INCY · 10-Q · 2026Q3 · Full report

Novartis Royalty Litigation Settlement

INCYTE CORP · 2026-10-29 · Importance 84 · Surprise 74 · In source text

In May 2025, Incyte and Novartis settled litigation concerning the duration of royalties owed under their Collaboration and License Agreement. Incyte paid Novartis $280.0 million to settle disputed royalties on U.S. JAKAFI net sales through December 31, 2024, and agreed to reduce by 50% the royalty rate on future U.S. JAKAFI net sales beginning January 1, 2025. Incyte had accrued approximately $537.1 million for the dispute at March 31, 2025 and recorded the $242.2 million difference between the accrual and settlement payment as a contract dispute settlement for the nine months ended September 30, 2025.

Key facts

• Under the Novartis settlement, Incyte paid $280.0 million for disputed royalties on U.S. JAKAFI sales through December 31, 2024, and agreed to reduce by 50% the royalty rate on future U.S. JAKAFI sales beginning January 1, 2025. source
• The reduced royalty paid for the quarter ended March 31, 2025 was approximately $14.9 million; the $242.2 million difference between total accrued royalties and the amount paid was recorded as contract dispute settlement for the nine months ended September 30, 2025. source
• As of March 31, 2025, Incyte had approximately $537.1 million in accrued royalties related to the Novartis dispute. source
• In May 2025, Incyte and Novartis settled Novartis-initiated litigation concerning the duration of royalty payments owed by Incyte under their Collaboration and License Agreement. source

Impact estimates