Lexicon Genetics Achieves Two Milestones in Genentech Alliance

Milestone payments total $20 million

22-Dec-2005

Lexicon Genetics Incorporated announced the completion of two performance milestones related to work it is doing in collaboration with Genentech, Inc. The completion of these milestones entitles Lexicon to two performance payments totaling $20 million.

Lexicon received the first of these payments in connection with its achievement of the fourth and final performance milestone in its initial collaboration with Genentech. This milestone relates to the completion by Lexicon of the analysis of the physiological and behavioral functions of the final set of targets selected from Genentech's Secreted Protein Discovery Initiative (SPDI) program.

Lexicon received the second payment under the extension and expansion of the Genentech alliance announced in December 2005. This milestone payment is related to the delivery of data from advanced research already conducted by Lexicon to further elucidate the functions of certain potential therapeutic proteins and antibody targets identified in the companies' initial collaboration. Lexicon will conduct additional advanced research over the next three years and will receive research funding from Genentech for that purpose.

Under the expanded alliance, Genentech has granted Lexicon the exclusive right to develop and commercialize drugs modulating up to six of the targets included in the alliance. Genentech retains an option on the potential development and commercialization of these drugs under a cost and profit sharing arrangement, with Lexicon having certain conditional rights to co-promote drugs on a worldwide basis.

In addition to upfront and performance milestone payments and research funding, Lexicon will receive payments from Genentech upon achievement of milestones related to the development and regulatory approval of certain drugs resulting from the alliance that are developed and commercialized by Genentech. Lexicon is entitled to receive royalties on net sales of these products, provided they are not included in a cost and profit sharing arrangement. Genentech is entitled to receive milestone payments in the event of regulatory approval and royalties on net sales of products commercialized by Lexicon outside of a cost and profit sharing arrangement.

https://www.bionity.com/en/news/51027/lexicon-genetics-achieves-two-milestones-in-genentech-alliance.html