By Denny Jacob
Incyte and Novartis Pharma reached a settlement related to litigation initiated by the latter company regarding royalty payments.
Incyte said it agreed to pay Novartis $280 million to settle the disputed royalties on U.S. sales of blood-cancer treatment Jakafi through Dec. 31. The parties also agreed to reduce by 50% the royalty rate payable by the company to Novartis on future sales of Jakafi in the U.S. beginning Jan. 1, 2025.
Incyte said the difference of $242.2 million between the total accrued royalties and the total amount it will pay to Novartis will be recorded in its financial statements for the quarter ending June 30.
Incyte and Novartis entered into a collaboration and license agreement in 2009.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
May 14, 2025 08:30 ET (12:30 GMT)
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