Sanofi will pay Lexicon Pharmaceuticals $260 million to terminate a partnership related to the development of a diabetes drug.
After four years of working together to develop the drug, Zynquista, Sanofi chose to opt out of the project after results from three late-stage trials. Although Zynquista, which was developed as an add-on for insulin, is approved in the EU, the FDA rejected the treatment after a panel of experts raised concerns that it could increase the risk of diabetic ketoacidosis, a potentially deadly condition.
Lexicon stood to receive up to $1.4 billion in milestone payments for Zynquista — now, Sanofi will pay $208 million upfront and then the rest over the next 12 months to terminate the agreement. Lexicon will keep the global rights to develop and market Zynquista for types 1 and 2 diabetes.
Read the Reuters report.
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