Lilly buys rights to Incyte’s anti-inflammatory pill

Eli Lilly & Co bought worldwide rights to an experimental pill being developed by Incyte Corp to treat inflammatory conditions, in a deal potentially worth more than $750m. Incyte shares rose in early trading. Incyte will receive an initial payment of $90m for the medicine, INCB28050, and is eligible for as much as $665m more, according to a statement released today by the companies. As a result of the deal, Lilly will have a fourth- quarter charge of about 5 cents a share. The treatment is from a group known as JAK inhibitors and is undergoing the second of three stages of testing generally required for US approval. The drug is being studied in rheumatoid arthritis. Unlike current treatments called TNF inhibitors, INCB28050 is taken orally rather than given through the veins.