Lexicon, Symphony Icon deal

Lexicon exercised its option to acquire Symphony Icon. Lexicon gained the option in 2007 when it out-licensed gastrointestinal candidates to Symphony Icon, which was formed by private equity firm Symphony Capital and co-investors with a $45 million investment. Symphony Icon will receive $50 million in deferred payments, minus 50% of any development costs Lexicon incurs, with a maximum reduction of $15 million. Additionally, Symphony Icon will receive 50% of any payments resulting from out-licensing any of the programs, up to $30 million, unless the program has been approved in the U.S. If a program receives U.S. approval, Lexicon will make a payment to Symphony Icon of $15 million in lieu of the out-licensing payments, plus whatever portion of deferred development costs are outstanding for that specific product. Under the deal, all payments made on or before July 30, 2012 will consist of at least 50% Lexicon stock. Payments made after that date will consist of no more than 50% stock (see BioCentury, June 25, 2007). ...