Incyte inks $750M deal for immune and neuro biotech Escient

Incyte said it will pay $750 million to buy San Diego biotech Escient Pharmaceuticals and its pipeline of early-stage drug candidates.

The deal gives the Delaware-based drugmaker access to once-daily oral small molecules and the potential to market new medicines starting in 2029, Incyte CEO Hervé Hoppenot said in a statement Tuesday morning. Incyte already has eight approved products, including multi-indicated Jakafi, blood cancer medicine Monjuvi and eczema cream Opzelura, among others.

Hervé Hoppenot

The move comes a year and a half after Escient raised a $120 million Series C from New Enterprise Associates, Abingworth and Forge Life Science Partners. It’s also received backing from Sanofi’s venture arm, The Column Group and others.

In recent months, Escient had been “evaluating options” with regard to an IPO, a source familiar with the matter previously told Endpoints News. It adds to a busy year for San Diego biotechs that have gone public, raised megarounds or signed deals.

The biotech is working on an antagonist of Mas-related G protein-coupled receptor X2, or MRGPRX2. The biotech started three Phase 2 trials of the asset, known as EP262, last fall. Investigators are looking at the experimental medicine in patients with chronic inducible urticaria, chronic spontaneous urticaria and atopic dermatitis. It has plans for other indications as well, per Escient’s website.

Also in the clinic is an MRGPRX4 antagonist known as EP547. That asset is in early testing for cholestatic pruritus and uremic pruritus.

Joshua Grass

“With its experienced development and commercial teams in Inflammation and Autoimmunity and portfolio of commercial and development stage products, Incyte is well positioned to translate this new science into valuable medicines for patients,” Escient CEO Joshua Grass said.

Incyte has been acquisitive in the past. It paid $25 million to MorphoSys to acquire the remainder of the commercialization rights to the immunotherapy Monjuvi earlier this year. It also bought vitiligo startup Villaris Therapeutics for up to $1.36 billion in 2022.

At the end of 2023, Incyte had $3.7 billion in cash, equivalents and marketable securities. The biotech will report first-quarter results on April 30.

The companies expect the deal to close by the third quarter.