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Why These Collaborations Are Important to Incyte

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Incyte’s Jakafi and its collaborations

Incyte’s (INCY) Jakafi is distributed in the US markets through its network of specialty pharmacy providers and wholesalers for direct delivery to patients or patients’ pharmacies. The distribution model for the US markets is well-established and familiar to physicians in the oncology field.

For outside the US markets, the company has entered a collaboration with Novartis (NVS) for the development and commercialization of the drug Jakafi. Novartis sells Jakafi under the name of “Jakavi.” Incyte gets royalties on the sale of Jakavi outside US markets.

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Other collaborations and developments

Some other collaborations and developments for Incyte include the following:

  • Incyte announced strategic research collaboration with Merus (MRUS) to discover and develop bispecific antibodies based on Merus’s Biclonics technology.
  • Incyte acquired Ariad Pharmaceuticals’ (ARIA) European operations in June 2016.
  • Incyte also received exclusive development and commercialization rights for Ariad Pharmaceuticals’ drug Iclusig for the European Union and 22 other countries in June 2016.
  • Incyte entered an agreement with Jiangsu Hengrui Medicine in September 2015 for exclusive worldwide development and commercialization rights of the drug SHR-1210 excluding the regions of China, Hong Kong, Taiwan, and Macao.
  • Incyte and Agenus (AGEN) entered a license, development, and commercialization agreement in January 2015 for the discovery of novel immune-therapeutics using Agenus’s proprietary “Retrocyte Display antibody discovery platform.”
  • Eli Lilly (LLY) has received exclusive global rights for the drug Baricitinib, which is a JAK inhibitor presently in the pivotal stage for the treatment of rheumatoid arthritis and clinical studies for the treatment of atopic dermatitis.

Investors can consider ETFs like the VanEck Vectors Biotech ETF (BBH), which holds ~4.4% of its total assets in Incyte, in order to divest the risk.

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