MorphoSys will develop and commercialise its anti-CD19 antibody tafasitamab (MOR208) globally via a collaboration and license agreement with Incyte.
Tafasitamab is an Fc-engineered antibody against CD19 currently in clinical development for the treatment of B cell malignancies.
MorphoSys and Incyte will co-commercialise tafasitamab in the US, while Incyte has exclusive commercialization rights outside of the US.
MorphoSys will receive an upfront payment of $750 million and, in addition, Incyte will make an equity investment into MorphoSys of $150 million in new American Depositary Shares (ADS) of MorphoSys at a premium to the share price at signing of the agreement.
Depending on the achievement of certain developmental, regulatory and commercial milestones, MorphoSys will be eligible to receive milestone payments amounting to up to $1.1 billion.
MorphoSys will also receive tiered royalties on ex-US net sales of tafasitamab in a mid-teens to mid-twenties percentage range of net sales.
In the US, MorphoSys and Incyte will co-commercialise tafasitamab, with MorphoSys leading the commercialisation strategy and booking all revenues from sales of tafasitamab.
The companies will be jointly responsible for commercialisation activities in the US and will share profits and losses on a 50:50 basis.
Outside the US, Incyte will have exclusive commercialisation rights, and will lead the commercialisation strategy and book all revenues from sales of tafasitamab, paying MorphoSys royalties on ex-US net sales.