Prelude Therapeutics secures $60M from Incyte option deal

Prelude Therapeutics (NASDAQ: PRLD) announced an exclusive option agreement with Incyte (NASDAQ: INCY) for its JAK2V617F JH2 inhibitor program targeting myeloproliferative neoplasms.

Under the agreement, Prelude will receive $60 million in immediate capital, comprising a $35 million upfront payment and a $25 million equity investment. Incyte will purchase 6.25 million shares of Prelude non-voting common stock at $4.00 per share.

The deal grants Incyte an exclusive option to acquire Prelude's mutant selective JAK2V617F program for $100 million during the option period. If exercised, Prelude would be eligible for up to $775 million in additional clinical and regulatory milestones, plus single-digit royalties on global net sales. Total potential payments could reach $910 million excluding royalties.

The JAK2V617F mutation affects approximately 95% of polycythemia vera patients, 60% of essential thrombocythemia patients, and 55% of myelofibrosis patients. Prelude has developed compounds that target the JAK2 JH2 "deep pocket" where the V617F mutation resides.

"We're pleased to put this agreement in place with Incyte, recognized global leaders in the MPN field," said Kris Vaddi, Prelude's chief executive officer.

Bill Meury, Incyte's president and chief executive officer, stated the agreement "provides an opportunity to enhance our robust portfolio of clinical and preclinical JAK2V617F candidates for patients with MPNs."

Prelude will continue developing the program during the option period. If Incyte does not exercise the option, all program rights remain with Prelude. The company plans to present program data at the American Society of Hematology Annual Meeting in December.

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