Incyte Corporation INCY announced that it is out-licensing the development and commercialization rights to its investigational PD-1 monoclonal antibody, INCMGA0012, in Greater China to Zai Lab. The transaction takes effect immediately.INCMGA0012 is currently being developed as a monotherapy for treating MSI-high endometrial cancer, merkel cell carcinoma and anal cancer. Incyte in-licensed global rights to INCMGA0012 from MacroGenics MGNX in 2017.Per the collaboration and license agreement, Incyte will receive an upfront payment of $17.5 million from Zai Lab and be also eligible to earn an additional $60 million as potential milestone fees apart from tiered royalties in low to mid-twenties’ range. However, Incyte will be responsible for all the royalties and pass-through payments to its licensing partner, MacroGenics.With this deal, Zai Lab will gain exclusive rights to develop/commercialize INCMGA0012 for addressing hematology and oncology indications in mainland China, Hong Kong, Macau and Taiwan. Zai Lab is looking to explore the potential of INCMGA0012 both as a monotherapy and in combination with its existing pipeline candidates.Moreover, Incyte will retain an option to assist the promotion of INCMGA0012 at Zai Lab’s licensed territories.Shares of Incyte have rallied 33.7% so far this year, outperforming the industry’s rise of 7%.We would like to remind investors that Incyte has several encouraging collaboration deals with big pharma companies like Novartis NVS and Lilly LLY wherein the former gets a considerable amount of milestones for the same.Notably, Incyte has a strategic collaboration pact with China-based Innovent Biologics for the development of three clinical-stage product candidates, namely pemigatinib (FGFR1/2/3 inhibitor), itacitinib (JAK1 inhibitor) and parsaclisib (PI3Kδ inhibitor). The contract triggered an upfront payment of $40 million in cash for Incyte, which is also entitled to clinch an additional $20 million in connection with the first investigational new drug (IND) application, expected to be filed by Innovent in China this year.Zacks RankIncyte currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Hottest Tech Mega-Trend of AllLast year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.See Zacks' 3 Best Stocks to Play This Trend >>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 Eli Lilly and Company (LLY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report MacroGenics, Inc. (MGNX): Free Stock Analysis Report Incyte Corporation (INCY): Free Stock Analysis Report To read this article on Zacks.com click here.