Incyte Corp. secured the rights to Calithera BioSciences Inc.'s CB-1158 cancer drug for an upfront payment of $45 million.

Incyte is also investing $8 million in Calithera by purchasing the company's shares at $4.65 apiece.

The agreement gives Incyte the rights to develop and commercialize CB-1158 arginase inhibitor in hematology and oncology. Incyte will fund 70% of the global development costs, with the remaining 30% coming from Calithera.

Calithera will also receive a share of the profits as well as over $430 million in potential milestone-related payments. The agreement provides for Calithera to opt out of its co-funding obligations by foregoing its U.S. profits eligibility.

Calithera will then be eligible to receive up to $750 million in milestone-related payments in such a scenario.

The transaction is expected to close in the first quarter of 2017.