatory and autoimmune diseases in a deal valued at $90 million upfront and potentially worth up to $665 million.

Under the deal, Eli Lilly gains worldwide rights to Incyte's experimental drug INCB28050 for the upfront payment and potential future milestone payments and royalties. Incyte retains codevelopment and copromotion options under the deal.

INCB28050 is currently in a midstage study focused on rheumatoid arthritis.

Eli Lilly said it expects to book a charge of 5 cents per share during the fourth quarter, but reaffirmed its full-year outlook for $4.30 to $4.40 per share, excluding charges. Analysts surveyed by Thomson Reuters currently expect an annual profit of $4.42 per share, on average.

Shares of Incyte, headquartered in Wilmington, Del., edged up to $9 in premarket trading from Friday's close of $8.49.

Shares of Eli Lilly, based in Indianapolis, closed at $35.72.