WILMINGTON, DE — Prelude Therapeutics Incorporated (Nasdaq: PRLD) announced a series of strategic updates aimed at sharpening its development priorities and extending its financial runway. The biotechnology company has executed an option agreement with Incyte Corporation centered on its JAK2V617F mutant selective inhibitor program, is prioritizing development of its first-in-class KAT6A selective degrader for ER+ breast cancer, and is pausing further clinical work on its SMARCA2 degrader programs.
Under the agreement, Incyte secured an exclusive option to acquire Prelude’s JAK2V617F program in exchange for an upfront payment of $35 million and a $25 million equity investment, with an additional $100 million due if Incyte exercises its option. Prelude could also receive up to $775 million in future milestone payments and royalties on global net sales. Prelude will continue to develop the program during the option period, after which Incyte would assume worldwide development and commercialization if the option is exercised.
“This morning, we announced important strategic decisions that we believe provide the most compelling set of opportunities to address important unmet needs for patients and value creation for our investors,” said Kris Vaddi, Ph.D., Chief Executive Officer of Prelude. “Our research team made significant breakthroughs in discovering highly differentiated molecules targeting clinically validated mechanisms that are positioned to enter the clinic in 2026. These molecules present potential proof of concept and differentiation opportunities early in clinical development with well understood development paths.”
Vaddi continued, “Having actively pursued the clinical development of our SMARCA2 selective degraders, we determined that complex biology and aggressiveness of disease in patients with SMARCA4 deletions will likely require early intervention and combination strategies to make a meaningful impact for patients. We are not resourced to explore the mechanism fully in the timeframe needed to deliver a concrete and viable path forward. In addition, we believe that optimally resourcing the JAK2V617F mutant selective inhibitor and KAT6A degrader programs are of paramount importance and as noted in this morning’s previous announcement, the agreement with Incyte brings in significant capital enabling us to advance both programs.”
The company expects its cash runway to extend into 2027 based on current estimates — potentially into the third quarter of 2028 if Incyte exercises its option. As of October 31, 2025, Prelude reported approximately $52 million in cash, cash equivalents, and marketable securities, and will receive an additional $60 million upon the closing of the Incyte agreement.
Prelude’s KAT6A selective degrader program remains on track to enter clinical development in 2026. The company believes that selectively degrading KAT6A, rather than dual KAT6A/B inhibition, could improve efficacy, tolerability, and combinability in ER+ breast cancer treatment.
Prelude also announced the departure of President and Chief Medical Officer Jane Huang, M.D. to pursue other opportunities. “Lastly, we would like to thank Dr. Huang for her many contributions to Prelude and wish her continued success in her future endeavors,” said Vaddi. “We are honored and gratified that Dr. Sandor is stepping in to provide strategic leadership and oversight of our clinical development programs, as we prepare for IND filing and first in human studies for the mutant selective JAK2V617F and KAT6A programs.”
Dr. Victor Sandor, M.D.C.M., former Chief Medical Officer of Array BioPharma and current Prelude board member, will oversee clinical development as the company advances both programs.
Prelude Therapeutics plans to release its third-quarter 2025 financial results and host an investor conference call on November 12, 2025.
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