Lexicon Pharmaceuticals Inks Exclusive License Agreement With Novo Nordisk A/S For LX9851

(RTTNews) - Lexicon Pharmaceuticals, Inc. (LXRX) announced Friday that it has entered into an exclusive license agreement with Novo Nordisk A/S for LX9851, a first-in-class, oral non-incretin development candidate in obesity and associated metabolic disorders.

Under the terms of the agreement, Novo Nordisk obtains an exclusive, worldwide license to develop, manufacture and commercialize LX9851 in all indications.

Lexicon will be responsible for completing agreed upon Investigational New Drug (IND) application-enabling activities for LX9851, while Novo Nordisk will be responsible for filing the IND, all further development, manufacturing and commercialization of LX9851.

Lexicon is eligible to receive upfront and near-term milestone payments of up to $75 million. In total, Lexicon will be eligible to receive $1 billion in upfront and potential development, regulatory and sales milestone payments. Lexicon is also entitled to tiered royalties on net sales of LX9851.

LX9851, discovered and developed by Lexicon, is a potent and selective oral small molecule inhibitor of Acyl-CoA Synthetase 5 (ACSL5). ACSL5 plays a key role in the metabolic pathway which regulates fat accumulation and energy balance.