Incyte to pay Hengrui $25 million upfront plus the potential for
milestone and royalty payments
Incyte Corporation (Nasdaq: INCY) today announced a global license and
collaboration agreement with Jiangsu Hengrui Medicine Co., Ltd. for the
development and commercialization of SHR-1210, an investigational
anti-PD-1 monoclonal antibody. Under the agreement, Incyte will have the
exclusive development and commercialization rights to SHR-1210
worldwide, with the exception of Mainland China, Hong Kong, Macau, and
Taiwan. SHR-1210 is expected to enter proof-of-concept studies for the
treatment of patients with advanced solid tumors in the coming months.
“The addition of this anti-PD-1 candidate to our early stage portfolio
reinforces our commitment to cancer patients and further diversifies our
clinical development programs,” stated Hervé Hoppenot, President and
Chief Executive Officer of Incyte. “We continue to make excellent
progress in the multiple clinical trials underway across our existing
portfolio, including our strategic collaborations.”
Piaoyang Sun, Chairman of the Board of Hengrui, added, “Both Incyte and
Hengrui are dedicated to cancer immunotherapy and are investigating
several relevant biological targets in the area. The addition of
SHR-1210 is an excellent fit to Incyte’s oncology portfolio, and we are
pleased to see Incyte’s commitment to this PD-1 program. Combining the
expertise and resources of both companies can accelerate the development
of SHR-1210.”
Terms of the Agreement
Under the terms of the agreement, Incyte will acquire development and
commercialization rights to SHR-1210 worldwide, with the exception of
Mainland China, Hong Kong, Macau, and Taiwan, in exchange for an upfront
payment of $25 million. The terms also include potential milestone
payments of up to $770 million to Hengrui, consisting of $90 million for
regulatory approval milestones, $530 million for commercial performance
milestones, and $150 million based on clinical superiority. The terms
also include tiered royalties to Hengrui on net sales of SHR-1210 in
Incyte territories. Under the Agreement, Incyte and Hengrui will assume
all financial obligations associated with the development and
commercialization of SHR-1210 in their respective territories.
About Anti-PD-1 Monoclonal Antibodies
Monoclonal antibodies targeting PD-1 enhance anti-tumoral immunity and
are being developed for the treatment of cancer. Many tumor cells
express PD-L1, an immunosuppressive PD-1 ligand. Inhibition of the
interaction between PD-1 and PD-L1, known as immune checkpoint blockade,
can enhance T-cell responses and mediate preclinical antitumor activity.1
For this transaction, Incyte was advised by Morgan Lewis, and Hengrui
was advised by Wilson Sonsini Goodrich & Rosati.
About Incyte
Incyte Corporation is a Wilmington, Delaware-based biopharmaceutical
company focused on the discovery, development and commercialization of
proprietary therapeutics, primarily for oncology. For additional
information, please visit www.incyte.com.
About Jiangsu Hengrui Medicine Co., Ltd.
Jiangsu Hengrui Medicine Co., Ltd., established in 1970, is a fully
integrated pharmaceutical company in China, with annual net sales of
over U.S. $1.2 billion. Hengrui's products and innovative R&D span
multiple therapeutic areas, including oncology and hematology,
anesthesiology and pain management, cardiovascular and metabolic
diseases, contrast media, and inflammation. Visit http://www.hrs.com.cn for
further information.
Forward-Looking Statements (Incyte)
Except for the historical information set forth herein, the matters set
forth in this press release, including without limitation statements
with respect to the timing of proof of concept studies for SHR-1210,
contain predictions and estimates and are forward-looking statements
within the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are based on Incyte’s current expectations and subject to
risks and uncertainties that may cause actual results to differ
materially, including the high degree of risk associated with drug
development, results of further research and development, unanticipated
delays, other market or economic factors and technological advances,
regulatory approval of the transaction and other risks detailed from
time to time in Incyte's filings with the Securities and Exchange
Commission, including its Quarterly Report on Form 10-Q for the quarter
ended June 30, 2015. Incyte disclaims any intent or obligation to update
these forward-looking statements.
1 Weber J (Oct 2010). "Immune checkpoint proteins: a new
therapeutic paradigm for cancer--preclinical background: CTLA-4 and PD-1
blockade". Seminars in Oncology 37(5):
430–9. doi:10.1053/j.seminoncol.2010.09.005. PMID 21074057.
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