Innovent Biologics and Incyte announce $391.5m partnership for cancer drugs in China

Innovent Biologics, a leading Chinese biopharma company, has struck a landmark deal with Incyte, a prominent US pharmaceutical firm, to develop and commercialize three investigational cancer drugs. The agreement, valued at up to $391.5 million, covers pemigatinib, a FGFR1/2/3 inhibitor; itacitinib, a JAK1 inhibitor; and parsaclisib, a PI3Kδ inhibitor, which are currently in clinical stages.

Strategic Collaboration for Cancer Treatment in China

Under the terms of the agreement, Innovent Biologics will have the exclusive rights to develop and commercialize these drugs across Mainland China, Hong Kong, Taiwan, and Macau. This partnership is expected to significantly impact the treatment landscape for various cancers in the region.

Michael DC Yu, CEO and President of Innovent Biologics, commented on the collaboration: “Based on the compelling clinical data reported to date, we believe pemigatinib, itacitinib, and parsaclisib have the potential to dramatically alter the treatment landscape for patients in China with FGFR-altered cholangiocarcinoma, urothelial carcinoma, graft-versus-host disease after bone marrow transplant, non-Hodgkin lymphoma, and other cancers. These novel medicines complement our existing pipeline and enable exploration of combination treatments to improve patient outcomes globally.”

Financial Terms and Milestones

The agreement includes an upfront payment of $40 million from Innovent Biologics to Incyte. Additionally, Incyte will receive a further $20 million upon the submission of the first Investigational New Drug (IND) application by Innovent in China, expected around 2019.

Incyte stands to earn up to $129 million in development and regulatory milestone payments, alongside potential commercial milestones payments totaling up to $202.5 million. The deal also includes tiered royalties ranging from the high teens to the low twenties on future sales. Incyte retains an option to participate in the promotion of these drugs within China.

Herve Hoppenot, CEO of Incyte, highlighted the strategic significance of the partnership: “Collaborating with Innovent provides us with a crucial opportunity to expand our reach in the oncology community. We are confident that Innovent’s experienced team and extensive clinical network will enhance our trials and, if approved, provide Chinese patients with access to our innovative therapies.”

This agreement marks a significant advancement in the global oncology field and highlights the growing synergy between international pharmaceutical firms and local biopharma companies in addressing unmet medical needs.