Sanofi to pay Lexicon $260 million for terminated partnership
(Reuters) - Lexicon Pharmaceuticals Inc said on Tuesday France’s Sanofi SA will pay the drugmaker $260 million for the termination of their partnership to develop diabetes drug Zynquista.
Shares of Lexicon jumped 37.8% to $2.37 in after hours trading.
Under the terms of the settlement, Sanofi will pay $208 million upfront and the remainder within twelve months to Lexicon, which was eligible to receive up to $1.4 billion in milestone payments under the partnership.
The four-year partnership was terminated by Sanofi in July after the results of three late-stage studies of Zynquista, which is being developed as an add-on to insulin for diabetic patients.
The drug has been approved in the European Union for use in type 1 diabetic patients but failed to win U.S. approval in March, months after a panel of experts raised concerns of the risk of diabetic ketoacidosis (DKA).
DKA is a life-threatening condition in which acids called ketones build up when the body starts to use fat instead of glucose as a source of energy.
SEPTEMBER 11, 2019
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