Incyte Corp INCY:NASDAQ

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Calithera Biosciences Cancels License Agreement With Incyte

10:05AM ET 9/04/2020 MT Newswires
Calithera Biosciences (CALA) said in a regulatory filing Thursday it is terminating its collaboration and license agreement with Incyte (INCY) from Sept. 30, to focus its resources on its own internal development program.

In January 2017, the companies had signed the agreement under which Incyte was granted an exclusive, worldwide license to develop and commercialize small molecule arginase inhibitors, including INCB001158, for hematology and oncology indications, with Incyte bearing 70% and Calithera bearing 30% of global development costs.

In April 2020, Calithera filed a lawsuit against Incyte alleging breach of contract over failure to pay two milestone payments.

With Calithera's decision to opt out, Incyte will pay all costs to develop INCB001158 or any other licensed products and also pay Calithera tiered royalties on net sales as well as additional royalties to reimburse previously incurred development costs and remaining potential milestones of $738 million. Calithera's rights to US profit sharing will no longer be effective.

Meanwhile, Calithera's rights to royalties outside the US will remain unchanged. It will have no rights to research, develop or co-detail INCB001158, while Incyte will have the right to take over all activities related to the research, development and commercialization of INCB001158.

Shares of Calithera were down over 2% in recent trading.

Price: 3.58, Change: -0.03, Percent Change: -0.83