Lilly pays $90 million for autoimmune drug

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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.


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

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