IBJNews

Lilly pays $90 million for autoimmune drug

Back to TopCommentsE-mailPrintBookmark and Share

Eli Lilly and Co., in a bid to beef up its pipeline of medications for autoimmune diseases, is paying $90 million for the global rights to an experimental drug being tested as a treatment for rheumatoid arthritis.

The drug, which is being developed by Delaware-based Incyte Corp., blocks the functioning a group of enzymes known as JAK, which play a role in some autoimmune and inflammatory diseases. Lilly also acquired the rights to later drugs using the same JAK inhibiting technology.

If the drug makes it to market, Indianapolis-based Lilly could pay another $665 million to Incyte for reaching various milestones along the way. Also, Lilly agreed to share royalties from any sales of the drug. The drug, a pill taken orally, is being tested in patients in a Phase 2 clinical trial.

Due to the transaction, Lilly expects to incur a fourth-quarter charge of 5 cents per share. However, the company reaffirmed its full-year profit forecast of $3.90 to $4.00 per share.

"This new alliance with Incyte reinforces Lilly's commitment to expand our presence in inflammation and autoimmunity through the development of a new class of oral anti-inflammatory therapies," said Dr. Eiry Roberts, Lilly’s vice president for autoimmune product development.

ADVERTISEMENT

  • GOOD NEWS
    Let's work together to see if we can get you in the trials! I'm serious. Tell me if you're interested.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
ADVERTISEMENT