Shares of Incyte Corporation INCY soared 11.6% after the company announced its acquisition of rights to develop and commercialize Jakafi from Eli Lilly and Company LLY for the treatment of graft-versus-host disease (GVHD).Under the terms of the agreement, Eli Lilly will receive an upfront payment of $35 million from Incyte. Eli Lilly is also eligible to receive additional potential payments upon the achievement of certain regulatory milestones.In addition, Incyte has amended its collaboration and license agreement with Novartis AG NVS, thereby granting exclusive research, development and commercialization rights to Jakafi in the GHVD indication outside the U.S. to Novartis. Per the agreement, Incyte is eligible to receive payments upon the achievement of certain development and regulatory milestones as well as royalties on Jakafi sales in ex-U.S markets.Incyte expects to initiate a pivotal development program on Jakafi for GVHD this year.We note that Jakafi is currently approved in the U.S. for the treatment of patients with polycythemia vera who have had an inadequate response to or are intolerant of hydroxyurea. Jakafi is also approved for the treatment of patients with intermediate or high-risk myelofibrosis (MF), including primary MF, post-polycythemia vera MF, and post-essential thrombocythemia MF. The drug is marketed as Jakavi by Novartis in outside the U.S.In 2015, Jakafi recorded sales of $601 million, up 68.1%. Sales are expected in the range of $800–$815 million for 2016.Incyte currently has a Zacks Rank #3 (Hold). AMAG Pharmaceuticals, Inc. AMAG is a better-ranked stock in the health care sector with a Zacks Rank #1 (Strong Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report LILLY ELI & CO (LLY): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report AMAG PHARMA INC (AMAG): Free Stock Analysis Report INCYTE CORP (INCY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research