U.S. FDA Issues Complete Response Letter for Baricitinib

PR Newswire — April 14, 2017

INDIANAPOLIS, April 14, 2017 /PRNewswire/ — Eli Lilly and Company (NYSE: LLY)
and Incyte Corporation (NASDAQ: INCY) announced today that the U.S. Food and
Drug Administration (FDA) has issued a complete response letter for the New Drug
Application (NDA) of the investigational medicine baricitinib, a once-daily oral
medication for the treatment of moderate-to-severe rheumatoid arthritis (RA).

The letter indicates that the FDA is unable to approve the application in its
current form. Specifically, the FDA indicated that additional clinical data are
needed to determine the most appropriate doses. The FDA also stated that
additional data are necessary to further characterize safety concerns across
treatment arms. The companies disagree with the agency’s conclusions. The timing
of a resubmission will be based on further discussions with the FDA.

“We are disappointed with this action. We remain confident in the benefit/risk
of baricitinib as a new treatment option for adults with moderate-to-severe RA,”
said Christi Shaw, president of Lilly Bio-Medicines. “We will continue to work
with the FDA to determine a path forward and ultimately bring baricitinib to
patients in the U.S.”

Lilly and Incyte submitted the NDA for baricitinib to the FDA in January 2016,
and in January 2017 announced the FDA’s three-month extension to allow time for
review of additional data analyses.

Lilly is reaffirming both its financial guidance for 2017 and its mid-term
guidance for the remainder of this decade. Incyte is evaluating the impact of
the complete response on its previously-issued milestone and R&D expense
guidance for 2017; any update will be provided on its Q1 2017 earnings call.

About Baricitinib
Baricitinib is a once-daily oral JAK inhibitor currently in clinical studies for
inflammatory and autoimmune diseases. There are four known JAK enzymes: JAK1,
JAK2, JAK3 and TYK2. JAK-dependent cytokines have been implicated in the
pathogenesis of a number of inflammatory and autoimmune diseases, suggesting
that JAK inhibitors may be useful for the treatment of a broad range of
inflammatory conditions, including rheumatoid arthritis.

In December 2009, Lilly and Incyte announced an exclusive worldwide license and
collaboration agreement for the development and commercialization of baricitinib
and certain follow-on compounds for patients with inflammatory and autoimmune
diseases. Baricitinib was submitted for regulatory review seeking marketing
approval for the treatment of rheumatoid arthritis in the U.S., European Union
and Japan in 2016, and was approved in the EU in February 2017. It is being
studied in phase 2 trials for atopic dermatitis and systemic lupus
erythematosus, and a phase 3 trial for patients with psoriatic arthritis is
expected to be initiated in 2017.

About Rheumatoid Arthritis
Rheumatoid arthritis is a systemic autoimmune disease characterized by
inflammation and progressive destruction of joints.[i,ii] More than 23 million
people worldwide suffer from RA.[iii] Approximately three times as many women as
men have the disease. Current treatment of RA includes the use of non-steroidal
anti-inflammatory drugs, oral conventional synthetic disease-modifying
antirheumatic drugs (csDMARDs), such as methotrexate – the current standard of
care – and injectable, biological disease-modifying antirheumatic drugs
(bDMARDs) that target selected mediators implicated in the pathogenesis of RA.
[iv] Despite current treatment options, many patients do not reach their
therapeutic goals or sustained remission.[v,vi]There remains an important need
to provide additional treatments to improve overall patient care.

About Baricitinib Phase 3 Trials
Lilly and Incyte conducted four successful pivotal phase 3 clinical trials of
baricitinib in patients with moderate- to-severe active rheumatoid arthritis to
support regulatory submission in most countries. Two of the four studies
included pre-specified comparisons to approved DMARDs: one to methotrexate
(RA-BEGIN) and one to adalimumab (RA-BEAM). An additional phase 3 study was
initiated to support clinical development in China. The clinical trial program
includes a wide range of patients including those who are methotrexate-naïve,
inadequate responders to methotrexate, inadequate responders to conventional
synthetic disease modifying antirheumatic drugs, or inadequate responders to
biologic DMARDs including TNF inhibitors. Patients completing any of the phase 3
studies can enroll in a long-term extension study. For additional information on
this clinical trial program, please visit www.clinicaltrials.gov.

About Incyte
Incyte Corporation is a Wilmington, Delaware-based biopharmaceutical company
focused on the discovery, development and commercialization of proprietary
therapeutics. For additional information on Incyte, please visit the Company’s
web site at www.incyte.com.

Follow @Incyte on Twitter at https://twitter.com/Incyte.

About Eli Lilly and Company
Lilly is a global healthcare leader that unites caring with discovery to make
life better for people around the world. We were founded more than a century ago
by a man committed to creating high-quality medicines that meet real needs, and
today we remain true to that mission in all our work. Across the globe, Lilly
employees work to discover and bring life-changing medicines to those who need
them, improve the understanding and management of disease, and give back to
communities through philanthropy and volunteerism. To learn more about Lilly,
please visit us at www.lilly.com and www.lilly.com/newsroom/social-channels.


This press release contains forward-looking statements (as that term is defined
in the Private Securities Litigation Reform Act of 1995) about baricitinib as a
potential treatment for patients with rheumatoid arthritis and reflects Lilly’s
and Incyte’s current beliefs. However, as with any pharmaceutical product, there
are substantial risks and uncertainties in the process of development and
commercialization. Among other things, there can be no guarantee that
baricitinib will achieve its primary endpoints, receive regulatory approvals, or
be commercially successful. For further discussion of these and other risks and
uncertainties, see Lilly’s and Incyte’s most recent respective Form 10-K and
Form 10-Q filings with the United States Securities and Exchange Commission.
Except as required by law, Lilly and Incyte undertake no duty to update
forward-looking statements to reflect events after the date of this release.

i American College of Rheumatology, Rheumatoid Arthritis,
Accessed December 5, 2016.
ii Hand Clinics, Advances in the Medical Treatment of Rheumatoid Arthritis,
Accessed December 5, 2016.
iii WHO Global Burden of Disease Report, (table 7, page 32) 2004,
Acce Accessed December 5, 2016.
iv Arthritis Foundation, Medications for Rheumatoid Arthritis,
Accessed December 5, 2016.
v Rheumatoid arthritis, Lancet, https://www.ncbi.nlm.nih.gov/pubmed/27156434.
Accessed December 5, 2016.
viSustained rheumatoid arthritis remission is uncommon in clinical practice,
Arthritis Research & Therapy,
http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3446437/. Accessed December 5, 2016.

Refer to:
Danielle Neveles; danielle.neveles@lilly.com; +1-317-796-4564 (Lilly media)
Phil Johnson; johnson_philip_l@lilly.com; +1-317-655-6874 (Lilly investors)
Catalina Loveman; cloveman@incyte.com; +1-302-498-6171 (Incyte media)
Michael Booth, DPhil; mbooth@incyte.com; +1-302-498-5914 (Incyte investors)

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SOURCE Eli Lilly and Company

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