Pfizer to buy Incyte drugs
Reuters reports that Pfizer Inc. is set to pay Incyte Corp. as much as $803 million for the development, manufacture and marketing rights of drugs to treat chronic inflammatory conditions. Under the collaborative research and license agreement, Pfizer will get exclusive rights to Incyte''s portfolio of CCR2 antagonist compounds, the most advanced of which is in mid-stage studies in rheumatoid arthritis and insulin-resistant obese patients. Pfizer gains rights to potential uses for the oral drugs, except for one drug that may treat multiple sclerosis and possibly one other undisclosed indication. In return, Wilmington, Delaware-based Incyte will receive $40 million up front, payments worth up to $743 million should the experimental drugs reach various stages of development, and royalties on future sales. The world''s largest drugmaker also agreed to buy $20 million in notes that will be convertible into Incyte stock, and to provide research funding for the CCR2 portfolio. The agreement is subject to antitrust review and other standard closing conditions, the companies said.