Incyte Announces Acquisition of Escient Pharmaceuticals and its Pipeline of First-in-Class Oral MRGPR Antagonists
- Acquisition of Escient Pharmaceuticals enhances Incyte's portfolio in Inflammation and Autoimmunity
- EP262 demonstrates potential in treating inflammatory disorders like chronic spontaneous urticaria
- EP547 targets cholestatic pruritus and other conditions with severe pruritus
- Acquisition cost of $750 million plus additional considerations
- Incyte aims to leverage their expertise to bring new treatment options to patients
- None.
Insights
The acquisition of Escient Pharmaceuticals by Incyte represents a strategic move to enhance Incyte's portfolio in the inflammation and autoimmunity space. The key assets in question, EP262 and EP547, are positioned as first-in-class MRGPRX2 and MRGPRX4 antagonists, respectively. Both compounds show promise in addressing inflammatory disorders, a therapeutic area with significant patient need and economic potential. As Incyte acquires these candidates for
Investors should note that the pharmaceutical industry often faces high attrition rates in drug development. However, the fact that EP262 has already shown proof-of-mechanism in chronic inducible urticaria and is proceeding to a Phase 2 study for chronic spontaneous urticaria, flags a milestone that could de-risk the investment somewhat. With no serious or severe adverse events reported in Phase 1, the safety profile of EP262 could be a potential advantage.
Looking at the timeline of potential product launches starting in 2029, there is a considerable lead time before revenue generation from these assets can commence. Investors should weigh the opportunity against the inherent risks and the long development timelines characteristic of the pharmaceutical industry. The transaction's dependence on regulatory clearances such as the Hart-Scott-Rodino Act also introduces an element of uncertainty that must be factored into investment decisions.
From a market dynamics perspective, the acquisition sends a signal about the competitive landscape in the inflammation and autoimmunity sector. Incyte is reinforcing its position by onboarding therapies that could cater to underserved niches within the inflammatory disease domain. By targeting novel receptors like MRGPRX2 and MRGPRX4, these therapies could open up new treatment paradigms and command premium pricing if they reach the market.
The investor should recognize that the timing of this acquisition hints at a proactive effort by Incyte to fortify its pipeline ahead of key patent expirations or before the need for revenue diversification becomes critical. Additionally, the synergy between Incyte's existing R&D capabilities and Escient's novel drug candidates could lead to cost efficiencies in the drug development process, potentially enhancing shareholder value in the long run.
Given the size of the inflammatory disease market and the chronic nature of the conditions targeted, sustained demand for new treatments could lead to sizeable, continuous revenue streams once commercialization is achieved. The investor should monitor Incyte's integration progress and any subsequent updates on drug development milestones that could impact the company's financial outlook.
- EP262, a first-in-class oral Mas-related G protein-coupled receptor X2 (MRGPRX2) antagonist with the potential to treat a broad range of inflammatory disorders, has demonstrated proof-of-mechanism in chronic inducible urticaria and is in a Phase 2 study for chronic spontaneous urticaria
- EP547 is a first-in-class oral MRGPRX4 antagonist with the potential to treat cholestatic pruritus and other conditions with severe pruritus
- Acquisition supports Incyte’s portfolio strategy and complements its expanding R&D activities in Inflammation and Autoimmunity (IAI)
- Incyte analyst and investor call scheduled for April 23, 2024 at 8:00 a.m. ET
“As a company dedicated to innovation and the discovery of transformative medicines, we are excited to add EP262 and EP547 to our portfolio. This acquisition builds on our strategy to develop differentiated and first-in-class medicines with high potential,” said Hervé Hoppenot, Chief Executive Officer, Incyte. “EP262 and EP547 are complementary additions to our portfolio, providing an opportunity to leverage our expertise, address the needs of patients with inflammatory diseases and additional potential launch opportunities starting in 2029.”
By blocking MRGPRX2 and degranulation of mast cells, EP262 has the potential to effectively treat multiple mast cell-mediated diseases including atopic dermatitis (AD), chronic inducible urticaria (CIndU) and chronic spontaneous urticaria (CSU). Preclinical studies presented at the American Academy of Dermatology annual meeting in March 2023 showed that EP262 improved AD-like skin lesions and markers of type 2 inflammation. Additionally, in a Phase 1 study of 64 healthy volunteers, EP262 was safe and well tolerated at all doses tested, with no serious or severe adverse events, no adverse events leading to discontinuation and no clinically meaningful adverse changes in safety laboratory parameters, vital signs or ECG parameters. Treatment-emergent adverse events for EP262 were mild, with an incidence that was lower than placebo (
“These drug candidates are the result of the highly innovative research performed by Escient’s employees and scientific collaborators,” said Joshua A. Grass, President and Chief Executive Officer, Escient. “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.”
