Incyte Corporation has announced a significant development in its business relationship with Novartis Pharma AG. On May 11, 2025, the two companies reached a settlement agreement concerning a dispute over royalty payments related to the drug JAKAFI. Under the terms of the agreement, Incyte will pay Novartis $280 million to settle disputed royalties on U.S. sales of JAKAFI through December 31, 2024. Additionally, the royalty rate on future net sales of JAKAFI in the United States will be reduced by 50% starting January 1, 2025, for a period specified in the Settlement Agreement. This adjustment will result in a reduced royalty payment of approximately $14.9 million for the quarter ending March 31, 2025. The financial implications of this settlement will be reflected in Incyte's financial statements for the quarter ending June 30, 2025.
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