Lexicon Signs Up To $145 Mln Licensing Deal With Ipsen For Carcinoid Drug

(RTTNews) - Lexicon Pharmaceuticals, Inc. (LXRX) Wednesday announced that it has entered into an exclusive licensing agreement, under which French pharmaceutical firm Ipsen S.A. (IPSEY) would commercialize telotristat etiprate outside of North America and Japan for treating carcinoid syndrome. Lexicon retains sole rights to commercialize telotristat etiprate in the United States, Canada and Japan.

Under the financial terms of the deal, Lexicon is eligible to receive up to $145 million, comprising $23 million upfront payment and additional payments contingent upon achievement of clinical, regulatory and commercial milestones.

In addition, Lexicon is also eligible to receive royalties on net sales of telotristat etiprate in the licensed territory.

Lexicon said it is conducting Phase 3 clinical trials of telotristat etiprate for carcinoid syndrome, a serious condition caused by symptomatic neuroendocrine tumors, which produce large amounts of serotonin.

Telotristat etiprate is an oral, small-molecule inhibitor of tryptophan hydroxylase that reduces peripheral serotonin production without affecting brain serotonin levels.

The drug has received fast track status and orphan drug designation from the Food and Drug Administration in the United States, and has received orphan drug designation from the European Medicines Agency.

Lexicon will continue to lead the global Phase 3 clinical program for telotristat etiprate in carcinoid syndrome, from which data are expected in 2015.

Lexicon will continue to be responsible for the potential registration of telotristat etiprate in the U.S., Canada and Japan, while Lexicon and Ipsen will collaborate to seek regulatory approvals in Europe and other countries within the Ipsen licensed territory, with Ipsen assuming the lead responsibility in those markets.

In Paris, Ipsen shares are currently trading at 37.05 euros, up 0.37 percent.