Under the terms of the agreement, Incyte will acquire Escient and its assets for
Centerview Partners LLC and Goldman Sachs & Co. LLC advised Escient on the transaction and Fenwick & West LLP acted as legal counsel for Escient. Covington & Burling LLP acted as legal counsel for Incyte.
Incyte Conference Call and Webcast
Incyte will hold a conference call and webcast this morning at 8:00 a.m. ET. To access the conference call, please dial 877-407-3042 for domestic callers or +1 201-389-0864 for international callers. When prompted, provide the conference identification number: 13746287. If you are unable to participate, a replay of the conference call will be available for 90 days. The replay dial-in number for
The conference call will also be webcast live and can be accessed at investor.incyte.com.
About EP262
EP262 is a potent, highly selective once-daily small molecule antagonist of MRGPRX2, a receptor expressed on mast cells that is activated by numerous ligands, including many peptides released from sensory neurons as well as other cell types. In response to MRGPRX2 activation, mast cells release histamine, tryptase, chymase, chemokines and cytokines, which can cause itchy hives, angioedema, type 2 inflammation (through engagement of the adaptive immune system) and chronic pruritus and pain. Preclinical data demonstrate that, by blocking activation of MRGPRX2, EP262 has the potential to effectively treat a broad range of mast cell-mediated conditions, with an initial focus on chronic urticarias and atopic dermatitis.
About EP547
EP547 is a potent, highly selective antagonist that blocks the activation of MRGPRX4 by various bile acids, bilirubin and urobilin. By virtue of this disease-specific mechanism of action, EP547 has the potential to be a highly targeted and efficacious treatment for cholestatic and uremic pruritus.
About Chronic Urticaria
Chronic urticaria, defined as urticaria persisting for more than 6 weeks, manifests with very itchy hives that may vary in size and can significantly impact a patient’s quality of life by interfering with sleep and daily activities. Some patients with chronic urticaria may also develop swelling deeper under the skin or in other tissues (angioedema). There are two main forms of chronic urticaria. In chronic spontaneous urticaria (CSU), hives occur spontaneously, without known triggers. In chronic inducible urticaria (CIndU), hives are induced by specific triggers, such as cold exposure (cold urticaria) or touch (symptomatic dermographism), among others.
About Incyte
A global biopharmaceutical company on a mission to Solve On., Incyte follows the science to find solutions for patients with unmet medical needs. Through the discovery, development and commercialization of proprietary therapeutics, Incyte has established a portfolio of first-in-class medicines for patients and a strong pipeline of products in Oncology and Inflammation & Autoimmunity. Headquartered in
For additional information on Incyte, please visit Incyte.com or follow us on social media: LinkedIn, X, Instagram, Facebook, YouTube.
About Escient Pharmaceuticals
Escient Pharmaceuticals is a clinical-stage company focused on developing novel therapeutics to address a broad range of neurosensory-inflammatory disorders. The company’s pipeline includes two first-in-class small molecule antagonists targeting MRGPRX2 for the treatment of various mast cell mediated disorders and MRGPRX4 for cholestatic pruritus. Based in
Incyte Forward-looking Statements
Except for the historical information set forth herein, the matters set forth in this press release, including statements regarding the opportunities presented by this transaction; whether and when EP262 or EP547 will be approved for use; whether and when Incyte will bring EP262 or EP547 to market; the potential of EP262 or EP547 to treat patients with atopic dermatitis (AD), chronic inducible urticaria (CIndU) and chronic urticaria (CSU) or for any other indication; and the potential for Incyte to broaden its ability to bring new medicines to patients, contain predictions, estimates and other forward-looking statements.
These forward-looking statements are based on the Company's current expectations and are subject to risks and uncertainties that may cause actual results to differ materially, including unanticipated developments in and risks related to: unanticipated delays; further research and development and the results of clinical trials possibly being unsuccessful or insufficient to meet applicable regulatory standards or warrant continued development; the ability to enroll sufficient numbers of subjects in clinical trials; the Company’s dependence on its relationships with its collaboration partners; the efficacy or safety of the Company’s products and the products of the Company’s collaboration partners; the acceptance of the Company’s products and the products of the Company’s collaboration partners in the marketplace; market competition; sales, marketing, manufacturing and distribution requirements; and other risks detailed from time to time in the Company’s reports filed with the Securities and Exchange Commission, including its annual report filed on Form 10-K for the year ended December 31, 2023. The Company disclaims any intent or obligation to update these forward-looking statements.
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Incyte Contacts:
Media
media@incyte.com
Investors
ir@incyte.com
Escient Contact:
ir@escientpharma.com
Source: Incyte and Escient Pharmaceuticals
FAQ
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