UPDATE 3-Novartis strikes licensing deal with Incyte

* Gains access to 2 therapies for blood disorders, cancers

* Novartis to pay Incyte $150 million upfront

* Also pays $60 mln milestone at start of Phase III trial

* Incyte shares rise 5.3 pct; Novartis up 0.6 pct (Adds Incyte share activity, further analyst comment)

ZURICH, Nov 25 (Reuters) - Swiss drugmaker Novartis (NOVN.VX) has struck a licensing deal with Incyte Corp (INCY.O), paying $150 million up front for access to therapies to treat patients with life-threatening blood disorders and cancers.

Incyte shares rose as much as 11.9 percent to their highest level in 14 months.

The move, which boosts Novartis' position in oncology, gives it rights to Incyte's experimental Janus kinase, or JAK, inhibitor outside the United States and to future development of an early-stage cMET inhibitor globally, Novartis said.

Incyte's JAK inhibitor, known as INCB18424, is in Phase III clinical trials for the treatment of myelofibrosis, a life-threatening condition with no effective medical treatment.

Novartis will pay $150 million upfront to Incyte and $60 million tied to a European study of INCB18424 that began in July. Incyte is also eligible for milestone payments and royalties on future sales.

JPMorgan analyst Cory Kasimov said the deal terms for Incyte "exceed expectations, and importantly, are all the more impressive when considering that Incyte was able to retain 100 percent of U.S. rights.

"Management has clearly delivered a high quality deal with an ideal partner that has formidable experience building a market in the hematology-oncology field," Kasimov said in a research note.

Incyte shares were up 41 cents, or 5.3 percent, at $8.13 in morning Nasdaq trading, where they rose as high as $8.64. Novartis shares rose 0.6 percent.

Kepler analyst Tero Weckroth said the deal did not seem to be overly expensive, especially as the JAK inhibitor was in late-stage trials: "The deal is neutral to slightly positive to sentiment."

Myelofibrosis is characterized by varying degrees of bone marrow failure, enlarged spleen and debilitating symptoms, Novartis said.

"INCB18424 has the potential of becoming a first-in-class therapeutic agent for the treatment of this and other hematologic diseases," the company said. (Reporting by Katie Reid; Additional reporting by Lewis Krauskopf in New York; Editing by Sam Cage and Lisa Von Ahn) ((katie.reid@reuters.com; +41 58 306 7320; Reuters Messaging:katie.reid.reuters.com@reuters.net))