Incyte Corporation is a Delaware-based biopharmaceutical company that innovates, develops, and markets proprietary therapeutics. Its main focus is to bring out new products for unmet needs. Recently, an Incyte press release announced that it has received approval for Tabrecta, an inhibitor that for mutation-positive and recurrent nonresectable non-small cell lung cancer. The approval was granted by the Japanese Ministry for Health, Labour, and Welfare for use by patients in Japan who are diagnosed with METex14 NSCLC.
Tabrecta is the third drug, from the Incyte pipeline, to be approved for use in Japan. Under a license agreement, Incyte has granted Novartis the worldwide rights for commercialization and development of Tabrecta. In return, Incyte will be now eligible to receive more than $500 million in royalties and milestones. The royalties will range between 12 and 14% of global sales. The Japanese approval triggers a payment of $20 million from Novartis.
According to Lothar Finke, M.D., Ph.D., Group Vice President, Head of Development and General Manager, Asia, Incyte, “We are grateful for the efforts of Novartis Pharma K.K. and MHLW and are delighted that this important, targeted treatment option will now become available to patients in Japan diagnosed with METex14 NSCLC.” He further added, “This approval highlights the strength of the Incyte in-house discovery program, and our commitment to finding solutions for serious medical needs.”
The news of Tabrecta’s approval comes about 2 months after the company announced its Q12020 earnings results. The quarterly earnings had missed analyst estimates with a net loss of $2.86 per share on revenues of $568.5 million. However, the stock price has remained steady. Incyte stock closed at $106.47 on 2nd July 2020, up 12.57% for the past month.