Indianapolis-based Eli Lilly & Co. (NYSE: LLY) has submitted a new drug application to the U.S. Food and Drug Administration. The application is for the approval of a new, once-daily treatment for rheumatoid arthritis.
Lilly collaborated on the development of the drug, known as baricitinib, with Delaware-based Incyte Corporation (Nasdaq: INCY). Incyte will receive a milestone payment of $35 million from Lilly related to the NDA submission.
If the drug is approved by the FDA, Incyte will receive another milestone payment of $100 million from Lilly. The company could earn future milestone payments and be eligible for royalties on global net sales of the drug as well.
"Lilly’s collaboration with Incyte has produced a rigorous phase 3 program and, if approved, the potential of a promising new treatment option for people with RA," said David Ricks, president of Lilly Bio-Medicines.
If the FDA approves the drug, Lilly will lead launch and global commercialization efforts. Lilly says it owns the global rights to "develop and commercialize baricitinib as an oral treatment for all inflammatory conditions."