Incyte Corporation and Novartis have announced a collaboration and licence agreement for two investigational hematology-oncology therapies, which could be used to treat the life-threatening bone condition myelofibrosis and other cancers.

The agreement covers two of Incyte’s investigational hematology-oncology therapies; INCB18424, an oral JAK1/JAK2 inhibitor currently in Phase III development for myelofibrosis; and INCB28060, an oral cMET inhibitor about to enter Phase I development for multiple cancers.

Under the agreement Novartis will take responsibility for developing a commercialisation of INCB18424 outside of the US, where Incyte will still retain exclusive rights. Novartis will also be responsible for the future worldwide development of INCB28060.

Novartis will make an upfront payment of $150m to Incyte plus an immediate $60m milestone payment for the initiation of European Phase III trials. Incyte may also be eligible for additional payments of up to approximately $1.1bn if future development and commercialisation milestones are reached.