Sanofi Terminates Partnership With Lexicon to Develop Antidiabetic Drug -- Update
July 26 2019 - 7:09PM
Dow Jones News
By Dave Sebastian
Sanofi SA (SNY) on Friday said it is terminating its alliance
with Lexicon Pharmaceuticals Inc. (LXRX) in developing,
manufacturing and commercializing antidiabetic drug Zynquista.
Lexicon called the termination invalid and considers Sanofi to
be in breach of contract.
Lexicon said the agreement requires Sanofi to continue to fund
ongoing clinical trials for the drug for a period of time after
termination.
"In the event of a valid termination of the Sanofi alliance, we
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," Lonnel Coats,
Lexicon's president and chief executive officer, said in a
statement.
The U.S. Food and Drug Administration in March rejected the drug
application for Zynquista.
Sanofi, in a statement provided to The Wall Street Journal, said
it terminated the alliance with Lexicon due to not reaching primary
endpoints in Zynquista's Phase 3 studies.
"Sanofi believes our termination is valid," Sanofi said. "We
have expressed willingness to work with Lexicon to ensure a smooth
transition of the studies."
Sanofi on Friday also released topline results from three
Zynquista Phase 3 trials in adults living with type 2 diabetes. Two
of the trials demonstrated a statistically significant reduction in
blood-sugar control in some patients. The other trial missed the
statistical significance on blood-sugar control reduction compared
with the effect of placebo in patients with stage 4 chronic kidney
disease at 26 weeks.
Shares of Lexicon plunged 47.8% to $2.97 in after-hours trading
on Friday. Sanofi shares were unchanged at $42.36 in the after
market.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
July 26, 2019 18:54 ET (22:54 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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