Eli Lilly licenses arthritis drug for $90M, expands CFO’s role

INDIANAPOLIS, Indiana – Eli Lilly and Co. has inked a $90 million deal with a Delaware drug-maker to commercialize and develop an anti-arthritis compound.

Under the terms of the deal with publicly traded Incyte Corp., Lilly receives worldwide rights to develop and commercialize the compound, known as INCB280, as an oral treatment for all inflammatory conditions, according to a statement from the Indianapolis-based pharmaceutical giant.

Incyte will receive a $90 million upfront payment and is eligible for up to $665 million in additional payments if the drug successfully makes it to market, which could take years.

The drug is currently in the midst of Phase II trials for rheumatoid arthritis, a chronic inflammatory disorder that most often affects small joints in the hands and feet. The compound becomes the third arthritis-treating drug Lilly has that is in human testing. Lilly has no arthritis drugs on the market.

The next few years could be a challenging time for Lilly as it scrambles to offset sales losses caused by expiring patents on three key drugs: antipsychotic Zyprexa, antidepressant Cymbalta and cancer drug Gemzar.

Separately, Lilly announced last week that it was expanding the role of its chief financial officer, Derica Rice. Rice will retain his CFO title and receive a promotion to executive vice president of global services as of Jan. 1. Rice’s new responsibilities will include overseeing the company’s information technology operations and the company’s Six Sigma business management strategy, a quality management and process improvement methodology.