Sanofi Terminates Partnership With Lexicon To Develop Diabetes Drug

(RTTNews) - Sanofi (SNYNF, SNY) said that it terminated its partnership with Lexicon Pharmaceuticals Inc (LXRX) to develop, manufacture, and commercialize Zynquista in all ongoing global type 1 and type 2 diabetes programs.

The termination of the partnership came after the mixed results from three late-stage studies of the oral drug, Zynquista.

However, Sanofi said the ongoing Phase 3 clinical trials will continue and there will be no immediate changes. It has expressed willingness to work with Lexicon to ensure a smooth transition of the studies.

Separately, Lexicon said it has not yet received the underlying data, and expects to conduct its own review and validation and statistical analysis of the data when they are received.

Lexicon said it considers Sanofi to be in breach of contract and the termination invalid.

"While we are disappointed in the position taken by Sanofi, we are confident in the strength of the data we have seen thus far in the type 2 diabetes program and are optimistic about achieving continued success in the balance of the core Phase 3 program, which we expect will be completed in the coming months," said Lonnel Coats, Lexicon's president and chief executive officer.

Lexicon said that, in the event of a valid termination of the Sanofi alliance, it will also look forward to regaining full rights to Zynquista in type 1 diabetes in the United States, as well as rights in the remainder of the world, notably including the European Union, in which Zynquista has already received approval.