Incyte Corp. /zigman2/quotes/204510994/composite INCY +0.17% said Tuesday it will receive an upfront payment of $17.5 million as part of a license agreement with Zai Lab Ltd. /zigman2/quotes/202307458/composite ZLAB -2.13% for the development and commercialization of Incyte's cancer treatment INCMGA0012 in China. Under terms of the agreement, Incyte is eligible to receive up to an additional $60 million in milestone payments, as well as tiered royalty payments from the "low to mid-twenties." In return, Zai Lab will have exclusive rights to commercialize INCMGA0012 in China, Hong Kong, Macau and Taiwan. Incyte and Zai Lab shares were still inactive in the premarket. Over the past three months, Incyte shares have lost 1.5% and Zai Lab's stock has climbed 19.4%, while the iShares Nasdaq Biotechnology ETF /zigman2/quotes/206189322/composite IBB +0.56% has slipped 2.7% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.18% has gained 3.4%.