Sanofi licenses Lexicon's sotagliflozin

Lexicon Pharmaceuticals Inc. (NASDAQ:LXRX) gained $2.50 (24%) to $13.04 on Friday after it licensed exclusive worldwide rights for diabetes therapy sotagliflozin (LX4211) to Sanofi (Euronext:SAN; NYSE:SNY). Lexicon received an upfront payment of $300 million and is eligible for $1.4 billion in development, regulatory and sales milestones, as well as escalating double-digit royalties. The product is a dual sodium-glucose cotransporter 1 ( SGLT1) and SGLT2 inhibitor.

Lexicon will be responsible for development in Type I diabetes, for which the sotagliflozin is in two Phase III trials that are expected to have results in 2H16. In Type II diabetes, Sanofi will be responsible for all development costs, although Lexicon will contribute up to $100 million over three years to fund a portion of development. Sanofi expects to begin Phase III trials in the indication next year. ...